Concentrations Of Credit

12 Months Ended

Dec. 31, 2011

Concentrations of Credit [Abstract]

Concentrations of Credit

Note 9 — Concentrations of Credit

Properties collateralizing mortgage loans held-for-investment were geographically disbursed throughout the United States (measured by principal balance and expressed as a percent of the total).

	December 31,
State	2011			2010
California		32.4	%		30.6	%
Florida		12.9			9.6
Michigan		9.2			9.4
Washington		4.8			5.2
Texas		3.2			4.2
Arizona		4.1			3.5
Colorado		2.8			3.1
All other states(1)		30.6			34.4
		100.0	%		100.0	%

(1) No other state contains more than 3.0 percent of the total.

A substantial portion of the Company’s commercial real estate loan portfolio at December 31, 2011, 44.5 percent, is collateralized by properties located in Michigan. At December 31, 2010, the Company’s commercial real estate portfolio in Michigan was 53.1 percent of the total portfolio.

Additionally, the following loan products’ contractual terms may give rise to a concentration of credit risk and increase the Company’s exposure to risk of non-payment or realization:

(a) Hybrid or ARM loans that are subject to future payment increases;

(b) Option ARM loans that permit negative amortization; and

(c) Loans under (a) or (b) above with loan-to-value ratios above 80 percent;

The following table details the unpaid principal balance of these loans at December 31, 2011 and 2010.

	Held-for-Investment Portfolio Loans
	December 31, 2011		December 31, 2010
	(Dollars in thousands)
Amortizing hybrid ARMs
3/1 ARM	$	148,742	$	178,958
5/1 ARM		666,573		501,903
7/1 ARM		75,503		57,060
Interest only hybrid ARMs
3/1 ARM		222,200		253,483
5/1 ARM		1,048,931		1,211,098
7/1 ARM		89,381		89,471
Option ARMs		91,786		101,297
All other ARMs		115,218		126,478
	$	2,458,334	$	2,519,748

Of the loans listed above, the following have original loan-to-value ratios exceeding 80 percent.

	Principal Outstanding
	December 31, 2011		December 31, 2010
	(Dollars in thousands)
Loans with original loan-to-value ratios above 80 percent
> 80%< = 90%	$	144,988	$	155,624
> 90%< = 100%		150,513		151,857
>100%		6,572		6,738
	$	302,073	$	314,219