VACATION OWNERSHIP MORTGAGES RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2017

VACATION OWNERSHIP MORTGAGES RECEIVABLE

Vacation ownership mortgages receivable carrying amounts as of June 30, 2017 and December 31, 2016 were as follows (in millions):


	June 30,						December 31,
	2017						2016
	Securitized		Unsecuritized(2)		Total		Securitized		Unsecuritized(2)		Total
Acquired vacation ownership mortgages receivable(1)	$	363	$	97	$	460	$	419	$	127	$	546
Originated vacation ownership mortgages receivable(1)		19		272		291		11		184		195
Less: allowance for impairment on acquired loans		(1)		(4)		(5)		—		—		—
Less: allowance for losses on originated loans		(2)		(34)		(36)		(1)		(21)		(22)
Net vacation ownership mortgages receivable	$	379	$	331	$	710	$	429	$	290	$	719

(1)

At various interest rates with varying payment terms through 2031 for acquired receivables and for originated receivables

(2)

As of June 30, 2017, $9 million of unsecuritized vacation ownership receivables were not eligible for securitization. Additionally, during the six month period, approximately $19 million of unsecuritized receivables as of December 31, 2016 were moved into the 2016 securitized pool, thereby releasing the same amount from restricted cash.

Schedule of changes in accretable yield


	Six Months Ended
Accretable Yield	June 30, 2017
Balance, beginning of period	$	156
Accretion		(29)
Reclassification from nonaccretable difference		(1)
Balance, end of period	$	126
Nonaccretable difference, end of period balance	$	39

Schedule to mature mortgages receivables

Vacation ownership mortgages receivable as of June 30, 2017 are scheduled to mature as follows (in millions):


	Vacation Ownership Mortgages Receivable
	Acquired				Originated
Twelve month period ending June 30,	Securitized Loans		Unsecuritized Loans		Securitized Loans		Unsecuritized Loans		Total
2018	$	40	$	11	$	1	$	19	$	71
2019		39		10		1		17		67
2020		39		9		2		19		69
2021		37		10		2		21		70
2022		34		10		2		23		69
2023 and thereafter		100		36		11		173		320
Total		289		86		19		272		666
Plus: net premium on acquired loans(1)		74		11		—		—		85
Less: allowance for impairment on acquired loans		(1)		(4)		—		—		(5)
Less: allowance for losses on originated loans		—		—		(2)		(34)		(36)
Net vacation ownership mortgages receivable	$	362	$	93	$	17	$	238	$	710
Weighted average stated interest rate as of June 30, 2017		13.3%				13.5%
Range of stated interest rates as of June 30, 2017		8.0% to 15.9%				12.9% to 14.9%

(1)

The difference between the contractual principal amount of acquired loans of $375 million and the net carrying amount of $455 million as of June 30, 2017 is related to the application of ASC 310-30.

Schedule of vacation ownership notes receivable by brand and by FICO score

Balances of our vacation ownership mortgages receivable by brand and by FICO score (at time of loan origination) were as follows (in millions):


		As of June 30, 2017
	700+		600-699		<600		No Score(1)		Total
Westin	$	189	$	91	$	4	$	28	$	312
Sheraton		165		146		12		63		386
Hyatt		21		14		2		-		37
Other		6		1		-		4		11
Vacation ownership mortgages receivable, gross	$	381	$	252	$	18	$	95	$	746

(1)

Mortgages receivable with no FICO score primarily relate to non-U.S. resident borrowers.

Schedule of past-due and nonaccrual status of mortgages receivable

Our aged analysis of delinquent vacation ownership mortgages receivable and the gross balance of vacation ownership mortgages receivable greater than 120 days past‑due, as of June 30, 2017 and December 31, 2016, for our originated loans are as follows (in millions):


					Delinquent							Defaulted(1)
	Receivables		Current		30-59 Days		60-89 Days		90-119 Days		≥120			Total Delinquent & Defaulted
Originated Loans
June 30, 2017	$	291	$	281	$	3	$	2	$	2	$	3	$	10
December 31, 2016	$	195	$	190	$	2	$	1	$	1	$	1	$	5

Mortgages receivable equal to or greater than 120 days are considered defaulted and have been fully reserved in our allowance of loan losses for originated loans.