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VACATION OWNERSHIP NOTES RECEIVABLE (Tables)
 9 Months Ended
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Composition of vacation ownership notes receivable balances, net of reserves
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
September 30, 2020December 31, 2019
($ in millions)OriginatedAcquiredTotalOriginatedAcquiredTotal
Securitized$1,348 $302 $1,650 $1,378 $372 $1,750 
Non-securitized
Eligible for securitization(1)
52 2 54 155 10 165 
Not eligible for securitization(1)
176 33 209 261 57 318 
Subtotal228 35 263 416 67 483 
$1,576 $337 $1,913 $1,794 $439 $2,233 
_________________________
(1)Refer to Footnote 7 “Financial Instruments” for a discussion of eligibility of our vacation ownership notes receivable for securitization.
Interest income associated with vacation ownership notes receivable The following table summarizes interest income associated with vacation ownership notes receivable.
Three Months EndedNine Months Ended
($ in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest income associated with vacation ownership notes receivable — securitized$59 $58 $186 $176 
Interest income associated with vacation ownership notes receivable — non-securitized4 11 13 25 
Total interest income associated with vacation ownership notes receivable$63 $69 $199 $201 
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable
The following table shows future contractual principal payments, as well as interest rates, for our non-securitized and securitized acquired vacation ownership notes receivable at September 30, 2020.
Acquired Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2020, remaining$1 $14 $15 
20214 41 45 
20224 41 45 
20234 40 44 
20244 38 42 
Thereafter18 128 146 
Balance at September 30, 2020$35 $302 $337 
Weighted average stated interest rate13.4%13.5%13.4%
Range of stated interest rates
3.0% to 17.9%
6.0% to 15.9%
3.0% to 17.9%
The following table shows future principal payments, net of reserves, as well as interest rates, for our originated non-securitized and securitized originated vacation ownership notes receivable at September 30, 2020.
Originated Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2020, remaining$10 $34 $44 
202131 135 166 
202226 138 164 
202321 139 160 
202419 148 167 
Thereafter121 754 875 
Balance at September 30, 2020$228 $1,348 $1,576 
Weighted average stated interest rate12.3%12.7%12.6%
Range of stated interest rates
0.0% to 18.0%
0.0% to 17.5%
0.0% to 18.0%
Financing receivable, nonaccrual
The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020$86 $11 $97 
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019$43 $11 $54 
The following table shows our recorded investment in non-accrual Legacy-ILG vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020$96 $12 $108 
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019$40 $9 $49 
Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of September 30, 2020.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
31 – 90 days past due$8 $27 $35 
91 – 150 days past due5 12 17 
Greater than 150 days past due80 — 80 
Total past due93 39 132 
Current167 1,122 1,289 
Total vacation ownership notes receivable$260 $1,161 $1,421 
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2019.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
31 – 90 days past due$7 $33 $40 
91 – 150 days past due4 11 15 
Greater than 150 days past due39 — 39 
Total past due50 44 94 
Current222 1,254 1,476 
Total vacation ownership notes receivable$272 $1,298 $1,570 
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of September 30, 2020.
Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
31 – 90 days past due$7 $22 $29 
91 – 120 days past due3 7 10 
Greater than 120 days past due93 5 98 
Total past due103 34 137 
Current85 606 691 
Total vacation ownership notes receivable$188 $640 $828 
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of December 31, 2019.
Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
31 – 90 days past due$11 $18 $29 
91 – 120 days past due3 6 9 
Greater than 120 days past due37 3 40 
Total past due51 27 78 
Current250 539 789 
Total vacation ownership notes receivable$301 $566 $867 
Schedule of financing receivable
The following table details the origination year of our Legacy-MVW vacation ownership notes receivable as of September 30, 2020.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Year of Origination
2020$84 $90 $174 
201972 419 491 
201840 278 318 
201720 167 187 
201610 78 88 
2015 and Prior34 129 163 
$260 $1,161 $1,421 
Financing receivable credit quality indicators
The following tables show the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score, before reserves. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.
Acquired Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$91 $52 $4 $11 $158 
Sheraton87 77 14 33 211 
Hyatt13 9 1 1 24 
Other2 1 — 2 5 
$193 $139 $19 $47 $398 
Acquired Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$103 $57 $4 $13 $177 
Sheraton95 83 15 37 230 
Hyatt15 10 1 — 26 
Other3 1 — 2 6 
$216 $151 $20 $52 $439 
The following table details the origination year of our Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of September 30, 2020. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.
Acquired Vacation Ownership Notes Receivable - Westin
($ in millions)202020192018201720162015 & PriorTotal
700 +$— $— $25 $25 $15 $26 $91 
600 - 699— — 12 14 10 16 52 
< 600— — 2 1 — 1 4 
No Score— — 3 2 2 4 11 
$— $— $42 $42 $27 $47 $158 
Acquired Vacation Ownership Notes Receivable - Sheraton
($ in millions)202020192018201720162015 & PriorTotal
700 +$— $— $25 $24 $15 $23 $87 
600 - 699— — 20 20 13 24 77 
< 600— — 8 3 1 2 14 
No Score— — 9 9 6 9 33 
$— $— $62 $56 $35 $58 $211 
Acquired Vacation Ownership Notes Receivable - Hyatt and Other
($ in millions)202020192018201720162015 & PriorTotal
700 +$— $— $3 $3 $3 $6 $15 
600 - 699— — 2 2 2 4 10 
< 600— — — — — 1 1 
No Score— — — — — 3 3 
$— $— $5 $5 $5 $14 $29 
The following tables show the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score, before reserves. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.
Originated Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$105 $51 $5 $19 $180 
Sheraton101 69 16 41 227 
Hyatt15 7 1 — 23 
$221 $127 $22 $60 $430 
Originated Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$122 $46 $5 $25 $198 
Sheraton97 61 13 37 208 
Hyatt16 6 — — 22 
$235 $113 $18 $62 $428 
The following tables detail the origination year of our Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of September 30, 2020. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.
Originated Vacation Ownership Notes Receivable - Westin
($ in millions)202020192018201720162015 & PriorTotal
700 +$24 $66 $15 $— $— $— $105 
600 - 69910 33 8 — — — 51 
< 6002 3 — — — — 5 
No Score6 11 2 — — — 19 
$42 $113 $25 $— $— $— $180 
Originated Vacation Ownership Notes Receivable - Sheraton
($ in millions)202020192018201720162015 & PriorTotal
700 +$23 $61 $17 $— $— $— $101 
600 - 69915 42 12 — — — 69 
< 6004 10 2 — — — 16 
No Score9 26 6 — — — 41 
$51 $139 $37 $— $— $— $227 
Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)202020192018201720162015 & PriorTotal
700 +$3 $10 $2 $— $— $— $15 
600 - 6991 4 2 — — — 7 
< 6001 — — — — — 1 
No Score— — — — — — — 
$5 $14 $4 $— $— $— $23 
Acquired  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes receivable reserves
The following table summarizes the activity related to our acquired vacation ownership notes receivable reserve.
Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2019, as reported$— $— $— 
Impact of adoption of ASU 2016-13
29 26 55 
Opening Balance at January 1, 202029 26 55 
Securitizations(1)1 — 
Clean-up call1 (1)— 
Write-offs(16)— (16)
Recoveries8 — 8 
Increase in vacation ownership notes receivable reserve(1)
14 — 14 
Balance at September 30, 2020$35 $26 $61 
_________________________
(1)Increase in vacation ownership notes receivable reserve includes $10 million ($2 million non-securitized and $8 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.
Originated  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes receivable reserves
The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
Originated Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2019$90 $114 $204 
Increase in vacation ownership notes receivable reserve(1)
49 48 97 
Securitizations(70)70 — 
Clean-up call37 (37)— 
Write-offs(27)— (27)
Defaulted vacation ownership notes receivable repurchase activity(2)
72 (72)— 
Balance at September 30, 2020$151 $123 $274 
_________________________
(1)Increase in vacation ownership notes receivable reserve includes $42 million ($16 million non-securitized and $26 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.
(2)Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve were attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable.