Acquired Property Net

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 31, 2011

Notes to Consolidated Financial Statements

Acquired Propery Net

7.  Acquired Property, Net

Acquired property, net consists of heldforsale foreclosed property received in full satisfaction of a loan net of a valuation allowance for declines in the fair value of foreclosed properties after initial acquisition. We classify as held for sale those properties that we intend to sell and are actively marketed for sale. The following table displays the activity in acquired property and the related valuation allowance for the three and six monthsended June 30, 2011and 2010.

	For the Three Months Ended							For the Six Months Ended
	June 30, 2011							June 30, 2011
	Acquired Property		Valuation Allowance(1)		Acquired Property, Net		Acquired Property		Valuation Allowance(1)		Acquired Property, Net
	(Dollars in millions)
Balance as of beginning of period	$	16,928	$	(1,664)	$	15,264	$	18,054	$	(1,881)	$	16,173
Additions		4,998		(149)		4,849		9,887		(278)		9,609
Disposals		(7,011)		788		(6,223)		(13,026)		1,518		(11,508)
Write-downs, net of recoveries		-		(298)		(298)		-		(682)		(682)
Balance as of end of period	$	14,915	$	(1,323)	$	13,592	$	14,915	$	(1,323)	$	13,592
	For the Three Months Ended							For the Six Months Ended
	June 30, 2010							June 30, 2010
	Acquired Property		Valuation Allowance(1)		Acquired Property, Net		Acquired Property		Valuation Allowance(1)		Acquired Property, Net
	(Dollars in millions)
Balance as of beginning of period	$	13,053	$	(684)	$	12,369	$	9,716	$	(574)	$	9,142
Additions		6,828		(238)		6,590		13,590		(290)		13,300
Disposals		(4,740)		319		(4,421)		(8,165)		525		(7,640)
Write-downs, net of recoveries		-		(517)		(517)		-		(781)		(781)
Balance as of end of period	$	15,141	$	(1,120)	$	14,021	$	15,141	$	(1,120)	$	14,021

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(1)	Reflects activities in the valuation allowance for acquired properties held primarily by our single-family segment.