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Lending Activities (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Composition of Mortgages and Other Loans Receivable
(in millions)September 30, 2022December 31, 2021
Commercial mortgages(a)
$35,824 $35,665 
Residential mortgages5,640 5,492 
Life insurance policy loans1,773 1,843 
Commercial loans, other loans and notes receivable(b)
5,542 3,677 
Total mortgage and other loans receivable48,779 46,677 
Allowance for credit losses(c)
(655)(629)
Mortgage and other loans receivable, net$48,124 $46,048 
(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 19 percent and 12 percent, respectively, at September 30, 2022 and 21 percent and 10 percent, respectively, at December 31, 2021).
(b)Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by apartments. As of September 30, 2022 and December 31, 2021, the net carrying value of these loans were $176 million and $15 million, respectively.
(c)Does not include allowance for credit losses of $87 million and $71 million, respectively, at September 30, 2022 and December 31, 2021, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
Credit Quality
The following table presents debt service coverage ratios(a) for commercial mortgages by year of vintage:
September 30, 202220222021202020192018PriorTotal
(in millions)
>1.2X$4,521 $2,318 $1,885 $5,056 $3,936 $11,491 $29,207 
1.00 - 1.20X425 712 504 424 382 1,443 3,890 
<1.00X— — 21 52 1,026 1,628 2,727 
Total commercial mortgages$4,946 $3,030 $2,410 $5,532 $5,344 $14,562 $35,824 
December 31, 202120212020201920182017PriorTotal
(in millions)
>1.2X$2,245 $1,662 $5,126 $3,926 $3,557 $10,796 $27,312 
1.00 - 1.20X574 1,019 700 1,138 136 1,929 5,496 
<1.00X1 27 71 925 41 1,792 2,857 
Total commercial mortgages$2,820 $2,708 $5,897 $5,989 $3,734 $14,517 $35,665 
The following table presents loan-to-value ratios(b) for commercial mortgages by year of vintage:
September 30, 202220222021202020192018PriorTotal
(in millions)
Less than 65%$4,225 $2,464 $2,171 $4,048 $3,667 $10,418 $26,993 
65% to 75%721 329 213 1,484 1,359 2,854 6,960 
76% to 80%— 237 — — — 99 336 
Greater than 80%— — 26 — 318 1,191 1,535 
Total commercial mortgages$4,946 $3,030 $2,410 $5,532 $5,344 $14,562 $35,824 
December 31, 202120212020201920182017PriorTotal
(in millions)
Less than 65%$2,286 $2,272 $4,149 $4,815 $2,892 $9,902 $26,316 
65% to 75%372 410 1,748 1,174 406 3,490 7,600 
76% to 80%— — — — 188 274 462 
Greater than 80%162 26 — — 248 851 1,287 
Total commercial mortgages$2,820 $2,708 $5,897 $5,989 $3,734 $14,517 $35,665 
(a)The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 2.0X at period ended September 30, 2022 and 1.9X at period ended December 31, 2021. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional relevant information becomes available.
(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent at both September 30, 2022 and December 31, 2021. The loan-to-value ratios have been updated within the last three months.
The following table presents the credit quality performance indicators for commercial mortgages:
Number
of
Loans		ClassPercent
of
Total
(dollars in millions)ApartmentsOfficesRetailIndustrialHotelOthersTotal
September 30, 2022
Credit Quality Performance Indicator:
In good standing620$13,472 $9,785 $3,631 $5,597 $2,008 $368 $34,861 98 %
Restructured(a)
11— 456 140 — 137 — 733 2 
90 days or less delinquent1— 157 — — — — 157 — 
>90 days delinquent or in process of foreclosure3— 30 43 — — — 73 — 
Total(b)
635$13,472 $10,428 $3,814 $5,597 $2,145 $368 $35,824 100 %
Allowance for credit losses$94 $275 84 72 30 9 $564 2 %
December 31, 2021
Credit Quality Performance Indicator:
In good standing636$14,267 $9,695 $4,778 $3,858 $1,985 $432 $35,015 98 %
Restructured(a)
8— 354 25 — 136 — 515 2 
90 days or less delinquent—— — — — — — — — 
>90 days delinquent or in process of foreclosure5— 81 54 — — — 135 — 
Total(b)
649$14,267 $10,130 $4,857 $3,858 $2,121 $432 $35,665 100 %
Allowance for credit losses$109 $247 $103 $47 $31 $8 $545 2 %
(a)Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings, see Note 6 to the Consolidated Financial Statements in the 2021 Annual Report.
(b)Does not reflect allowance for credit losses.
The following table presents credit quality performance indicators for residential mortgages by year of vintage:
September 30, 202220222021202020192018PriorTotal
(in millions)
FICO*:
780 and greater$205 $2,233 $663 $237 $80 $574 $3,992 
720 - 779219 737 171 76 32 171 1,406 
660 - 71913 81 29 16 9 62 210 
600 - 659— 4 2 2 2 14 24 
Less than 600— — — 1 — 7 8 
Total residential mortgages$437 $3,055 $865 $332 $123 $828 $5,640 
December 31, 202120212020201920182017PriorTotal
(in millions)
FICO*:
780 and greater$1,601 $691 $297 $107 $192 $501 $3,389 
720 - 7791,306 230 86 44 58 154 1,878 
660 - 71948 42 22 12 20 49 193 
600 - 6591 1 2 3 2 12 21 
Less than 600— — 1 1 2 7 11 
Total residential mortgages$2,956 $964 $408 $167 $274 $723 $5,492 
*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months.
Allowance for Credit Loss
The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable(a):
Three Months Ended September 30,20222021
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of period$525 $78 $603 $587 $114 $701 
Loans charged off— — — (2)— (2)
Net charge-offs— — — (2)— (2)
Addition to (release of) allowance for loan losses39 13 52 (28)1 (27)
Reclassified to held for sale(b)
— — — — (31)(31)
Allowance, end of period$564 $91 $655 $557 $84 $641 
Nine Months Ended September 30,20222021
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of year$545 $84 $629 $685 $129 $814 
Loans charged off(4)— (4)(2)— (2)
Net charge-offs(4)— (4)(2)— (2)
Addition to (release of) allowance for loan losses23 7 30 (126)(14)(140)
Reclassified to held for sale(b)
— — — — (31)(31)
Allowance, end of period$564 $91 $655 $557 $84 $641 
(a)Does not include allowance for credit losses of $87 million and $83 million, respectively, at September 30, 2022 and 2021 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
(b)Reported in Other assets in the Condensed Consolidated Balance Sheets.