We have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. These transfers have occurred through Agency securitization, Non-Agency securitization, and whole-loan sale transactions. Agency securitizations consist of securitization transactions with Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and Government National Mortgage Association (GNMA) (collectively the Agencies). FNMA and FHLMC generally securitize our transferred loans into mortgage-backed securities for sale into the secondary market through special purpose entities (SPEs) they sponsor. We, as an authorized GNMA issuer/servicer, pool Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) insured loans into mortgage-backed securities for sale into the secondary market. In Non-Agency securitizations, we have transferred loans into securitization SPEs. In other instances third-party investors have purchased (in whole-loan sale transactions) and subsequently sold our loans into securitization SPEs. Third-party investors have also purchased our loans in whole-loan sale transactions. Securitization SPEs, which are legal entities that are utilized in the Agency and Non-Agency securitization transactions, are VIEs.

Our continuing involvement in the Agency securitizations, Non-Agency securitizations, and whole-loan sale transactions generally consists of servicing, repurchases of previously transferred loans and loss share arrangements, and, in limited circumstances, holding of mortgage-backed securities issued by the securitization SPEs. Refer to Note 3 Loan Sale and Servicing Activities and Variable Interest Entities in our 2010 Form 10-K for additional information regarding our continuing involvement in these transactions. In addition, further details of our repurchase and loss share obligations are contained in Note 17 Commitments and Guarantees.

Certain loans transferred to the Agencies contain removal of account provisions (ROAPs). Under these ROAPs, we hold an option to repurchase at par individual delinquent loans that meet certain criteria. When we have the unilateral ability to repurchase a delinquent loan, effective control over the loan has been regained and we recognize the loan and a corresponding liability on the balance sheet regardless of our intent to repurchase the loan. At June 30, 2011 and December 31, 2010, the balance of our ROAP asset and liability totaled $272 million and $336 million, respectively.

Certain Financial Information and Cash Flows Associated with Loan Sale and Servicing Activities

	Residential			Commercial		Home Equity
In millions	Mortgages			Mortgages (a)		Loans/Lines (b)
FINANCIAL INFORMATION - June 30, 2011
Servicing portfolio (c)		$	124,765	$	163,240	$	5,810
Carrying value of servicing assets (d)			996		592		1
Servicing advances			525		451		6
Servicing deposits			2,072		3,700		40
Repurchase and recourse obligations (e)			95		55		55
Carrying value of mortgage-backed securities held (f)			1,688		1,973
FINANCIAL INFORMATION - December 31, 2010
Servicing portfolio (c)		$	125,806	$	162,514	$	6,041
Carrying value of servicing assets (d)			1,033		665		2
Servicing advances			533		415		21
Servicing deposits			2,661		3,537		61
Repurchase and recourse obligations (e)			144		54		150
Carrying value of mortgage-backed securities held (f)			2,171		1,875

		Residential			Commercial		Home Equity
In millions		Mortgages			Mortgages (a)		Loans/Lines (b)
CASH FLOWS - Three months ended June 30, 2011
Sales of loans (g)			$	3,144	$	421
Repurchases of previously transferred loans (h)				365			$	8
Contractual servicing fees received				87		44		6
Servicing advances recovered/(funded), net				(22)		(1)
Cash flows on mortgage-backed securities held (f)				107		80
CASH FLOWS - Three months ended June 30, 2010
Sales of loans (g)			$	2,296	$	636
Repurchases of previously transferred loans (h)				465			$	6
Contractual servicing fees received				107		71		7
Servicing advances recovered/(funded), net				174		57		3
Cash flows on mortgage-backed securities held (f)				148		167
CASH FLOWS - Six months ended June 30, 2011
Sales of loans (g)			$	6,529	$	904
Repurchases of previously transferred loans (h)				809			$	30
Contractual servicing fees received				177		87		12
Servicing advances recovered/(funded), net				8		(36)		15
Cash flows on mortgage-backed securities held (f)				258		177
CASH FLOWS - Six months ended June 30, 2010
Sales of loans (g)			$	4,226	$	978
Repurchases of previously transferred loans (h)				1,206			$	7
Contractual servicing fees received				216		126		14
Servicing advances recovered/(funded), net				60		2		9
Cash flows on mortgage-backed securities held (f)				290		204
(a)	Represents financial and cash flow information associated with both commercial mortgage loan transfer and servicing activities.
(b)	These activities were part of an acquired brokered home equity business in which PNC is no longer engaged. See Note 17 Commitments and Guarantees for further information.
(c)	For our continuing involvement with residential mortgages and home equity loan/line transfers, amount represents outstanding balance of loans transferred
	and serviced. For commercial mortgages, amount represents the portion of the overall servicing portfolio in which loans have been transferred by us or third
	parties to VIEs.
(d)	See Note 8 Fair Value and Note 9 Goodwill and Other Intangible Assets for further information.
(e)	Represents liability for our loss exposure associated with loan repurchases for breaches of representations and warranties for our Residential Mortgage Banking and
	Distressed Assets Portfolio segments, and our multifamily commercial mortgage loss share arrangements for our Corporate & Institutional Banking segment.
	See Note 17 Commitments and Guarantees for further information.
(f)	Represents securities held where PNC transferred to and/or serviced loans for a securitization SPE and we hold securities issued by that SPE.
(g)	There were no gains or losses recognized on the transaction date for sales of residential mortgage and certain commercial mortgage loans as these loans are
	recognized on the balance sheet at fair value. For transfers of commercial loans not recognized on the balance sheet at fair value, gains/losses recognized on sales of
	these loans were insignificant for the periods presented.
(h)	Includes repurchases of insured loans, government guaranteed loans, and loans repurchased through the exercise of our ROAP option.

As discussed in our 2010 Form 10-K, we are involved with various entities in the normal course of business that are deemed to be VIEs. The following provides a summary of VIEs, including those that we have consolidated and those in which we hold variable interests but have not consolidated into our financial statements as of June 30, 2011 and December 31, 2010.

Consolidated VIEs – Carrying Value (a)

June 30, 2011						Credit Card			Tax Credit
In millions			Market Street			Securitization Trust			Investments (b)			Total
Assets
Cash and due from banks										$	4		$	4
Interest-earning deposits with banks											9			9
Investment securities				$	317									317
Loans					3,010		$	1,964						4,974
Allowance for loan and lease losses								(105)						(105)
Equity investments											1,332			1,332
Other assets					421			8			606			1,035
	Total assets			$	3,748		$	1,867		$	1,951		$	7,566
Liabilities
Other borrowed funds				$	3,339		$	287		$	233		$	3,859
Accrued expenses								31			98			129
Other liabilities					417						407			824
	Total liabilities			$	3,756		$	318		$	738		$	4,812

December 31, 2010						Credit Card			Tax Credit
In millions			Market Street			Securitization Trust			Investments (b)			Total
Assets
Cash and due from banks										$	2		$	2
Interest-earning deposits with banks							$	284			4			288
Investment securities				$	192									192
Loans					2,520			2,125						4,645
Allowance for loan and lease losses								(183)						(183)
Equity investments											1,177			1,177
Other assets					271			9			396			676
	Total assets			$	2,983		$	2,235		$	1,579		$	6,797
Liabilities
Other borrowed funds				$	2,715		$	523		$	116		$	3,354
Accrued expenses								9			79			88
Other liabilities					268						188			456
	Total liabilities			$	2,983		$	532		$	383		$	3,898
(a)		Amounts represent carrying value on PNC’s Consolidated Balance Sheet.
(b)		Amounts primarily represent Low Income Housing Tax Credit (LIHTC) investments.

Assets and Liabilities of Consolidated VIEs (a)

		Aggregate			Aggregate
In millions		Assets			Liabilities
June 30, 2011
Market Street			$	4,513		$	4,517
Credit Card Securitization Trust				1,902			475
Tax Credit Investments (b)				1,958			775

December 31, 2010
Market Street			$	3,584		$	3,588
Credit Card Securitization Trust				2,269			1,004
Tax Credit Investments (b)				1,590			420
(a)	Amounts in this table differ from total assets and liabilities in the preceding "Consolidated VIEs - Carrying Value" table as amounts in the preceding table reflect
	the elimination of intercompany assets and liabilities.
(b)	Amounts primarily represent LIHTC investments.

Non-Consolidated VIEs

									Carrying			Carrying
		Aggregate			Aggregate		PNC Risk		Value of			Value of
In millions		Assets			Liabilities		of Loss		Assets			Liabilities
June 30, 2011
Tax Credit Investments (a)			$	4,550	$	2,488	$	924	$	924	(c)	$	399	(d)
Commercial Mortgage-Backed Securitizations (b)				74,727		74,727		2,200		2,200	(e)
Residential Mortgage-Backed Securitizations (b)				35,729		35,729		1,712		1,710	(e)		2	(d)
Collateralized Debt Obligations				16				1		1	(c)
	Total		$	115,022	$	112,944	$	4,837	$	4,835		$	401

									Carrying			Carrying
		Aggregate			Aggregate		PNC Risk		Value of			Value of
In millions		Assets			Liabilities		of Loss		Assets			Liabilities
December 31, 2010
Tax Credit Investments (a)			$	4,086	$	2,258	$	782	$	782	(c)	$	301	(d)
Commercial Mortgage-Backed Securitizations (b)				79,142		79,142		2,068		2,068	(e)
Residential Mortgage-Backed Securitizations (b)				42,986		42,986		2,203		2,199	(e)		4	(d)
Collateralized Debt Obligations				18				1		1	(c)
	Total		$	126,232	$	124,386	$	5,054	$	5,050		$	305
(a)	Amounts primarily represent LIHTC investments. Aggregate assets and aggregate liabilities represent estimated balances due to limited availability of financial
	information associated with certain acquired partnerships.
(b)	Amounts reflect involvement with securitization SPEs where PNC transferred to and/or services loans for a SPE and we hold securities issued by that SPE.
	We also invest in other mortgage and asset-backed securities issued by third-party VIEs with which we have no continuing involvement. Further information
	on these securities is included in Note 7 Investment Securities and values disclosed represent our maximum exposure to loss for those securities’ holdings.
(c)	Included in Equity investments on our Consolidated Balance Sheet.
(d)	Included in Other liabilities on our Consolidated Balance Sheet.
(e)	Included in Trading securities, Investment securities, Other intangible assets, and Other assets on our Consolidated Balance Sheet.

Market Street Funding LLC (Market Street) is a multi-seller asset-backed commercial paper conduit that is owned by an independent third party. Market Street's activities primarily involve purchasing assets or making loans secured by interests in pools of receivables from US corporations that desire access to the commercial paper market. Market Street funds the purchases of assets or loans by issuing commercial paper and is supported by pool-specific credit enhancements, liquidity facilities and program-level credit enhancement. Generally, Market Street mitigates its potential interest rate risk by entering into agreements with its borrowers that reflect interest rates based upon its weighted average commercial paper cost of funds. During 2010 and the first six months of 2011, Market Street met all of its funding needs through the issuance of commercial paper.

PNC Bank, N.A. provides certain administrative services, the program-level credit enhancement and all of the liquidity facilities to Market Street in exchange for fees negotiated based on market rates. Through these arrangements, PNC Bank, N.A. has the power to direct the activities of the SPE that most significantly affect its economic performance and these arrangements expose PNC Bank, N.A. to expected losses or residual returns that are significant to Market Street.

The commercial paper obligations at June 30, 2011 and December 31, 2010 were supported by Market Street's assets. While PNC Bank, N.A. may be obligated to fund under the $7.2 billion of liquidity facilities for events such as commercial paper market disruptions, borrower bankruptcies, collateral deficiencies or covenant violations, our credit risk under the liquidity facilities is secondary to the risk of first loss provided by the borrower such as by the over-collateralization of the assets or by another third party in the form of deal-specific credit enhancement. Deal-specific credit enhancement that supports the commercial paper issued by Market Street is generally structured to cover a multiple of expected losses for the pool of assets and is sized to generally meet rating agency standards for comparably structured transactions. In addition, PNC Bank, N.A. would be required to fund $1.4 billion of the liquidity facilities regardless of whether the underlying assets are in default. Market Street creditors have no direct recourse to PNC Bank, N.A.

PNC Bank, N.A. provides program-level credit enhancement to cover net losses in the amount of 10% of commitments, excluding explicitly rated AAA/Aaa facilities. PNC Bank, N.A. provides 100% of the enhancement in the form of a cash collateral account funded by a loan facility. This facility expires in June 2016. At June 30, 2011, $750 million was outstanding on this facility. This amount is eliminated in PNC's Consolidated Balance Sheet as we consolidate Market Street. We are not required to nor have we provided additional financial support to the SPE.

We are the sponsor of several credit card securitizations facilitated through a trust. This bankruptcy-remote SPE or VIE was established to purchase credit card receivables from the sponsor and to issue and sell asset-backed securities created by it to independent third-parties. The SPE was financed primarily through the sale of these asset-backed securities. These transactions were originally structured as a form of liquidity and to afford favorable capital treatment. At June 30, 2011, only Series 2007-1 issued by the SPE was outstanding. Series 2006-1 and 2008-3 were paid off during the first and second quarters of 2011, respectively.

Our continuing involvement in these securitization transactions consists primarily of holding certain retained interests and acting as the primary servicer. For each securitization series, our retained interests held are in the form of a pro-rata undivided interest, or sellers' interest, in the transferred receivables, subordinated tranches of asset-backed securities, interest-only strips, discount receivables, and subordinated interests in accrued interest and fees in securitized receivables. We have consolidated the SPE as we are deemed the primary beneficiary of the entity based upon our level of continuing involvement. Our role as primary servicer gives us the power to direct the activities of the SPE that most significantly affect its economic performance and our holding of retained interests gives us the obligation to absorb or receive expected losses or residual returns that are significant to the SPE. Accordingly, all retained interests held in the credit card SPE are eliminated in consolidation. The underlying assets of the consolidated SPE are restricted only for payment of the beneficial interest issued by the SPE. We are not required to nor have we provided additional financial support to the SPE. Additionally, creditors of the SPE have no direct recourse to PNC.

We make certain equity investments in various limited partnerships or limited liability companies (LLCs) that sponsor affordable housing projects utilizing the LIHTC pursuant to Sections 42 and 47 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings and to assist us in achieving goals associated with the Community Reinvestment Act. The primary activities of the investments include the identification, development and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity. We typically invest in these partnerships as a limited partner or non-managing member. We make similar investments in other types of tax credit investments.

Also, we are a national syndicator of affordable housing equity (together with the investments described above, the LIHTC investments). In these syndication transactions, we create funds in which our subsidiaries are the general partner or managing member and sell limited partnership or non-managing member interests to third parties, and in some cases may also purchase a limited partnership or non-managing member interest in the fund and/or provide mezzanine financing to the fund. The purpose of this business is to generate income from the syndication of these funds, generate servicing fees by managing the funds, and earn tax credits to reduce our tax liability. General partner or managing member activities include selecting, evaluating, structuring, negotiating, and

closing the fund investments in operating limited partnerships or LLCs, as well as oversight of the ongoing operations of the fund portfolio.

Typically, the general partner or managing member will be the party that has the right to make decisions that will most significantly impact the economic performance of the entity. However, certain partnership or LLC agreements provide the limited partner or non-managing member the ability to remove the general partner or managing member without cause. This results in the limited partner or non-managing member being the party that has the right to make decisions that will most significantly impact the economic performance of the entity. The primary sources of losses and benefits in LIHTC investments are the tax credits, tax benefits due to passive losses on the investments, and development and operating cash flows. We have consolidated LIHTC investments in which we are the general partner or managing member and have a limited partnership interest or non-managing member interest that could potentially absorb losses or receive benefits that are significant. The assets are primarily included in Equity investments and Other assets on our Consolidated Balance Sheet with the liabilities classified in Other liabilities and third party investors' interests included in the Equity section as Noncontrolling interests. Neither creditors nor equity investors in the LIHTC investments have any recourse to our general credit. There are no terms or conditions that have required or could require us, as the primary beneficiary, to provide financial support. Also, we have not provided nor do we intend to provide financial or other support to the limited partnership or LLC that we are not contractually obligated to provide. The consolidated aggregate assets and liabilities of these LIHTC investments are provided in the Consolidated VIEs table and reflected in the “Other” business segment.

For tax credit investments in which we do not have the right to make decisions that will most significantly impact the economic performance of the entity, we are not the primary beneficiary and thus they are not consolidated. These investments are disclosed in the Non-Consolidated VIEs table. The table also reflects our maximum exposure to loss. Our maximum exposure to loss is equal to our legally binding equity commitments adjusted for recorded impairment and partnership results. We use the equity method to account for our investment in these entities with the investments reflected in Equity investments on our Consolidated Balance Sheet. In addition, we increase our recognized investments and recognize a liability for all legally binding unfunded equity commitments. These liabilities are reflected in Other liabilities on our Consolidated Balance Sheet.

In connection with each Agency and Non-Agency securitization discussed above, we evaluate each SPE utilized in these transactions for consolidation. In performing these assessments, we evaluate our level of continuing involvement in these transactions as the nature of our involvement ultimately determines whether or not we hold a variable interest and/or are the primary beneficiary of the SPE. Factors we consider in our consolidation assessment include the significance of (1) our role as servicer, (2) our holdings of mortgage-backed securities issued by the securitization SPE, and (3) the rights of third-party variable interest holders.

Our first step in our assessment is to determine whether we hold a variable interest in the securitization SPE. We hold a variable interest in an Agency and Non-Agency securitization SPE through our holding of mortgage-backed securities issued by the SPE and/or our repurchase and recourse obligations. Each SPE in which we hold a variable interest is evaluated to determine whether we are the primary beneficiary of the entity. For Agency securitization transactions, our contractual role as servicer does not give us the power to direct the activities that most significantly affect the economic performance of the SPEs. Thus, we are not the primary beneficiary of these entities. For Non-Agency securitization transactions, we would be the primary beneficiary to the extent our servicing activities give us the power to direct the activities that most significantly affect the economic performance of the SPE and we hold a more than insignificant variable interest in the entity. At June 30, 2011, our level of continuing involvement in Non-Agency securitization SPEs did not result in PNC being deemed the primary beneficiary of any of these entities. Details about the Agency and Non-Agency securitization SPEs where we hold a variable interest and are not the primary beneficiary are included in the table above. Our maximum exposure to loss as a result of our involvement with these SPEs is the carrying value of the mortgage-backed securities, servicing assets, servicing advances, and our liabilities associated with our repurchase and recourse obligations. Creditors of the securitization SPEs have no recourse to PNC's assets or general credit.