Lending Activities (Tables)

12 Months Ended

Dec. 31, 2022

Composition of Mortgages and Other Loans Receivable

The following table presents the composition of Mortgage and other loans receivable, net:


(in millions)	December 31, 2022		December 31, 2021
Commercial mortgages(a)	$	32,993	$	30,528
Residential mortgages	5,856		4,672
Life insurance policy loans	1,750		1,832
Commercial loans, other loans and notes receivable(b)	4,567		2,852
Total mortgage and other loans receivable	45,166		39,884
Allowance for credit losses(c)	(600)		(496)
Mortgage and other loans receivable, net	$	44,566	$	39,388

(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 20% and 11%, respectively, at December 31, 2022, and 22% and 10%, respectively, at December 31, 2021). The weighted average loan-to-value ratio for NY and CA was 59% and 53% at December 31, 2022, respectively, and 51% and 53% at December 31, 2021, respectively. The debt service coverage ratio for NY and CA was 2.0X and 2.1X at December 31, 2022, respectively, and 2.0X and 1.9X at December 31, 2021, respectively.

(b)Includes loans held for sale which are carried at lower cost or market, determined on an individual loan basis, and are collateralized primarily by apartments. As of December 31, 2022 and December 31, 2021, the net carrying value of these loans was $170 million and $15 million, respectively.

(c)Does not include allowance for credit losses of $60 million and $57 million at December 31, 2022 and December 31, 2021, respectively 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:


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
>1.2X	$	5,382	$	2,043	$	1,521	$	4,832	$	3,505	$	9,948	$	27,231
1.00 - 1.20X	859		734		388		343		470		1,088		3,882
<1.00X	37		—		23		52		707		1,061		1,880
Total commercial mortgages	$	6,278	$	2,777	$	1,932	$	5,227	$	4,682	$	12,097	$	32,993
December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
>1.2X	$	1,861	$	1,520	$	4,915	$	3,300	$	2,997	$	9,005	$	23,598
1.00 - 1.20X	463		810		598		1,030		88		1,684		4,673
<1.00X	—		27		71		826		—		1,333		2,257
Total commercial mortgages	$	2,324	$	2,357	$	5,584	$	5,156	$	3,085	$	12,022	$	30,528

The following table presents loan-to-value ratios(b) for commercial mortgages by year of vintage:


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
Less than 65%	$	5,270	$	2,061	$	1,515	$	3,752	$	2,666	$	9,205	$	24,469
65% to 75%	973		435		391		1,425		1,356		1,184		5,764
76% to 80%	35		43		—		—		70		218		366
Greater than 80%	—		238		26		50		590		1,490		2,394
Total commercial mortgages	$	6,278	$	2,777	$	1,932	$	5,227	$	4,682	$	12,097	$	32,993

December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
Less than 65%	$	1,859	$	1,935	$	3,912	$	4,072	$	2,384	$	8,264	$	22,426
65% to 75%	304		396		1,672		1,084		340		2,814		6,610
76% to 80%	—		—		—		—		188		259		447
Greater than 80%	161		26		—		—		173		685		1,045
Total commercial mortgages	$	2,324	$	2,357	$	5,584	$	5,156	$	3,085	$	12,022	$	30,528

(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 1.9X at December 31, 2022 and 1.9X at 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 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 59% at December 31, 2022, and 57% at December 31, 2021. The loan-to-value ratios have been updated within the last three to nine months.

The following table presents the credit quality performance indicators for commercial mortgages:


(dollars in millions)	Number of Loans	Class														Percent of Total
		Apartments		Offices		Retail		Industrial		Hotel		Others		Total(c)
December 31, 2022
Credit Quality Performance Indicator:
In good standing	599	$	13,226	$	8,470	$	3,192	$	5,417	$	1,749	$	290	$	32,344	98%
Restructured(a)	9	—		329		94		—		59		—		482		1%
90 days or less delinquent	—	—		—		—		—		—		—		—		—%
>90 days delinquent or in process of foreclosure	3	—		167		—		—		—		—		167		1%
Total(b)	611	$	13,226	$	8,966	$	3,286	$	5,417	$	1,808	$	290	$	32,993	100%
Allowance for credit losses		$	89	$	294	$	54	$	65	$	23	$	6	$	531	2	%

December 31, 2021
Credit Quality Performance Indicator:
In good standing	613	$	12,394	$	8,370	$	4,026	$	3,262	$	1,726	$	301	$	30,079	99%
Restructured(a)	7	—		269		17		—		104		—		390		1%
90 days or less delinquent	—	—		—		—		—		—		—		—		—%
>90 days delinquent or in process of foreclosure	4	—		59		—		—		—		—		59		—%
Total(b)	624	$	12,394	$	8,698	$	4,043	$	3,262	$	1,830	$	301	$	30,528	100%
Allowance for credit losses		$	93	$	193	$	69	$	39	$	23	$	6	$	423	1	%

(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 the paragraphs below.

(b) Does not reflect allowance for credit losses.

(c) Our commercial mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented.

The following table presents credit quality performance indicators for residential mortgages by year of vintage:


December 31, 2022
(in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO*:
780 and greater	$	294	$	2,141	$	652	$	229	$	76	$	437	$	3,829
720 - 779	536		711		167		75		32		134		1,655
660 - 719	163		79		28		16		9		47		342
600 - 659	2		4		2		1		2		13		24
Less than 600	—		—		—		1		—		5		6
Total residential mortgages	$	995	$	2,935	$	849	$	322	$	119	$	636	$	5,856

December 31, 2021
(in millions)	2021		2020		2019		2018		2017		Prior		Total
FICO*:
780 and greater	$	1,398	$	678	$	284	$	100	$	107	$	325	$	2,892
720 - 779	1,118		225		83		41		36		94		1,597
660 - 719	44		39		20		11		13		33		160
600 - 659	1		1		2		3		2		6		15
Less than 600	—		—		—		1		1		6		8
Total residential mortgages	$	2,561	$	943	$	389	$	156	$	159	$	464	$	4,672

* Fair Isaac Corporation (“FICO”) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and has been updated within the last three 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:*


Years Ended December 31,	2022				2021				2020
(in millions)	Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total		Commercial Mortgages		Other Loans		Total
Allowance, beginning of year	$	423	$	73	$	496	$	546	$	111	$	657	$	266	$	91	$	357
Initial allowance upon CECL adoption	—		—		—		—		—		—		272		2		274
Loans charged off	(13)		—		(13)		(1)		—		(1)		(12)		(5)		(17)

Net charge-offs	(13)		—		(13)		(1)		—		(1)		(12)		(5)		(17)
Addition to (release of) allowance for loan losses	121		(4)		117		(122)		(19)		(141)		20		23		43

Divestitures	—		—		—		—		(19)		(19)		—		—		—

Allowance, end of year	$	531	$	69	$	600	$	423	$	73	$	496	$	546	$	111	$	657

* Does not include allowance for credit losses of $60 million, $57 million and $57 million, respectively, at December 31, 2022, 2021 and 2020 in relation to the off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities in the Consolidated Balance Sheets.