Troubled debt restructurings

  
THE CHARLES SCHWAB CORPORATIONNotes to Consolidated Financial Statements(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)  
A summary of bank loan-related nonperforming assets and troubled debt restructurings is as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, | 2021 |  | 2020 |
| Nonaccrual loans (1) | $ | 35  |  |  | $ | 89  |  |
| Other real estate owned (2) | 1  |  |  | 1  |  |
| Total nonperforming assets | 36  |  |  | 90  |  |
| Troubled debt restructurings | —  |  |  | 1  |  |
| Total nonperforming assets and troubled debt restructurings | $ | 36  |  |  | $ | 91  |  |

(1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in other assets on the consolidated balance sheets.  
Credit Quality  
In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following:  
•Year of origination;•Borrower FICO scores at origination (Origination FICO);•Updated borrower FICO scores (Updated FICO);•Loan-to-value (LTV) ratios at origination (Origination LTV); and•Estimated Current LTV ratios (Estimated Current LTV).  
Borrowers’ FICO scores are provided by an independent third-party credit reporting service and generally updated quarterly. The Origination LTV and Estimated Current LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is updated on a monthly basis by reference to a home price appreciation index.  
  
  
  
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