NOTE 2—DISCONTINUED OPERATIONS
Shutdown of Mortgage Origination Operations of our Wholesale Mortgage Banking Unit
In the third quarter of 2007, we closed the mortgage origination operations of our wholesale mortgage banking unit, GreenPoint, which we acquired in December 2006 as part of the North Fork acquisition. The results of the wholesale banking unit have been accounted for as a discontinued operation and are therefore not included in our results from continuing operations for the years ended December 31, 2013, 2012 and 2011. We have no significant continuing involvement in these operations.
The following table summarizes the results from discontinued operations related to the closure of the mortgage origination operations of out wholesale mortgage banking unit:
Table 2.1: Results of Discontinued Operations
| Year Ended December 31, | ||||||||||||
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(Dollars in millions) |
2013 | 2012 | 2011 | |||||||||
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Non-interest expense, net |
$ | (371 | ) | $ | (343 | ) | $ | (168 | ) | |||
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Loss from discontinued operations before taxes |
(371 | ) | (343 | ) | (168 | ) | ||||||
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Income tax benefit |
(138 | ) | (126 | ) | (62 | ) | ||||||
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Loss from discontinued operations |
$ | (233 | ) | $ | (217 | ) | $ | (106 | ) | |||
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The loss from discontinued operations includes an expense of $333 million ($210 million, net of tax), $307 million ($194 million, net of tax) and $169 million ($120 million, net of tax) for 2013, 2012 and 2011, respectively, attributable to provisions for mortgage loan repurchase losses related to representations and warranties provided on loans previously sold to third parties by the wholesale mortgage banking unit. See “Note 20—Commitments, Contingencies, Guarantees, and Others” for further details.
The discontinued mortgage origination operations of our wholesale mortgage banking unit had remaining assets, which consisted primarily of income tax assets, of $370 million and $309 million as of December 31, 2013 and 2012, respectively. Liabilities, which primarily consisted of reserves for representations and warranties on loans previously sold to third parties, totaled $960 million and $644 million as of December 31, 2013 and 2012, respectively.