notes to consolidated financial statements j.p . morgan chase & co . 98 j.p . morgan chase & co . / 2003 annual report securities financing activities jpmorgan chase enters into resale agreements , repurchase agreements , securities borrowed transactions and securities loaned transactions primarily to finance the firm 2019s inventory positions , acquire securities to cover short positions and settle other securities obligations . the firm also enters into these transactions to accommodate customers 2019 needs . securities purchased under resale agreements ( 201cresale agreements 201d ) and securities sold under repurchase agreements ( 201crepurchase agreements 201d ) are generally treated as collateralized financing transactions and are carried on the consolidated bal- ance sheet at the amounts the securities will be subsequently sold or repurchased , plus accrued interest . where appropriate , resale and repurchase agreements with the same counterparty are reported on a net basis in accordance with fin 41 . jpmorgan chase takes possession of securities purchased under resale agreements . on a daily basis , jpmorgan chase monitors the market value of the underlying collateral received from its counterparties , consisting primarily of u.s . and non-u.s . govern- ment and agency securities , and requests additional collateral from its counterparties when necessary . similar transactions that do not meet the sfas 140 definition of a repurchase agreement are accounted for as 201cbuys 201d and 201csells 201d rather than financing transactions . these transactions are accounted for as a purchase ( sale ) of the underlying securities with a forward obligation to sell ( purchase ) the securities . the forward purchase ( sale ) obligation , a derivative , is recorded on the consolidated balance sheet at its fair value , with changes in fair value recorded in trading revenue . notional amounts of these transactions accounted for as purchases under sfas 140 were $ 15 billion and $ 8 billion at december 31 , 2003 and 2002 , respectively . notional amounts of these transactions accounted for as sales under sfas 140 were $ 8 billion and $ 13 billion at december 31 , 2003 and 2002 , respectively . based on the short-term duration of these contracts , the unrealized gain or loss is insignificant . securities borrowed and securities lent are recorded at the amount of cash collateral advanced or received . securities bor- rowed consist primarily of government and equity securities . jpmorgan chase monitors the market value of the securities borrowed and lent on a daily basis and calls for additional col- lateral when appropriate . fees received or paid are recorded in interest income or interest expense. .
do residential mortgage products have a longer past due period than other consumer products ? .
note 10 jpmorgan chase pledges certain financial instruments it owns to collateralize repurchase agreements and other securities financ- ings . pledged securities that can be sold or repledged by the secured party are identified as financial instruments owned ( pledged to various parties ) on the consolidated balance sheet . at december 31 , 2003 , the firm had received securities as col- lateral that can be repledged , delivered or otherwise used with a fair value of approximately $ 210 billion . this collateral was gen- erally obtained under resale or securities-borrowing agreements . of these securities , approximately $ 197 billion was repledged , delivered or otherwise used , generally as collateral under repur- chase agreements , securities-lending agreements or to cover short sales . notes to consolidated financial statements j.p . morgan chase & co . loans are reported at the principal amount outstanding , net of the allowance for loan losses , unearned income and any net deferred loan fees . loans held for sale are carried at the lower of aggregate cost or fair value . loans are classified as 201ctrading 201d for secondary market trading activities where positions are bought and sold to make profits from short-term movements in price . loans held for trading purposes are included in trading assets and are carried at fair value , with the gains and losses included in trading revenue . interest income is recognized using the interest method , or on a basis approximating a level rate of return over the term of the loan . nonaccrual loans are those on which the accrual of interest is discontinued . loans ( other than certain consumer loans discussed below ) are placed on nonaccrual status immediately if , in the opinion of management , full payment of principal or interest is in doubt , or when principal or interest is 90 days or more past due and collateral , if any , is insufficient to cover prin- cipal and interest . interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income . in addition , the amortization of net deferred loan fees is suspended . interest income on nonaccrual loans is recognized only to the extent it is received in cash . however , where there is doubt regarding the ultimate collectibility of loan principal , all cash thereafter received is applied to reduce the carrying value of the loan . loans are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured . consumer loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency , in accor- dance with the federal financial institutions examination council ( 201cffiec 201d ) policy . for example , credit card loans are charged off at the earlier of 180 days past due or within 60 days from receiving notification of the filing of bankruptcy . residential mortgage products are generally charged off to net realizable value at 180 days past due . other consumer products are gener- ally charged off ( to net realizable value if collateralized ) at 120 days past due . accrued interest on residential mortgage products , automobile financings and certain other consumer loans are accounted for in accordance with the nonaccrual loan policy note 11 .