On January 1, 2009, the Corporation acquired Merrill Lynch which contributed to both our consumer and commercial loans and commitments.
Acquired consumer loans consist of residential mortgages, home equity loans and lines of credit and direct/indirect and other loans.
Commercial loans were comprised of both investment and non-investment grade loans and include exposures to CMBS, monolines and leveraged finance.
Consistent with other acquisitions, we will incorporate the acquired assets into our overall credit risk management processes and enhance disclosures where appropriate.
Consumer Portfolio Credit Risk Management Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle.
Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, operating processes and metrics to quantify and balance risks and returns.
Statistical models are built using detailed behavioral information from external sources such as credit bureaus and/or internal historical experience.
These models are a component of our consumer credit risk management process and are used in part to help determine both new and existing credit decisions, portfolio management strategies including authorizations and line management, collection practices and strategies, determination of the allowance for loan and lease losses, and economic capital allocations for credit risk.
For information on our accounting policies regarding delinquencies, nonperforming status and charge-offs for the consumer portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.
Management of Consumer Credit Risk Concentrations Consumer credit risk is evaluated and managed with a goal that credit concentrations do not result in undesirable levels of risk.
We review, measure and manage credit exposure in numerous ways such as by product and geography in order to achieve the desired mix.
Additionally, credit protection is purchased on certain portions of our portfolio to enhance our overall risk management position.
The merger with Merrill Lynch will increase our concentrations to certain products and loan types.
These increases are primarily in the residential mortgage, home equity and direct/indirect portfolios.
Consumer Credit Portfolio Overall, consumer credit quality indicators deteriorated during 2008 as our customers were negatively impacted by the slowing economy.
Continued weakness in the housing markets, rising unemployment and underemployment, and tighter credit conditions resulted in rising credit risk across all our consumer portfolios.
The deterioration in the consumer credit quality indicators accelerated during the fourth quarter.
Table 15 presents our consumer loans and leases and our managed credit card portfolio, and related credit quality information.
Loans that were acquired from Countrywide that were considered impaired were written down to fair value at acquisition in accordance with SOP 03-3.
Refer to the SOP 03-3 discussion beginning on page 65 for more information.
In addition to being included in the “Outstandings” column below, these loans are also shown separately, net of purchase accounting adjustments, for increased transparency in the “SOP 03-3 Portfolio” column.
## Table 0 ##
(1) The definition of nonperforming does not include consumer credit card and consumer non-real estate loans and leases.
These loans are charged off no later than the end of the month in which the account becomes 180 days past due.
(2) Nonperforming held consumer loans and leases as a percentage of outstanding consumer loans and leases were 1.68 percent (1.81 percent excluding the SOP 03-3 portfolio) and 0.62 percent at December 31, 2008 and 2007.
(3) Balances do not include loans accounted for in accordance with SOP 03-3 even though the customer may be contractually past due.
Loans accounted for in accordance with SOP 03-3 were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.
(4) Accruing held consumer loans and leases past due 90 days or more as a percentage of outstanding consumer loans and leases were 0.73 percent (0.79 percent excluding the SOP 03-3 portfolio) and 0.57 percent at December 31, 2008 and 2007.
(5) Represents acquired loans from Countrywide that were considered impaired and written down to fair value at the acquisition date in accordance with SOP 03-3.
These amounts are included in the Outstandings column in this table.
(6) Discontinued real estate includes pay option loans and subprime loans obtained in connection with the acquisition of Countrywide.
The Corporation no longer originates these products.
(7) Outstandings include foreign consumer loans of $1.8 billion and $3.4 billion at December 31, 2008 and 2007.
(8) Outstandings include consumer finance loans of $2.6 billion and $3.0 billion, and other foreign consumer loans of $618 million and $829 million at and December 31, 2008 and 2007.  n/a = not applicable
Contractual Obligations At December 31, 2010, we were subject to certain contractual payment obligations as described in the table below:
## Table 1 ##
(1) Our long-term debt consists of both secured and unsecured debt and includes both principal and interest.
Interest expense for variable rate debt was calculated using the interest rates as of December 31, 2010.
(2) Our unsecured lines of credit consist of an operating line of credit that matures February 2013 and the line of credit of a consolidated subsidiary that matures July 2011.
Interest expense for our unsecured lines of credit was calculated using the most recent stated interest rates that were in effect.
(3) Our share of unconsolidated joint venture debt includes both principal and interest.
Interest expense for variable rate debt was calculated using the interest rate at December 31, 2010.
(4) Represents estimated remaining costs on the completion of owned development projects and third-party construction projects.
Related Party Transactions We provide property and asset management, leasing, construction and other tenant related services to unconsolidated companies in which we have equity interests.
For the years ended December 31, 2010, 2009 and 2008, respectively, we earned management fees of $7.6 million, $8.4 million and $7.8 million, leasing fees of $2.7 million, $4.2 million and $2.8 million and construction and development fees of $10.3 million, $10.2 million and $12.7 million from these companies.
We recorded these fees based on contractual terms that approximate market rates for these types of services, and we have eliminated our ownership percentages of these fees in the consolidated financial statements.
Commitments and Contingencies We have guaranteed the repayment of $95.4 million of economic development bonds issued by various municipalities in connection with certain commercial developments.
We will be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service.
Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.
We also have guaranteed the repayment of secured and unsecured loans of six of our unconsolidated subsidiaries.
At December 31, 2010, the maximum guarantee exposure for these loans was approximately $245.4 million.
With the exception of the guarantee of the debt of 3630 Peachtree joint venture, for which we recorded a contingent liability in 2009 of $36.3 million, management believes it probable that we will not be required to satisfy these guarantees.
We lease certain land positions with terms extending to December 2080, with a total obligation of $103.6 million.
No payments on these ground leases are material in any individual year.
We are subject to various legal proceedings and claims that arise in the ordinary course of business.
In the opinion of management, the amount of any ultimate liability with respect to these actions will not materially affect our consolidated financial statements or results of operations.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview – (Continued) x operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc.  (“Diamond Offshore”), a 54% owned subsidiary); x operation of hotels (Loews Hotels Holding Corporation (“Loews Hotels”), a wholly owned subsidiary) and x distribution and sale of watches and clocks (Bulova Corporation (“Bulova”), a wholly owned subsidiary).
Unless the context otherwise requires, references in this report to “Loews Corporation,” “we,” “our,” “us” or like terms refer to the business of Loews Corporation excluding its subsidiaries.
The Company restated its financial statements for the years 2001 through 2004, as well as its interim financial statements through September 30, 2005.
The restatement was to correct the accounting for discontinued operations acquired in CNA’s merger with The Continental Corporation in 1995.
A recent review of discontinued operations identified an overstatement of the net assets of these discontinued operations and errors in CNA’s accounting for the periodic results of these operations.
The Company also restated the Consolidated Statements of Cash Flows for the years ended 2004 and 2003 to correct classification errors.
Please read information on the restatements included in Note 25 of the Notes to Consolidated Financial Statements included under Item 8.
The following discussion should be read in conjunction with Item 1A, Risk Factors, of this Form 10-K.  Consolidated Financial Results Consolidated net income (including both the Loews Group and Carolina Group) for the year ended December 31, 2005 was $1,211.6 million, compared to $1,215.8 million in the prior year.
The following table summarizes the net income and earnings per share information:
## Table 2 ##
(a) Includes a loss of $352.9 (after tax and minority interest) for the year ended December 31, 2004 related to CNA’s sale of its individual life insurance business.
(b) Reflects Loews Corporation’s sales of 10,000,000 shares of Carolina Group stock in each of November of 2005 and December of 2004.
Net income per share of Carolina Group stock was not impacted by these sales.
Net income attributable to Loews common stock for the year ended 2005 amounted to $960.3 million, or $5.16 per share, compared to $1,031.3 million, or $5.56 per share, in the prior year.
The results for the year ended December 31, 2005 include a benefit of $136.5 million related to a federal income tax settlement due primarily to net refund interest and the release of federal income tax reserves, and catastrophe losses at CNA of $304.8 million (after tax and minority interest) primarily related to Hurricanes Wilma, Katrina, Rita, Dennis and Ophelia.
Net

<table><tr><td></td><td colspan="7"> December 31</td></tr><tr><td></td><td colspan="2"> Outstandings</td><td colspan="2"> Nonperforming<sup>-1, 2, 3</sup></td><td colspan="2"> Accruing Past Due 90 Days or More<sup>-3, 4</sup></td><td> SOP 03-3 Portfolio<sup>-5</sup></td></tr><tr><td>(Dollars in millions)</td><td> 2008</td><td>2007</td><td> 2008</td><td>2007</td><td> 2008</td><td>2007</td><td> 2008</td></tr><tr><td> Held basis</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>$247,999</td><td>$274,949</td><td>$7,044</td><td>$1,999</td><td>$372</td><td>$237</td><td>$9,949</td></tr><tr><td>Home equity</td><td>152,547</td><td>114,820</td><td>2,670</td><td>1,340</td><td>–</td><td>–</td><td>14,163</td></tr><tr><td>Discontinued real estate<sup>-6</sup></td><td>19,981</td><td>n/a</td><td>77</td><td>n/a</td><td>–</td><td>n/a</td><td>18,097</td></tr><tr><td>Credit card – domestic</td><td>64,128</td><td>65,774</td><td>n/a</td><td>n/a</td><td>2,197</td><td>1,855</td><td>n/a</td></tr><tr><td>Credit card – foreign</td><td>17,146</td><td>14,950</td><td>n/a</td><td>n/a</td><td>368</td><td>272</td><td>n/a</td></tr><tr><td>Direct/Indirect consumer<sup>-7</sup></td><td>83,436</td><td>76,538</td><td>26</td><td>8</td><td>1,370</td><td>745</td><td>n/a</td></tr><tr><td>Other consumer<sup>-8</sup></td><td>3,442</td><td>4,170</td><td>91</td><td>95</td><td>4</td><td>4</td><td>n/a</td></tr><tr><td> Total held</td><td>$588,679</td><td>$551,201</td><td>$9,908</td><td>$3,442</td><td>$4,311</td><td>$3,113</td><td>$42,209</td></tr><tr><td> Supplemental managed basis data</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit card – domestic</td><td>$154,151</td><td>$151,862</td><td>n/a</td><td>n/a</td><td>$5,033</td><td>$4,170</td><td>n/a</td></tr><tr><td>Credit card – foreign</td><td>28,083</td><td>31,829</td><td>n/a</td><td>n/a</td><td>717</td><td>714</td><td>n/a</td></tr><tr><td> Total credit card – managed</td><td>$182,234</td><td>$183,691</td><td>n/a</td><td>n/a</td><td>$5,750</td><td>$4,884</td><td>n/a</td></tr></table>
<table><tr><td></td><td>Payments due by Period (in thousands)</td></tr><tr><td>Contractual Obligations</td><td>Total</td><td>2011</td><td>2012</td><td>2013</td><td>2014</td><td>2015</td><td>Thereafter</td></tr><tr><td>Long-term debt -1</td><td>$5,413,606</td><td>$629,781</td><td>$548,966</td><td>$725,060</td><td>$498,912</td><td>$473,417</td><td>$2,537,470</td></tr><tr><td>Lines of credit -2</td><td>214,225</td><td>28,046</td><td>9,604</td><td>176,575</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Share of debt of unconsolidated joint ventures -3</td><td>447,573</td><td>87,602</td><td>27,169</td><td>93,663</td><td>34,854</td><td>65,847</td><td>138,438</td></tr><tr><td>Ground leases</td><td>103,563</td><td>2,199</td><td>2,198</td><td>2,169</td><td>2,192</td><td>2,202</td><td>92,603</td></tr><tr><td>Operating leases</td><td>2,704</td><td>840</td><td>419</td><td>395</td><td>380</td><td>370</td><td>300</td></tr><tr><td>Development and construction backlog costs -4</td><td>521,041</td><td>476,314</td><td>44,727</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Other</td><td>1,967</td><td>1,015</td><td>398</td><td>229</td><td>90</td><td>54</td><td>181</td></tr><tr><td>Total Contractual Obligations</td><td>$6,704,679</td><td>$1,225,797</td><td>$633,481</td><td>$998,091</td><td>$536,428</td><td>$541,890</td><td>$2,768,992</td></tr></table>
<table><tr><td>Year Ended December 31</td><td>2005</td><td rowspan="2">2004 (Restated)</td></tr><tr><td>(In millions, except per share data)</td><td></td></tr><tr><td>Net income attributable to Loews common stock:</td><td></td><td></td></tr><tr><td>Income before net investment gains (losses)</td><td>$951.9</td><td>$1,195.7</td></tr><tr><td>Net investment gains (losses) (a)</td><td>-10.3</td><td>-144.9</td></tr><tr><td>Income from continuing operations</td><td>941.6</td><td>1,050.8</td></tr><tr><td>Discontinued operations, net</td><td>18.7</td><td>-19.5</td></tr><tr><td>Net income attributable to Loews common stock</td><td>960.3</td><td>1,031.3</td></tr><tr><td>Net income attributable to Carolina Group stock (b)</td><td>251.3</td><td>184.5</td></tr><tr><td>Consolidated net income</td><td>$1,211.6</td><td>$1,215.8</td></tr><tr><td>Net income per share:</td><td></td><td></td></tr><tr><td>Loews common stock</td><td></td><td></td></tr><tr><td>Income from continuing operations</td><td>$5.06</td><td>$5.66</td></tr><tr><td>Discontinued operations, net</td><td>0.10</td><td>-0.10</td></tr><tr><td>Loews common stock</td><td>$5.16</td><td>$5.56</td></tr><tr><td>Carolina Group stock</td><td>$3.62</td><td>$3.15</td></tr></table>

Question: What is the difference between the greatest Residential mortgage in 2008 and 2007? (in million)
Answer: -26950