Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FLAGSTAR BANCORP INC | |
Entity Central Index Key | 1,033,012 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,441,157 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||
Cash | $ 65 | $ 47 |
Interest-earning deposits | 130 | 89 |
Total cash and cash equivalents | 195 | 136 |
Investment securities available-for-sale | 1,150 | 1,672 |
Investment securities held-to-maturity | 1,108 | 0 |
Loans held-for-sale ($2,164 and $1,196 measured at fair value, respectively) | 2,408 | 1,244 |
Loans with government guarantees | 509 | 1,128 |
Loans held-for-investment, net | ||
Loans held-for-investment ($132 and $211 measured at fair value, respectively) | 5,514 | 4,448 |
Less: allowance for loan losses | (197) | (297) |
Total loans held-for-investment, net | 5,317 | 4,151 |
Mortgage servicing rights | 294 | 258 |
Federal Home Loan Bank stock | 113 | 155 |
Premises and equipment, net | 243 | 238 |
Net deferred tax asset | 372 | 442 |
Other assets | 810 | 416 |
Total assets | 12,519 | 9,840 |
Deposits | ||
Noninterest bearing | 1,749 | 1,209 |
Interest bearing | 6,388 | 5,860 |
Total deposits | 8,137 | 7,069 |
Federal Home Loan Bank advances (includes both short-term and long-term) | 2,024 | 514 |
Long-term debt ($32 and $84 measured at fair value, respectively) | 279 | 331 |
Representation and warranty reserve | 45 | 53 |
Other liabilities ($84 and $82 measured at fair value, respectively) | 530 | 500 |
Total liabilities | 11,015 | 8,467 |
Stockholders’ Equity | ||
Preferred stock $0.01 par value, liquidation value $1,000 per share, 25,000,000 shares authorized; 266,657 issued and outstanding, respectively | 267 | 267 |
Common stock $0.01 par value, 70,000,000 shares authorized; 56,436,026 and 56,332,307 shares issued and outstanding, respectively | 1 | 1 |
Additional paid in capital | 1,484 | 1,482 |
Accumulated other comprehensive income | 12 | 8 |
Accumulated deficit | (260) | (385) |
Total stockholders’ equity | 1,504 | 1,373 |
Total liabilities and stockholders’ equity | $ 12,519 | $ 9,840 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Loans held-for-sale, fair value | $ 2,164 | $ 1,196 |
Loans held-for-investment, fair value | 132 | 211 |
Liabilities and Stockholders’ Equity | ||
Long-term debt, fair value | 32 | 84 |
Other liabilities, fair value | $ 84 | $ 82 |
Stockholders' Equity | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation value per share (in usd per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 266,657 | 266,657 |
Preferred stock, shares outstanding | 266,657 | 266,657 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 56,436,026 | 56,332,307 |
Common stock, shares outstanding | 56,436,026 | 56,332,307 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income | ||||
Loans | $ 77 | $ 64 | $ 216 | $ 185 |
Investment securities | 14 | 11 | 43 | 28 |
Interest-earning deposits and other | 0 | 0 | 1 | 0 |
Total interest income | 91 | 75 | 260 | 213 |
Interest Expense | ||||
Deposits | 10 | 8 | 30 | 21 |
Federal Home Loan Bank advances | 6 | 1 | 13 | 2 |
Other | 2 | 2 | 6 | 5 |
Total interest expense | 18 | 11 | 49 | 28 |
Net interest income | 73 | 64 | 211 | 185 |
(Benefit) provision for loan losses | (1) | 8 | (18) | 127 |
Net interest income after provision for loan losses | 74 | 56 | 229 | 58 |
Noninterest Income | ||||
Net gain on loan sales | 68 | 52 | 242 | 152 |
Loan fees and charges | 17 | 19 | 53 | 56 |
Deposit fees and charges | 7 | 6 | 19 | 16 |
Loan administration income | 8 | 6 | 19 | 19 |
Net return on the mortgage servicing asset | 12 | 1 | 19 | 22 |
Net gain (loss) on sale of assets | 1 | 5 | (1) | 11 |
Representation and warranty benefit (provision) | 6 | (13) | 13 | (16) |
Other noninterest income | 9 | 9 | 9 | 3 |
Total noninterest income | 128 | 85 | 373 | 263 |
Noninterest Expense | ||||
Compensation and benefits | 58 | 54 | 178 | 174 |
Commissions | 10 | 10 | 31 | 26 |
Occupancy and equipment | 20 | 20 | 60 | 60 |
Asset resolution | 0 | 14 | 13 | 43 |
Federal insurance premiums | 6 | 6 | 18 | 17 |
Loan processing expense | 14 | 10 | 40 | 26 |
Legal and professional expense | 10 | 15 | 27 | 40 |
Other noninterest expense | 13 | 50 | 40 | 53 |
Total noninterest expense | 131 | 179 | 407 | 439 |
Income (loss) before income taxes | 71 | (38) | 195 | (118) |
Provision (benefit) for income taxes | 24 | (10) | 70 | (38) |
Net income (loss) | 47 | (28) | 125 | (80) |
Preferred stock accretion | 0 | 0 | 0 | (1) |
Net income (loss) from continuing operations | $ 47 | $ (28) | $ 125 | $ (81) |
Income (loss) per share | ||||
Basic (in dollars per share) | $ 0.70 | $ (0.61) | $ 1.82 | $ (1.79) |
Diluted (in dollars per share) | $ 0.69 | $ (0.61) | $ 1.80 | $ (1.79) |
Weighted average shares outstanding | ||||
Basic (in shares) | 56,436,026 | 56,249,300 | 56,419,354 | 56,224,850 |
Diluted (in shares) | 57,207,503 | 56,249,300 | 57,050,789 | 56,224,850 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive Income (Loss) | ||||
Net income (loss) | $ 47 | $ (28) | $ 125 | $ (80) |
Unrealized gain (loss) on investment securities available-for-sale | ||||
Unrealized gain (loss) (net of ($5) and ($5) and $4 and ($1) tax effect for the three and nine months ended September 30, 2015 and 2014, respectively) | 9 | (5) | 9 | 11 |
Less: Reclassification of net loss on the sale (net of zero and zero and zero and ($4) tax effect for the three and nine months ended September 30, 2015 and 2014, respectively) | 0 | (2) | 0 | (7) |
Net change in unrealized gain (loss) on investment securities available-for-sale, net of tax | 9 | (7) | 9 | 4 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ||||
Unrealized (loss) (net of $2 and zero and zero and ($4) tax effect for the three and nine months ended September 30, 2015 respectively) | (5) | 0 | (5) | 0 |
Less: Reclassification of net loss on derivative instruments | 0 | 0 | 0 | 0 |
Net change in unrealized (loss) on derivative instruments, net of tax | (5) | 0 | (5) | 0 |
Other comprehensive income (loss), net of tax | 4 | (7) | 4 | 4 |
Comprehensive income (loss) | $ 51 | $ (35) | $ 129 | $ (76) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized Holding Gain (Loss) on Securities, Tax | $ (5) | $ 4 | $ (5) | $ (1) |
Reclassification Adjustment from AOCI for Securities, Tax | 0 | 0 | 0 | (4) |
Unrealized Gain (Loss) on Derivatives, Tax | $ 2 | $ 0 | $ 2 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2013 | $ 1,426 | $ 266 | $ 1 | $ 1,479 | $ (5) | $ (315) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (80) | (80) | ||||
Total other comprehensive income | 4 | 4 | ||||
Accretion of preferred stock | 0 | 1 | (1) | |||
Stock-based compensation | 2 | 2 | ||||
Ending balance at Sep. 30, 2014 | 1,352 | 267 | 1 | 1,481 | (1) | (396) |
Beginning balance at Dec. 31, 2014 | 1,373 | 267 | 1 | 1,482 | 8 | (385) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 125 | 125 | ||||
Total other comprehensive income | 4 | 4 | ||||
Stock-based compensation | 2 | 2 | ||||
Ending balance at Sep. 30, 2015 | $ 1,504 | $ 267 | $ 1 | $ 1,484 | $ 12 | $ (260) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income (loss) | $ 125 | $ (80) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
(Benefit) provision for loan losses | (18) | |
Representation and warranty (benefit) provision | (13) | 16 |
Depreciation and amortization | 17 | |
Deferred income taxes | 68 | |
Net gain on loan and asset sales | (241) | |
Change in fair value and other non-cash changes | (231) | |
Other changes: | ||
Proceeds from sales of loans held-for-sale (HFS) | 15,247 | |
Origination, premium paid and repurchase of loans, net of principal repayments | (22,180) | |
Increase in accrued interest receivable | (6) | |
Decrease (increase) in other assets, excludes purchase of other investments | 155 | |
Net charge-offs in representation and warranty reserve | (1) | |
Increase in other liabilities | 11 | |
Net cash used in operating activities | (7,067) | |
Investing Activities | ||
Proceeds from sale of available-for-sale securities, including loans that have been securitized | 6,603 | |
Collection of principal on investment securities available-for-sale (AFS) | 185 | |
Purchase of investment securities available-for-sale and other | (783) | |
Collection of principal on investment securities held-to-maturity (HTM) | 38 | |
Purchase of investment securities HTM | (10) | 0 |
Proceeds received from the sale of held-for-investment loans (HFI) | 788 | |
Origination and purchase of loans HFI, net of principal repayments | (2,249) | |
Purchase of bank owned life insurance | (175) | |
Proceeds from the disposition of repossessed assets | 19 | |
Redemption of Federal Home Loan Bank stock | 42 | |
Acquisitions of premises and equipment, net of proceeds | (28) | |
Proceeds from the sale of mortgage servicing rights | 183 | |
Net cash provided by investing activities | 4,613 | |
Financing Activities | ||
Net increase in deposit accounts | 1,068 | |
Proceeds from increases in Federal Home Loan Bank advances | 22,235 | |
Repayment of Federal Home Loan Bank advances | (20,725) | |
Repayment of long-term debt | (55) | |
Net (reduction) receipt of payments of loans serviced for others | (23) | |
Net receipt of escrow payments | 13 | |
Net cash provided by financing activities | 2,513 | |
Net increase (decrease) in cash and cash equivalents | 59 | |
Beginning cash and cash equivalents | 136 | |
Ending cash and cash equivalents | 195 | |
Supplemental disclosure of cash flow information | ||
Interest paid on deposits and other borrowings | 42 | |
Income tax payments (refund) | 3 | |
Non-cash reclassification of investments AFS to HTM | 1,136 | |
Non-cash reclassification of loans HFI to loans HFS | 1,113 | |
Non-cash reclassification of loans HFS to loans HFI | 30 | |
Non-cash reclassification of loans HFS to AFS securities | 6,617 | |
Mortgage servicing rights resulting from sale or securitization of loans | 220 | |
Non-cash reclassification of loans with government guarantee to other assets | $ 373 | |
As Restated | ||
Operating Activities | ||
Net income (loss) | (80) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
(Benefit) provision for loan losses | 127 | |
Representation and warranty (benefit) provision | 16 | |
Depreciation and amortization | 18 | |
Deferred income taxes | (35) | |
Net gain on loan and asset sales | (163) | |
Change in fair value and other non-cash changes | (150) | |
Other changes: | ||
Proceeds from sales of loans held-for-sale (HFS) | 12,610 | |
Origination, premium paid and repurchase of loans, net of principal repayments | (18,225) | |
Increase in accrued interest receivable | (12) | |
Decrease (increase) in other assets, excludes purchase of other investments | (82) | |
Net charge-offs in representation and warranty reserve | (18) | |
Increase in other liabilities | 35 | |
Net cash used in operating activities | (5,959) | |
Investing Activities | ||
Proceeds from sale of available-for-sale securities, including loans that have been securitized | 6,532 | |
Collection of principal on investment securities available-for-sale (AFS) | 118 | |
Purchase of investment securities available-for-sale and other | (756) | |
Collection of principal on investment securities held-to-maturity (HTM) | 0 | |
Proceeds received from the sale of held-for-investment loans (HFI) | 62 | |
Origination and purchase of loans HFI, net of principal repayments | (623) | |
Purchase of bank owned life insurance | 0 | |
Proceeds from the disposition of repossessed assets | 30 | |
Redemption of Federal Home Loan Bank stock | 0 | |
Acquisitions of premises and equipment, net of proceeds | (26) | |
Proceeds from the sale of mortgage servicing rights | 168 | |
Net cash provided by investing activities | 5,505 | |
Financing Activities | ||
Net increase in deposit accounts | 1,094 | |
Proceeds from increases in Federal Home Loan Bank advances | 13,633 | |
Repayment of Federal Home Loan Bank advances | (14,471) | |
Repayment of long-term debt | (19) | |
Net (reduction) receipt of payments of loans serviced for others | 39 | |
Net receipt of escrow payments | 4 | |
Net cash provided by financing activities | 280 | |
Net increase (decrease) in cash and cash equivalents | (174) | |
Beginning cash and cash equivalents | 281 | |
Ending cash and cash equivalents | 107 | |
Supplemental disclosure of cash flow information | ||
Interest paid on deposits and other borrowings | 23 | |
Income tax payments (refund) | (1) | |
Non-cash reclassification of investments AFS to HTM | 0 | |
Non-cash reclassification of loans HFI to loans HFS | 384 | |
Non-cash reclassification of loans HFS to loans HFI | 15 | |
Non-cash reclassification of loans HFS to AFS securities | 6,234 | |
Mortgage servicing rights resulting from sale or securitization of loans | 198 | |
Non-cash reclassification of loans with government guarantee to other assets | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements of Flagstar Bancorp, Inc. ("Flagstar" or the "Company"), including its wholly owned principal subsidiary, Flagstar Bank, FSB (the "Bank"), have been prepared using U.S. generally accepted accounting principles ("GAAP") for interim financial statements. These consolidated financial statements do not include all of the information and footnotes required by GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission. These interim financial statements are unaudited and include, in the opinion of the Company, all adjustments necessary for a fair presentation of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 , which is available on the Company’s website, at flagstar.com, and on the SEC website, at sec.gov. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities As of September 30, 2015 and December 31, 2014 , investment securities were comprised of the following. Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in millions) September 30, 2015 Available-for-sale securities Agency $ 463 $ 7 $ (1 ) $ 469 Agency-collateralized mortgage obligations 657 11 — 668 Municipal obligations 13 — — 13 Total available-for-sale securities $ 1,133 $ 18 $ (1 ) $ 1,150 Held-to-maturity securities Agency $ 445 $ 4 $ — $ 449 Agency-collateralized mortgage obligations 663 6 — 669 Total held-to-maturity securities $ 1,108 $ 10 $ — $ 1,118 December 31, 2014 (2) Available-for-sale securities Agency $ 925 $ 6 $ (2 ) $ 929 Agency-collateralized mortgage obligations 734 8 (1 ) 741 Municipal obligations 2 — — 2 Total available-for-sale securities $ 1,661 $ 14 $ (3 ) $ 1,672 (1) Includes the investment securities that were transfered to held-to-maturity at fair value. (2) The Company did not have any held-to-maturity securities at December 31, 2014. Credit related declines in the available-for-sale and held-to-maturity securities are classified as other-than-temporary impairments ("OTTI") and are reported as a separate component of noninterest income within the Consolidated Statement of Operations. An impaired investment security is considered to be other than temporary if (1) the Company intends to sell the security; (2) it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover all contractually required principal and interest payments. Available-for-sale securities Securities available-for-sale are carried at fair value, with unrealized gains reported as a component of other comprehensive income and unrealized losses reported as a component of other comprehensive income to the extent they are temporary in nature. The Company purchased $59 million and $783 million of available-for-sale securities, which included agency securities, comprised of mortgage-backed securities, collateralized mortgage and municipal obligations during the three and nine months ended September 30, 2015 , respectively. During the third quarter the Company subsequently transferred $462 million of the securities purchased during 2015 to held-to-maturity investments. The Company purchased $86 million and $762 million of available-for-sale securities, which included agency securities, comprised of mortgage-backed securities and collateralized mortgage obligations during the three and nine months ended September 30, 2014 , respectively. Gains (losses) on sales of available-for-sale securities are reported in other noninterest income in the Consolidated Statements of Operations. During both the three and nine months ended September 30, 2015 , there were no sales of available-for-sale securities except those related to loans that had been securitized for sale in the normal course of business, compared to $255 million and $314 million , respectively, in sales of available-for-sale securities, resulting in a gain of $2 million and $3 million during the three and nine months ended September 30, 2014 , respectively. Held-to-maturity securities Investment securities held-to-maturity are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method. During the third quarter 2015 , the Company transferred $1.1 billion of available-for-sale securities to held-to-maturity securities at a premium of $8 million , reflecting the Company’s intent and ability to hold those securities to maturity. Transfers of investment securities into the held-to-maturity category from the available-for-sale category are accounted for at fair value at the date of transfer. The related $ 5 million of unrealized holding gain, net of tax, that was included in the transfer is retained in other comprehensive income (loss) and is being amortized as an adjustment to interest income over the remaining life of the securities. There were no gains or losses recognized as a result of this transfer. The Company did not classify investment securities as held-to-maturity at December 31, 2014. The Company purchased $10 million of held-to-maturity securities, which included agency-collateralized mortgage obligations during both the three and nine months ended September 30, 2015 , respectively. During both the three and nine months ended September 30, 2015 , there were $25 million of maturities in held-to-maturity securities. The Company did not hold held-to-maturity securities for the three and nine months ended September 2014. The following table summarizes by duration the unrealized loss positions on investment securities: Unrealized Loss Position with Duration 12 Months and Over Unrealized Loss Position with Duration Under 12 Months Fair Value Number of Securities Unrealized Loss Fair Value Number of Securities Unrealized Loss Type of Security (Dollars in millions) September 30, 2015 Available-for-sale securities Agency $ 8 2 $ — $ 87 7 $ (1 ) Agency-collateralized mortgage obligations — — — 42 3 — Held-to-maturity securities Agency $ — — $ — $ 10 1 $ — December 31, 2014 Available-for-sale securities Agency $ 53 6 $ — $ 305 21 $ (2 ) Agency-collateralized mortgage obligations 98 10 (1 ) 38 4 — The amortized cost and estimated fair value of securities at September 30, 2015 , are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Investment Securities Available-for-Sale Investment Securities Held-to-maturity Amortized Cost Fair Value Weighted-Average Yield Amortized Cost Fair Value Weighted-Average Yield September 30, 2015 (Dollars in millions) (Dollars in millions) Due in one year or less $ — $ — — % $ — $ — — % Due after one year through five years — — — % — — — % Due after five years through 10 years 13 13 4.60 % 69 69 2.43 % Due after 10 years 1,120 1,137 2.50 % 1,039 1,049 2.44 % Total $ 1,133 $ 1,150 $ 1,108 $ 1,118 Management evaluates its securities portfolio each quarter to determine if any security is considered to be other than temporarily impaired. In making this evaluation, management considers its ability and intent to hold securities to recover current market losses. The Company did not recognize any other than temporary impairment losses on its investment securities during the third quarter or nine months ended September 2015 and 2014. |
Loans Held-for-Sale
Loans Held-for-Sale | 9 Months Ended |
Sep. 30, 2015 | |
Receivables Held-for-sale [Abstract] | |
Loans Held-for-Sale | Loans Held-for-Sale The majority of our mortgage loans originated as loans held-for-sale are sold into the secondary market on a whole loan basis or by securitizing the loans into securities. At September 30, 2015 and December 31, 2014 , loans held-for-sale totaled $2.4 billion and $1.2 billion , respectively. For the three and nine months ended September 30, 2015 , the Company reported net gain on loan sales of $68 million and $242 million , respectively, compared to $52 million and $152 million net gain on loan sales during the three and nine months ended September 30, 2014 , respectively. At September 30, 2015 and December 31, 2014 , $243 million and $48 million , respectively, of loans held-for-sale were recorded at lower of cost or fair value. The remainder of the loans in the portfolio are recorded at fair value as the Company elected the fair value option. |
Loans with Government Guarantee
Loans with Government Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans with Government Guarantees | Loans with Government Guarantees The majority of loans with government guarantees continue to be insured or guaranteed by the Federal Housing Administration. These loans earn interest at a rate based upon the 10 -year U.S. Treasury note rate at the time the underlying loan becomes delinquent, which is not paid by the FHA until claimed. At September 30, 2015 , loans with government guarantees actually repurchased totaled $509 million and were classified as loans with government guarantees. At December 31, 2014 , loans with government guarantees actually repurchased totaled $1.1 billion and were classified as loans with government guarantees. The Company adopted ASU Update No. 2014-14, Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40) in the first quarter 2015 at which time repossessed assets and the associated claims were recorded separately from the associated loans. At September 30, 2015 , repossessed assets and the associated claims recorded in other assets totaled $231 million and at December 31, 2014 repossessed assets and the associated claims were $373 million and included in loans with government guarantees. |
Loans Held-for-Investment
Loans Held-for-Investment | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans Held-for-Investment | Loans Held-for-Investment Loans held-for-investment are summarized as follows. September 30, December 31, (Dollars in millions) Consumer loans Residential first mortgage $ 2,726 $ 2,193 Second mortgage 140 149 HELOC 405 257 Other 32 31 Total consumer loans 3,303 2,630 Commercial loans Commercial real estate 707 620 Commercial and industrial 493 429 Warehouse lending 1,011 769 Total commercial loans 2,211 1,818 Total loans held-for-investment 5,514 4,448 Less allowance for loan losses (197 ) (297 ) Loans held-for-investment, net $ 5,317 $ 4,151 During the third quarter 2015, the Company transferred interest-only residential first mortgage loans with unpaid principal balances totaling $214 million to held-for-sale, which were subsequently sold in October 2015. In addition the Company transferred $19 million of nonperforming first mortgage loans to held-for-sale, which were subsequently sold at a gain on sale of $1 million during the third quarter 2015. A portion of the general allowance for loan losses associated with both of these loan sales was reduced, resulting in a $16 million reduction in the general allowance. During the second quarter 2015, the Company sold interest-only residential first mortgage loans with unpaid principal balances totaling $386 million , along with $70 million of nonperforming and troubled debt restructured first mortgage loans. A portion of the allowance for loan losses associated with these loans was reduced, resulting in a $15 million reduction in allowance. Upon a change in the Company’s intent, the loans were transferred to held-for-sale and subsequently sold resulting in a loss on sale of $1 million during the three months ended June 30, 2015 . During the first quarter 2015, the Company re-measured the specifically identified reserve relating to the troubled debt restructured loans, resulting in a $36 million reduction in reserve based on a change in expected future cash flows. During the first quarter 2015, the Company changed its intent to hold these loans for investment and instead decided to hold these loans for sale. The loans for which the intent changed had an approximate unpaid principal balance of $331 million , including approximately $291 million of troubled debt restructured residential first mortgage loans, and $30 million in specifically identified reserves at the time this intent was changed. These loans were transferred to loans held-for-sale and subsequently sold resulting in a loss on sale of less than $1 million during the first quarter 2015. During the first quarter 2014, the Company sold nonperforming, troubled debt restructured residential first mortgage and residential first mortgage jumbo loans with unpaid principal balances totaling $313 million . A portion of the allowance for loan losses associated with these loans was reduced, resulting in a $2 million reduction in allowance. Upon a change in the Company’s intent, the loans were transferred to held-for-sale and subsequently sold resulting in a gain on sale of $1 million . During the second quarter 2014, the Company sold nonperforming, troubled debt restructured residential first mortgage and residential first mortgage jumbo loans with unpaid principal balances totaling $234 million . Upon a change in the Company’s intent, the loans were transferred to held-for-sale and subsequently sold resulting in a gain on sale of $4 million . During the third quarter 2014, the Company sold nonperforming, troubled debt restructured residential first mortgage and residential first mortgage jumbo loans with unpaid principal balances totaling $81 million . A portion of the allowance for loan losses associated with these loans was reduced, resulting in a $5 million reduction in allowance. Upon a change in the Company’s intent, the loans were transferred to held-for-sale and subsequently sold resulting in a gain on sale of $5 million . During the first and second quarter of 2015 , the Company purchased $197 million of HELOC loans with a premium of $7 million . The Company has pledged certain loans held-for-investment, loans held-for-sale, and loans with government guarantees to collateralize lines of credit and/or borrowings with the Federal Reserve Bank of Chicago and the Federal Home Loan Bank of Indianapolis. At September 30, 2015 and December 31, 2014 , the Company pledged $5.2 billion and $4.1 billion , respectively. The allowance for loan losses by class of loan are summarized in the following table. Residential First Mortgage Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) Three Months Ended September 30, 2015 Beginning balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 Charge-offs (1) (21 ) (1 ) (1 ) (1 ) — (3 ) — (27 ) Recoveries 1 1 — 1 — — — 3 Provision (benefit) (2 ) (1 ) (1 ) — (2 ) 5 — (1 ) Ending balance allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 Three Months Ended September 30, 2014 Beginning balance allowance for loan losses $ 249 $ 14 $ 14 $ 2 $ 19 $ 5 $ 3 $ 306 Charge-offs (1) (12 ) (1 ) (1 ) (1 ) — — — (15 ) Recoveries 1 — — 1 — — — 2 Provision (benefit) 2 (1 ) 6 — 2 — (1 ) 8 Ending balance allowance for loan losses $ 240 $ 12 $ 19 $ 2 $ 21 $ 5 $ 2 $ 301 Nine Months Ended September 30, 2015 Beginning balance allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 Charge-offs (1) (80 ) (2 ) (2 ) (3 ) — (3 ) — (90 ) Recoveries 3 1 — 2 2 — — 8 Provision (benefit) (28 ) 2 6 1 (6 ) 6 1 (18 ) Ending balance allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 Nine Months Ended September 30, 2014 Beginning balance allowance for loan losses $ 162 $ 12 $ 8 $ 2 $ 19 $ 3 $ 1 $ 207 Charge-offs (1) (29 ) (3 ) (5 ) (2 ) (2 ) — — (41 ) Recoveries 3 — — 2 3 — — 8 Provision (benefit) 104 3 16 — 1 2 1 127 Ending balance allowance for loan losses $ 240 $ 12 $ 19 $ 2 $ 21 $ 5 $ 2 $ 301 (1) Includes charge-offs of $16 million and $6 million related to the sale or transfer of loans during the three months ended September 30, 2015 and September 30, 2014 , respectively, and $67 million and $8 million related to the sale or transfer of loans during the nine months ended September 30, 2015 and September 30, 2014 , respectively. The loans held-for-investment and allowance for loan losses by class of loan is summarized in the following table. Residential First Mortgage Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) September 30, 2015 Loans held-for-investment Individually evaluated $ 77 $ 29 $ 3 $ — $ — $ 3 $ — $ 112 Collectively evaluated (1) 2,642 66 322 32 707 490 1,011 5,270 Total loans $ 2,719 $ 95 $ 325 $ 32 $ 707 $ 493 $ 1,011 $ 5,382 Allowance for loan losses Individually evaluated $ 21 $ 7 $ 1 $ — $ — $ — $ — $ 29 Collectively evaluated (1) 108 6 22 1 13 14 4 168 Total allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 December 31, 2014 Loans held-for-investment Individually evaluated $ 385 $ 31 $ 1 $ — $ — $ — $ — $ 417 Collectively evaluated (1) 1,782 65 124 31 620 429 769 3,820 Total loans $ 2,167 $ 96 $ 125 $ 31 $ 620 $ 429 $ 769 $ 4,237 Allowance for loan losses Individually evaluated $ 82 $ 5 $ 1 $ — $ — $ — $ — $ 88 Collectively evaluated (1) 152 7 18 1 17 11 3 209 Total allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 (1) Excludes loans carried under the fair value option. The allowance for loan losses, other than for loans that have been identified for individual evaluation for impairment, is determined on a loan pool basis by grouping loan types with similar risk characteristics to determine the Company's best estimate of incurred losses. Management evaluates the results of the allowance for loan losses model and makes qualitative adjustments to the results of the model when it is determined that model results do not reflect all losses inherent in the loan portfolios due to changes in recent economic trends and conditions, or other relevant factors. For those loans not individually evaluated for impairment, management has categorized the commercial and consumer loans into portfolios with common risk characteristics. The following table sets forth the loans held-for-investment aging analysis as of September 30, 2015 and December 31, 2014 , of past due and current loans. 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due (1) Total Past Due Current Total Investment Loans (Dollars in millions) September 30, 2015 Consumer loans Residential first mortgage $ 8 $ 5 $ 51 $ 64 $ 2,662 $ 2,726 Second mortgage 1 — 1 2 138 140 HELOC 4 3 7 14 391 405 Other — — 1 1 31 32 Total consumer loans 13 8 60 81 3,222 3,303 Commercial loans Commercial real estate — — — — 707 707 Commercial and industrial — — 3 3 490 493 Warehouse lending — — — — 1,011 1,011 Total commercial loans — — 3 3 2,208 2,211 Total loans (2) $ 13 $ 8 $ 63 $ 84 $ 5,430 $ 5,514 December 31, 2014 Consumer loans Residential first mortgage $ 29 $ 8 $ 115 $ 152 $ 2,041 $ 2,193 Second mortgage 1 1 2 4 145 149 HELOC 4 1 3 8 249 257 Other — — — — 31 31 Total consumer loans 34 10 120 164 2,466 2,630 Commercial loans Commercial real estate — — — — 620 620 Commercial and industrial — — — — 429 429 Warehouse lending — — — — 769 769 Total commercial loans — — — — 1,818 1,818 Total loans (2) $ 34 $ 10 $ 120 $ 164 $ 4,284 $ 4,448 (1) Includes performing nonaccrual loans that are less than 90 days delinquent and for which interest can not be accrued. (2) Includes $9 million and $5 million of loans 90 days or greater past due accounted for under the fair value option at September 30, 2015 and December 31, 2014 , respectively. For all classes within the consumer and commercial loan portfolio, loans are placed on nonaccrual status when any portion of principal or interest is 90 days past due (or nonperforming), or earlier when the Company becomes aware of information indicating that collection of principal and interest is in doubt. When a loan is placed on nonaccrual status, the accrued interest income is reversed. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Loans held-for-investment and loans held-for-sale on which interest accruals have been discontinued totaled approximately $77 million and $135 million at September 30, 2015 and December 31, 2014 , respectively, and $122 million at September 30, 2014 . Interest income is recognized on impaired loans using a modified cost recovery method. Interest that would have been accrued on impaired loans totaled approximately $1 million and $4 million during the three and nine months ended September 30, 2015 , respectively, and $2 million and $4 million during the three and nine months ended September 30, 2014 , respectively. At September 30, 2015 and December 31, 2014 , the Company had no loans 90 days past due and still accruing. Troubled Debt Restructuring The Company may modify certain loans in both consumer and commercial loan portfolios to retain customers or to maximize collection of the outstanding loan balance. The Company has programs designed to assist borrowers by extending payment dates or reducing the borrower's contractual payments. All loan modifications are made on a case-by-case basis. The Company's standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. TDRs result in those instances in which a borrower demonstrates financial difficulty and for which a concession has been granted, which includes reductions of interest rate, extensions of amortization period, principal and/or interest forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. These loans are classified as nonperforming TDRs if the loan was nonperforming prior to the restructuring, or based upon the results of a collateral credit evaluation. Such loans will continue on nonaccrual status until the borrower has established a willingness and ability to make the restructured payments for at least six months, after which they will begin to accrue interest. The following table provides a summary of TDRs outstanding by type and performing status. TDRs Performing Nonperforming Total September 30, 2015 (Dollars in millions) Consumer loans Residential first mortgage $ 41 $ 20 $ 61 Second mortgage 34 1 35 HELOC 22 5 27 Total consumer loans 97 26 123 Commercial loans Commercial real estate — — — Commercial and industrial — — — Total commercial loans — — — Total TDRs (1)(2) $ 97 $ 26 $ 123 December 31, 2014 Consumer loans Residential first mortgage $ 306 $ 44 $ 350 Second mortgage 35 1 36 HELOC 20 1 21 Total consumer loans 361 46 407 Commercial loans Commercial real estate 1 — 1 Total TDRs (1)(2) $ 362 $ 46 $ 408 (1) The allowance for loan losses on consumer TDR loans totaled $16 million and $81 million at September 30, 2015 and December 31, 2014 , respectively. (2) Includes $31 million and $30 million of TDR loans accounted for under the fair value option at September 30, 2015 and December 31, 2014 , respectively. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, but may give rise to potential incremental losses. The Company measures impairment using the discounted cash flow method for performing TDRs and measures impairment based on collateral values for re-defaulted TDRs. The following table provides a summary of newly modified TDRs and TDR loans that subsequently defaulted in the previous 12 months during the three and nine months ended September 30, 2015 and 2014 . All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due. Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) Increase (Decrease) in Allowance at Modification Three Months Ended September 30, 2015 (Dollars in millions) Residential first mortgages 48 $ 13 $ 14 $ — Second mortgages 15 1 1 — HELOC (2) 46 4 4 — Total TDR loans 109 $ 18 $ 19 $ — Three Months Ended September 30, 2014 Residential first mortgages 36 $ 11 $ 11 $ 1 Second mortgages 85 3 3 — HELOC (2) 4 — — — Total TDR loans 125 $ 14 $ 14 $ 1 Nine Months Ended September 30, 2015 Residential first mortgages 239 $ 66 $ 65 $ (1 ) Second mortgages 83 4 3 — HELOC (2) 204 12 11 — Consumer 3 — — — Total TDR loans 529 $ 82 $ 79 $ (1 ) Nine Months Ended September 30, 2014 Residential first mortgages 107 $ 31 $ 30 $ 2 Second mortgages 291 9 9 — HELOC (2) 19 1 — — Total TDR loans 417 $ 41 $ 39 $ 2 TDRs that subsequently defaulted in previous 12 months Number of Accounts Unpaid Principal Balance Increase in Allowance at Subsequent Default Three Months Ended September 30, 2015 (Dollars in millions) Residential first mortgages 1 $ — $ — Total TDR loans 1 $ — $ — Three Months Ended September 30, 2014 Second mortgages 2 $ — $ — Total TDR loans 2 $ — $ — Nine Months Ended September 30, 2015 Residential first mortgages 1 $ — $ — Second mortgages 1 — — Total TDR loans 2 $ — $ — Nine Months Ended September 30, 2014 Residential first mortgages 2 $ — $ — Second mortgages 15 — — HELOC (2) 5 — — Total TDR loans 22 $ — $ — (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) HELOC post-modification unpaid principal balance reflects write downs. The following table presents impaired loans and the associated allowance: September 30, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in millions) With no related allowance recorded Consumer loans Residential first mortgage loans $ 6 $ 6 $ — $ 63 $ 78 $ — Second mortgage — — — 1 6 — HELOC — — — — 1 — Commercial loans Commercial and industrial 3 6 — — — — $ 9 $ 12 $ — $ 64 $ 85 $ — With an allowance recorded Consumer loans Residential first mortgage $ 70 $ 71 $ 22 $ 321 $ 326 $ 82 Second mortgage 29 29 7 29 29 6 HELOC 3 3 1 1 1 1 $ 102 $ 103 $ 30 $ 351 $ 356 $ 89 Total Consumer loans Residential first mortgage $ 76 $ 77 $ 22 $ 384 $ 404 $ 82 Second mortgage 29 29 7 30 35 6 HELOC 3 3 1 1 2 1 Commercial loans Commercial and industrial 3 6 — — — — Total impaired loans $ 111 $ 115 $ 30 $ 415 $ 441 $ 89 The following table presents average impaired loans and the interest income recognized: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in millions) Consumer loans Residential first mortgage $ 96 $ 1 $ 406 $ 3 $ 172 $ 4 $ 408 $ 8 Second mortgage 29 — 30 — 30 — 28 1 HELOC 15 — 1 — 6 — 1 — Commercial loans Commercial real estate — — — — — — 1 — Commercial and industrial 2 — — — 1 — — — Total impaired loans $ 142 $ 1 $ 437 $ 3 $ 209 $ 4 $ 438 $ 9 Credit Quality The Company utilizes an internal risk rating system in accordance with the Rating Credit Risk booklet of the Comptroller's Handbook, April 2011 and the Uniform Retail Credit classification and Account Management Policy issued June 20, 2000 by the Federal Financial Institution Examination Council (FFIEC) which is applied to all consumer and commercial loans. Commercial credits are classified using a risk-based approach by assigning a risk rating individually to each loan. Management conducts periodic examinations which serve as an independent verification of the accuracy of the ratings assigned. Loan grades are based on different factors within the borrowing relationship: entity sales, debt service coverage, debt/total net worth, liquidity, balance sheet and income statement trends, management experience, business stability, financing structure of the deal, and financial reporting requirements. The underlying collateral is also rated based on the specific type of collateral and corresponding LTV. The combination of the borrower and collateral risk ratings result in the final rating for the borrowing relationship. Descriptions of the Company's internal risk ratings as they relate to credit quality follow the ratings used by the U.S. bank regulatory agencies as listed below. Pass. Pass assets are not impaired nor do they have any known deficiencies that could impact the quality of the asset. Watch. Watch assets are defined as pass rated assets that exhibit elevated risk characteristics or other factors that deserve management’s close attention and increased monitoring. However, the asset does not exhibit a potential or well-defined weakness that would warrant a downgrade to criticized or adverse classification. Special mention. Assets identified as special mention possess credit deficiencies or potential weaknesses deserving management's close attention. Special mention assets have a potential weakness or pose an unwarranted financial risk that, if not corrected, could weaken the assets and increase risk in the future. Special mention assets are criticized, but do not expose an institution to sufficient risk to warrant adverse classification. Substandard . Assets identified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. For HELOC loans and other consumer loans, the Company evaluates credit quality based on the aging and status of payment activity and includes all nonperforming loans. Doubtful . An asset classified as doubtful has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. A doubtful asset has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral, and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Because of high probability of loss, non-accrual accounting treatment is required for doubtful assets. Commercial Loans Management conducts periodic examinations which serve as an independent verification of the accuracy of the ratings assigned. Loan grades are based on different factors within the borrowing relationship: entity sales, debt service coverage, debt/total net worth, liquidity, balance sheet and income statement trends, management experience, business stability, financing structure of the deal, and financial reporting requirements. The underlying collateral is also rated based on the specific type of collateral and corresponding LTV. The combination of the borrower and collateral risk ratings result in the final rating for the borrowing relationship. Consumer Loans The same rating principles are used for consumer and commercial loans, but the principles are applied differently for consumer loans. Consumer loans consists of open and closed end loans extended to individuals for household, family, and other personal expenditures, and includes consumer loans, loans to individuals secured by their personal residence, including first mortgage, home equity, and home improvement loans. Because consumer loans are usually relatively small-balance, homogeneous exposures, consumer loans are rated primarily on payment performance. Payment performance is a proxy for the strength of repayment capacity and loans are generally classified based on their payment status rather than by an individual review of each loan. In accordance with regulatory guidance, the Company assigns risk ratings to consumer loans in the following manner: • Consumer loans are classified as Watch once the loan becomes 60 days past due. • Open and closed-end consumer loans 90 days or more past due are classified Substandard. Commercial Credit Loans Commercial Real Estate Commercial and Industrial Warehouse Total Commercial September 30, 2015 (Dollars in millions) Grade Pass $ 659 $ 445 $ 921 $ 2,025 Watch 43 19 76 138 Special mention 5 7 11 23 Substandard — 19 3 22 Doubtful — 3 — 3 Total loans $ 707 $ 493 $ 1,011 $ 2,211 December 31, 2014 Pass $ 578 $ 398 $ 650 $ 1,626 Watch 29 10 119 158 Special mention 2 — — 2 Substandard 11 21 — 32 Total loans $ 620 $ 429 $ 769 $ 1,818 Consumer Credit Loans Residential First Mortgage Second Mortgage HELOC Other Consumer Total September 30, 2015 (Dollars in millions) Grade Pass $ 2,625 $ 104 $ 374 $ 32 $ 3,135 Watch 44 34 24 — 102 Substandard 57 2 7 — 66 Total loans $ 2,726 $ 140 $ 405 $ 32 $ 3,303 December 31, 2014 Pass $ 1,764 $ 111 $ 233 $ 31 $ 2,139 Watch 314 36 21 — 371 Substandard 115 2 3 — 120 Total loans $ 2,193 $ 149 $ 257 $ 31 $ 2,630 |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities ("VIEs") Due to the Assured Settlement Agreement in 2013, the Company became the primary beneficiary and reconsolidated the FSTAR 2005-1 and the FSTAR 2006-2 HELOC securitization trust's assets and liabilities. The Company had elected the fair value option for these assets and liabilities. In June 2015, the Company executed a clean-up call of the FSTAR 2005-1 long-term debt associated with the HELOC securitization trust. The transaction resulted in a cash payment of $24 million to the debt bondholders. After payment of the debt, the FSTAR 2005-1 HELOC securitization trust has been dissolved as of second quarter 2015. The Company initiated the clean-up call process with respect to the 2006-2 HELOC securitization trust, which the Company expects to complete in the fourth quarter 2015. The Company continues to consolidate the VIE, which consists of the HELOC securitization trust formed in 2006. The Company has determined the trust is a VIE and has concluded that the Company is the primary beneficiary of this trust because it has the power to direct the activities of the entity that most significantly affect the entity's economic performance and has either the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. The beneficial owners of the trust can look only to the assets of the securitization trust for satisfaction of the debt issued by the securitization trust. The following table provides a summary of the classifications of consolidated VIE assets and liabilities included in the Consolidated Financial Statements. 2005-1 2006-2 Total September 30, 2015 (Dollars in millions) HELOC Securitizations Assets Loans held-for-investment $ — $ 57 $ 57 Liabilities Long-term debt $ — $ 32 $ 32 2005-1 2006-2 Total December 31, 2014 (Dollars in millions) HELOC Securitizations Assets Loans held-for-investment $ 63 $ 69 $ 132 Liabilities Long-term debt $ 42 $ 42 $ 84 The economic performance of the VIE is most significantly impacted by the performance of the underlying loans. The principal risks to which the entities were exposed include credit risk and interest-rate risk. FSTAR 2007-1 mortgage securitization trust is an unconsolidated VIE. The Company has a continuing involvement, but is not the primary beneficiary and de-recognized the assets upon transfer. In accordance with the settlement agreement with MBIA, there is no further recourse to the Company related to FSTAR 2007-1. At September 30, 2015 and December 31, 2014 , the FSTAR 2007-1 mortgage securitization trust included 3,215 loans and 3,624 loans, respectively, with an aggregate principal balance of $124 million and $141 million , respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company has investments in mortgage servicing rights ("MSRs") to support mortgage strategies and to deploy capital at acceptable returns. The Company also utilizes derivatives as economic hedges to offset changes in the fair value of the MSRs resulting from the actual or anticipated changes in prepayments stemming from changing interest rate environments. The Company's portfolio of MSRs is highly sensitive to movements in interest rates. The primary risk associated with MSRs is the potential change in value as a result of higher than anticipated prepayments due to loan refinancing prompted, in part, by declining interest rates or government intervention. Conversely, these assets generally increase in value in a rising interest rate environment to the extent that prepayments are slower than anticipated. There is also a risk of valuation decline due to higher than expected increases in default rates, which the Company does not believe can be effectively hedged. See Note 8 of the Notes to the Consolidated Financial Statements, herein, for additional information regarding the instruments utilized to hedge the risks of MSRs. Changes in the carrying value of residential first mortgage MSRs, accounted for at fair value, were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Balance at beginning of period $ 317 $ 289 $ 258 $ 285 Additions from loans sold with servicing retained 74 79 220 199 Reductions from sales (73 ) (68 ) (144 ) (161 ) Changes in fair value due to (1) Decrease in MSR due to pay-offs, pay-downs and run-off (9 ) (10 ) (34 ) (22 ) Changes in valuation inputs or assumptions (2) (15 ) (5 ) (6 ) (16 ) Fair value of MSRs at end of period $ 294 $ 285 $ 294 $ 285 (1) Changes in fair value are included within net return on mortgage servicing asset on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes in interest rates. See Note 17 of the Notes to the Consolidated Financial Statements, herein, for additional fair value disclosures relating to mortgage servicing rights. The following table summarizes income and fees associated with the mortgage servicing asset. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Income on mortgage servicing asset Servicing fees, ancillary income and late fees (1) $ 18 $ 17 $ 52 $ 50 Fair value adjustments (2) (24 ) (15 ) (38 ) (38 ) Gain on hedging activity (3) 15 — 10 10 Net transaction costs 3 (1 ) (5 ) — Total income on mortgage servicing asset, included in net return on mortgage servicing asset $ 12 $ 1 $ 19 $ 22 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Includes a $2 million gain related to the sale of MSRs during the nine months ended September 30, 2015 . (3) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. Contractual servicing and subservicing fees . Contractual servicing and subservicing fees, including late fees and other ancillary income, for each type of loan serviced are presented below. Contractual servicing fees are included within net return on mortgage servicing asset on the Consolidated Statements of Operations. Contractual subservicing fees including late fees and other ancillary income are included within loan administration income on the Consolidated Statements of Operations. Subservicing fee income is recorded for fees earned, net of third-party subservicing costs, for loans subserviced. The following table summarizes income and fees associated with the mortgage loans subserviced. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 8 $ 7 $ 24 $ 21 Other servicing charges — (1 ) (5 ) (2 ) Total income on mortgage loans subserviced, included in loan administration $ 8 $ 6 $ 19 $ 19 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on cash basis. The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10 percent and 20 percent to the weighted-average of certain significant assumptions used in valuing these assets. September 30, 2015 December 31, 2014 Fair value due to Fair value due to Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 8.68 % $ 285 $ 276 8.88 % $ 250 $ 243 Constant prepayment rate 13.27 % 283 272 14.98 % 253 245 Weighted average cost to service per loan $ 73.48 290 286 $ 74.49 258 255 The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. To isolate the effect of the specified change, the fair value shock analysis is consistent with the identified adverse change, while holding all other assumptions impacting the fair value constant on the fair value of the servicing rights. In practice, a change in one assumption generally impacts other assumptions, which may either magnify or counteract the effect of the change. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recorded at fair value in other assets and other liabilities on the Consolidated Statements of Financial Condition after taking into account the effects of legally enforceable bilateral collateral and master netting agreements. The Company is exposed to non-performance risk by the counterparties to its various derivative financial instruments. The Company believes that the credit risk inherent in all its derivative contracts is minimal based on credit standards and the netting and collateral provisions of the interest rate swap agreements. Derivatives not designated as hedging instruments: The Company maintains a derivative portfolio of interest rate swaps, futures and forward commitments used to manage exposure to changes in interest rates, MSR asset values and to meet the needs of customers. The Company also enters into interest rate lock commitments, which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Market risk on interest rate lock commitments and mortgage loans held-for-sale is managed using corresponding forward sale commitments. Changes in fair value of derivatives not designated as hedging instruments are recognized in the Consolidated Statements of Income. Derivatives designated as hedging instruments: The Company uses interest rate swaps to hedge the forecasted cash flows from its underlying variable-rate Federal Home Loan Bank (FHLB) advances in a qualifying cash flow hedge accounting relationship. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income on the Consolidated Statement of Financial Condition and reclassified into interest expense in the same period in which the hedge transaction is realized into earnings. At September 30, 2015 , the Company had $5 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared to zero at December 31, 2014 . The estimated amount to be reclassified from other comprehensive income into earnings during the remainder of 2015 and the next 12 months represents gains of less than $1 million (net-of-tax) and $3 million of losses (net-of-tax), respectively. All cash flow hedges were highly effective as of September 30, 2015 . Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item. The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Location of Gain/(Loss) 2015 2014 2015 2014 (Dollars in millions) Derivatives not designated as hedging instruments: U.S. Treasury and euro dollars futures Net return on mortgage servicing asset $ 3 $ — $ 6 $ 6 Swap futures Net return on mortgage servicing asset 10 — 2 — Mortgage backed securities forwards Net return on mortgage servicing asset 2 — 2 4 Rate lock commitments and forward agency and loan sales Net gain on loan sales (24 ) (1 ) (4 ) (8 ) Rate lock commitments Other noninterest income 1 — (1 ) — Interest rate swaps Other noninterest income 2 1 2 2 Total derivative (loss) gain $ (6 ) $ — $ 7 $ 4 The notional amount, estimated fair value and maturity of our derivative financial instruments were as follows: Notional Amount Fair Value Expiration Dates (Dollars in millions) September 30, 2015 Derivatives designated as hedging instruments: Liabilities (2) Interest rate swaps on FHLB advances $ 225 $ 8 2025 Derivatives not designated as hedging instruments: Assets (1) U.S. Treasury and euro dollar futures $ 232 $ 2 2015-2019 Mortgage backed securities forwards 173 2 2015 Swap futures 179 3 2028-2045 Rate lock commitments 4,234 44 2015 Forward agency and loan sales 69 1 2015 Interest rate swaps and swaptions 769 15 2016-2033 Total derivative assets $ 5,656 $ 67 Liabilities (2) U.S. Treasury and euro dollar futures $ 1,793 $ 2 2015-2020 Mortgage backed securities forwards 10 — 2015 Swap futures 26 1 2022 Rate lock commitments 41 — 2015 Forward agency and loan sales 4,150 29 2015 Interest rate swaps 399 10 2016-2025 Total derivative liabilities $ 6,419 $ 42 December 31, 2014 Derivatives not designated as hedging instruments: Assets (1) Mortgage servicing rights U.S. Treasury and euro dollar futures $ 2,530 $ 7 2015-2020 Mortgage backed securities forwards 161 2 2015 Rate lock commitments 2,604 31 2015 Forward agency and loan sales 194 — 2015 Interest rate swaps 355 6 2015-2021 Total derivative assets $ 5,844 $ 46 Liabilities (2) Mortgage servicing rights U.S. Treasury and euro dollar futures $ 687 $ 1 2015-2020 Rate lock commitments 22 — 2015 Forward agency and loan sales 2,789 13 2015 Interest rate swaps 367 6 2015-2021 Total derivative liabilities $ 3,865 $ 20 (1) Derivative assets are included in other assets on the Consolidated Statements of Financial Condition. (2) Derivatives liabilities are included in other liabilities on the Consolidated Statements of Financial Condition. The following tables present the derivatives subject to a master netting arrangement. Gross Amounts Not Offset in the Statement of Financial Position Gross Amount Gross Amounts Offset in the Statement of Financial Position Net Amount Presented in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (1) (Dollars in millions) September 30, 2015 Derivatives designated as hedging instruments: Liabilities Interest Rate Swaps on FHLB advances $ — $ — $ — $ — $ (8 ) $ 8 Derivatives not designated as hedging instruments: Assets Swap futures $ 6 $ — $ 6 $ — $ 3 $ 3 U.S. Treasury swap and euro dollar futures — 2 (2 ) — (2 ) — Mortgage backed securities forwards 37 — 37 — 35 2 Interest rate swaps and swaptions 17 — 17 — 2 15 Total derivative assets $ 60 $ 2 $ 58 $ — $ 38 $ 20 Liabilities Swap Futures $ 1 $ — $ 1 $ — $ — $ 1 Interest rate swaps and swaptions 18 — 18 — 8 10 Total derivative liabilities $ 19 $ — $ 19 $ — $ 8 $ 11 December 31, 2014 Derivatives not designated as hedging instruments: Assets U.S. Treasury swap and euro dollar futures $ 18 $ 1 $ 17 $ — $ 10 $ 7 Mortgage backed securities forwards 26 — 26 — 24 2 Interest rate swaps 8 — 8 — 2 6 Total derivative assets $ 52 $ 1 $ 51 $ — $ 36 $ 15 Liabilities Interest rate swaps $ 6 $ — $ 6 $ — $ — $ 6 (1) Includes gross amounts for items not netted in the Company's Consolidated Statements of Financial Condition. The Company pledged a total of $48 million of cash collateral to counterparties and had an obligation to return cash of $10 million at September 30, 2015 for derivative activities. The Company pledged a total of $36 million of investment securities and cash collateral to counterparties at December 31, 2014 for derivative activities. The net cash pledged is restricted and is included in other assets on the Consolidated Statements of Financial Condition. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2015 | |
Advances from Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | Federal Home Loan Bank Advances The portfolio of Federal Home Loan Bank advances includes short-term fixed rate advances and long-term fixed rate advances. The following is a breakdown of the advances outstanding. September 30, 2015 December 31, 2014 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 824 0.18 % $ 214 0.26 % LIBOR adjustable advances long-term 225 0.46 % — — % Long-term fixed rate term advances 975 1.54 % 300 1.36 % Total $ 2,024 0.86 % $ 514 0.90 % At September 30, 2015 , the Company had the authority and approval from the Federal Home Loan Bank to utilize a line of credit of up to $7.0 billion and the Company may access that line to the extent that collateral is provided. At September 30, 2015 , the Company had $2.0 billion of advances outstanding and an additional $1.6 billion of collateralized borrowing capacity available at Federal Home Loan Bank. The advances can be collateralized by non-delinquent single-family residential first mortgage loans, loans with government guarantees, certain other loans and investment securities. At September 30, 2015 , $225 million of the outstanding advances were adjustable rate based on the three month LIBOR index. Interest rates on these advances reset every three months and the advances may be prepaid without penalty, with notification at scheduled three month intervals after an initial 12 month lockout period. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Maximum outstanding at any month end $ 2,127 $ 1,000 $ 2,198 $ 1,300 Average outstanding balance 1,795 998 1,597 995 Average remaining borrowing capacity 1,738 2,026 1,711 1,832 Weighted-average interest rate 1.17 % 0.23 % 1.05 % 0.23 % The following outlines the Company’s Federal Home Loan Bank advance final maturity dates as of September 30, 2015 . September 30, 2015 (Dollars in millions) 2015 $ 824 2016 175 2017 50 2018 125 Thereafter 850 Total $ 2,024 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company sponsored nine trust subsidiaries, including the consolidated VIEs, which issued trust preferred securities to third-party investors and loaned the proceeds to the Company in the form of junior subordinated notes included in long-term debt. The notes held by each trust are the sole assets of that trust. Distributions on the trust preferred securities of each trust are payable quarterly at a rate equal to the interest being earned by the trust on the notes held by these trusts. The following table presents the carrying value on each junior subordinated note and VIE, along with the related interest rates of the long-term debt as of the dates indicated. September 30, 2015 December 31, 2014 (Dollars in millions) Trust Preferred Securities Floating Three Month LIBOR Plus 3.25%, matures 2032 $ 26 3.58 % $ 26 3.50 % Plus 3.25%, matures 2033 26 3.54 % 26 3.48 % Plus 3.25%, matures 2033 26 3.53 % 26 3.51 % Plus 2.00%, matures 2035 26 2.29 % 26 2.23 % Plus 2.00%, matures 2035 26 2.29 % 26 2.23 % Plus 1.75%, matures 2035 51 2.09 % 51 1.99 % Plus 1.50%, matures 2035 25 1.79 % 25 1.73 % Plus 1.45%, matures 2037 25 1.79 % 25 1.69 % Plus 2.50%, matures 2037 16 2.84 % 16 2.74 % Subtotal $ 247 $ 247 Notes associated with consolidated VIEs Floating One Month LIBOR Plus 0.46% (1) , matures 2018 (3) — 42 Plus 0.16% (2) , matures 2019 (4) 32 42 Total long-term debt $ 279 $ 331 (1) The Note accrued interest at a rate equal to the least of (i) one month LIBOR plus 0.46 percent (ii) the net weighted average coupon, and (iii) 16.00 percent . (2) The interest rate for the notes may adjust monthly and will be subject to (i) a cap based on the weighted average of the loan rates on the mortgage loans, minus the rates at which certain fees and expenses of the issuing entity are calculated and minus any required spread and adjusted for actual days and (ii) a fixed cap of 16.00 percent . (3) In June 2015, the Company exercised a clean-up of the outstanding debt. The par value for the debt was $43 million at December 31, 2014 . (4) The par value for the debt was $33 million and $45 million , respectively, at September 30, 2015 and December 31, 2014 . At September 30, 2015 and December 31, 2014 the three month LIBOR interest rate was 0.33 percent and 0.26 percent , respectively. At September 30, 2015 the one month LIBOR interest rate was 0.19 percent , compared to 0.17 percent at December 31, 2014 . Trust Preferred Securities The trust preferred securities outstanding are callable by the Company are junior subordinated notes. The interest is payable quarterly; however, the Company may defer interest payments for up to 20 quarters without default or penalty. In January 2012, the Company exercised its contractual rights to defer interest payments with respect to trust preferred securities. The payments are periodically evaluated and will be reinstated when appropriate, subject to the provisions of the Company's Supervisory Agreement and Consent Order. At September 30, 2015 , the Company has deferred for 15 quarters and has $26 million accrued for these deferred interest payments. Notes Associated with Consolidated VIEs As previously discussed in Note 6 of the Notes to the Consolidated Financial Statements, herein, the Company determined it was the primary beneficiary of VIEs associated with HELOC securitizations and such VIEs proceeds from the HELOC assets are therefore consolidated in the Consolidated Financial Statements. The assets in the securitization trust are utilized to repay the outstanding debt of the securitization trust. The Company has elected the fair value option for the debt and changes in fair value are recorded to "other noninterest income" on the Consolidated Statements of Operations. Fair value is estimated using quantitative models which incorporate observable and, in some instances, unobservable inputs including security prices, interest rate yield curves, option volatility, currency, commodity or equity rates, and correlations between these inputs. The Company also considers the impact of its own observable credit spreads in the secondary bond markets in determining the discount rate used to value these liabilities. See Note 17 of the Notes to the Consolidated Financial Statements, herein, for additional recurring fair value disclosures. The final legal maturity of the long-term debt associated with the VIE is June 2019; however, this debt agreement has a contractual provision that allows for a clean-up call of the debt when less than 10 percent of the balance remains outstanding. The Company initiated the clean-up call process with respect to the 2006-2 HELOC securitization trust, which the Company expects to complete in the fourth quarter 2015. |
Representation and Warranty Res
Representation and Warranty Reserve | 9 Months Ended |
Sep. 30, 2015 | |
Representation and Warranty Reserve Disclosures [Abstract] | |
Representation and Warranty Reserve | Representation and Warranty Reserve The following table shows the activity impacting the representation and warranty reserve. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Balance, beginning of period $ 48 $ 50 $ 53 $ 54 Provision Charged to gain on sale for current loan sales 2 2 6 5 Charged to representation and warranty reserve - change in estimate (6 ) 13 (13 ) 16 Total (4 ) 15 (7 ) 21 Charge-offs, net 1 (8 ) (1 ) (18 ) Balance, end of period $ 45 $ 57 $ 45 $ 57 At the time a loan is sold, an estimate of the fair value of such loss associated with the mortgage loans is recorded in the representation and warranty reserve in the Consolidated Statements of Financial Condition and charged against the net gain on loan sales in the Consolidated Statements of Operations. Subsequent to the sale, the liability is re-measured on an ongoing basis based on an estimate of probable future losses. Changes in the estimate are recorded in the representation and warranty provision on the Consolidated Statements of Operations. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock and Other Warrants On January 30, 2009, the Company sold to the U.S. Treasury 266,657 shares of Series C fixed rate cumulative non-convertible perpetual preferred stock ("Series C Preferred Stock") and a warrant to purchase up to approximately 1 million shares of Common Stock at an exercise price of $62.00 per share (the "Warrant") for $267 million . The Series C Preferred Stock qualifies as Tier 1 capital and currently pays cumulative dividends quarterly at a rate of 9 percent per annum. The Warrant is exercisable through 2019. In 2013 the U.S. Treasury sold the Series C Preferred Stock and Warrants which are now held by unrelated third-party investors and are no longer held by the U.S. government under the TARP Capital Purchase Program. The warrants are valued utilizing the equity method. Preferred stock with a par value of $0.01 and a liquidation value of $1,000 and additional paid in capital attributable to preferred stock at September 30, 2015 is summarized as follows. Rate Earliest Redemption Date Shares Outstanding Preferred Shares Additional Paid in Capital (Dollars in millions) Series C Preferred Stock 9.0 % 1/31/2012 266,657 $ — $ 267 At September 30, 2015 , the Company has deferred $79 million of dividend payments on the Series C Preferred Stock. Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in accumulated other comprehensive income (loss) for investment securities available-for-sale, investment securities held-to-maturity and cash flow hedges. Held-to-Maturity Securities Available-for-Sale Securities Cash Flow Hedges (Dollars in millions) Accumulated other comprehensive income (loss) Balance at December 31, 2014, net of tax $ — $ 8 $ — Net unrealized loss, net of tax — 9 (5 ) Transfer of net unrealized loss from AFS to HTM 5 (5 ) — Balance at September 30, 2015, net of tax (1) $ 5 $ 12 $ (5 ) Balance at December 31, 2013, net of tax $ — $ (5 ) $ — Net unrealized gain, net of tax — 4 — Balance at September 30, 2014, net of tax (1) $ — $ (1 ) $ — (1) For the periods ended September 30, 2015 and 2014 , there were no reclassifications out of accumulated other comprehensive income (loss) into earnings. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share, excluding dilution, are computed by dividing (loss) earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted (loss) earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in the earnings of the Company. The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions, except share data) Net income (loss) $ 47 $ (28 ) $ 125 $ (80 ) Less: preferred stock dividend/accretion — — — (1 ) Net income (loss) from continuing operations 47 (28 ) 125 (81 ) Deferred cumulative preferred stock dividends (8 ) (7 ) (22 ) (19 ) Net income (loss) applicable to common stock $ 39 $ (35 ) $ 103 $ (100 ) Weighted average shares Weighted average common shares outstanding 56,436,026 56,249,300 56,419,354 56,224,850 Effect of dilutive securities Warrants (1) 339,478 — 290,840 — Stock-based awards 431,999 — 340,595 — Weighted average diluted common shares 57,207,503 56,249,300 57,050,789 56,224,850 Earnings (loss) per common share Net income (loss) applicable to common stock $ 0.70 $ (0.61 ) $ 1.82 $ (1.79 ) Effect of dilutive securities Warrants — — (0.01 ) — Stock-based awards (0.01 ) — (0.01 ) — Diluted earnings (loss) per share $ 0.69 $ (0.61 ) $ 1.80 $ (1.79 ) (1) Includes the May warrants at an exercise price of $10.00 per share and a fair value of $8 million at September 30, 2015 . The three and nine months ended September 30, 2014 diluted loss per share calculation excludes all common stock equivalents, including 248,089 and 273,407 shares pertaining to stock based awards, respectively, and 303,026 and 326,102 shares pertaining to warrants, respectively. The inclusion of these securities would be anti-dilutive. Under the terms of the Series C Preferred Stock the Company may defer dividend payments. The Company elected to defer dividend payments beginning with the February 2012 dividend. Although not included in quarterly net income (loss) from continuing operations, the deferral still impacts net income (loss) applicable to common stock for the purpose of calculating earnings per share, as shown above. The cumulative amount in arrears as of September 30, 2015 is $79 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in interim periods requires the Company to make a best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Provision (benefit) for income taxes $ 24 $ (10 ) $ 70 $ (38 ) Effective tax provision (benefit) rate 34.4 % (27.2 )% 36.0 % (32.3 )% As of each reporting date, the Company considers both positive and negative evidence including any annual limitations to the realization of the Company's net operating loss carryforwards that could impact the view with regard to realization of deferred tax assets. The Company continues to believe it is more likely than not that the benefit for federal deferred tax assets will be realized. The Company continues to believe it is more likely than not that the benefit for certain state deferred tax assets will not be realized. In recognition of this risk, the Company continues to provide a partial valuation allowance on the deferred tax assets relating to state deferred tax assets. The Company believes that it is unlikely that the unrecognized tax benefits will change by a material amount during the next 12 months . The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory Capital Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that could have a material effect on the Consolidated Financial Statements. On January 1, 2015, the Basel III rules became effective and include transition provisions through 2018. Under Basel III, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of common equity Tier 1 capital and additional Tier 1 capital. To be categorized as "well capitalized," the Company and the Bank must maintain minimum tangible capital, Tier 1 capital, common equity Tier 1, and total capital ratios as set forth in the table below. The Company and the Bank are considered "well capitalized" at both September 30, 2015 and December 31, 2014 . There have been no conditions or events that management believes have changed the Company's or the Bank’s category. The following table shows the regulatory capital ratios as of the dates indicated. Bancorp Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2015 (1) Tangible capital (to tangible assets) $ 1,393 11.65 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,393 11.65 % $ 478 4.0 % $ 598 5.0 % Common equity Tier 1 capital (to RWA) 1,024 14.93 % 309 4.5 % 446 6.5 % Tier 1 capital (to risk-weighted assets) 1,393 20.32 % 411 6.0 % 549 8.0 % Total capital (to risk-weighted assets) 1,483 21.64 % 549 8.0 % 686 10.0 % December 31, 2014 Tangible capital (to tangible assets) $ 1,184 12.59 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,184 12.59 % $ 376 4.0 % $ 470 5.0 % Tier 1 capital (to risk-weighted assets) 1,184 22.81 % 208 4.0 % 311 6.0 % Total capital (to risk-weighted assets) 1,252 24.12 % 415 8.0 % 519 10.0 % N/A - Not applicable (1) On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. The Company and the Bank reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. Bank Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2015 (1) Tangible capital (to tangible assets) $ 1,426 11.91 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,426 11.91 % $ 479 4.0 % $ 599 5.0 % Common equity tier 1 capital (to RWA) 1,426 20.75 % 309 4.5 % 447 6.5 % Tier 1 capital (to risk-weighted assets) 1,426 20.75 % 412 6.0 % 550 8.0 % Total capital (to risk-weighted assets) 1,516 22.05 % 550 8.0 % 687 10.0 % December 31, 2014 Tangible capital (to tangible assets) $ 1,167 12.43 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,167 12.43 % $ 376 4.0 % $ 470 5.0 % Tier 1 capital (to risk-weighted assets) 1,167 22.54 % 207 4.0 % 311 6.0 % Total capital (to risk-weighted assets) 1,235 23.85 % 414 8.0 % 518 10.0 % (1) On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. The Company and the Bank reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Commitments | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings, Contingencies and Commitments | Legal Proceedings, Contingencies and Commitments Legal Proceedings The Company and its subsidiaries are subject to various pending or threatened legal proceedings arising out of the normal course of business operations. In addition, the Bank is routinely named in civil actions throughout the country by borrowers and former borrowers relating to the origination, purchase, sale, and servicing of mortgage loans. From time to time, governmental agencies also conduct investigations or examinations of various mortgage-related practices of the Bank. In the course of such investigations or examinations, the Bank cooperates with such agencies and provides information as requested. The Company assesses the liabilities and loss contingencies in connection with such pending or threatened legal and regulatory proceedings on at least a quarterly basis and establishes accruals when the Company believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, litigation accruals are adjusted, as appropriate, in light of additional information. Management does not believe that the amount of any reasonably possible losses in excess of any amounts accrued with respect to ongoing proceedings or any other known claims, including the matters described below, will be material to the Company’s financial statements, or that the ultimate outcome of these actions will have a material adverse effect on its financial condition, results of operations or cash flows. DOJ litigation settlement Per the February 2012 DOJ litigation settlement, the Company is required to make future additional payments contingent upon the occurrence of certain future events. The Company elected the fair value option to account for this liability and uses a weighted average discounted cash flow model to measure fair value. The fair value of the DOJ litigation settlement liability was $84 million and $82 million at September 30, 2015 and December 31, 2014 , respectively. The undiscounted amount of the DOJ litigation settlement liability remains at $118 million at September 30, 2015 . At September 30, 2015 and December 31, 2014 , the Company's total liability for contingent liabilities was $85 million and $86 million , respectively, including the legal proceedings and fair value liability relating to the DOJ litigation settlement. Commitments A summary of the contractual amount of significant commitments is as follows. September 30, 2015 December 31, 2014 (Dollars in millions) Commitments to extend credit Mortgage loans interest-rate lock commitments $ 4,314 $ 2,172 HELOC commitments 133 88 Other consumer commitments 25 7 Warehouse loan commitments 1,046 827 Standby and commercial letters of credit 14 10 Commercial and industrial commitments 297 276 Other commercial commitments 447 169 Commitments to extend credit are agreements to lend. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. Commitments generally have fixed expiration dates or other termination clauses. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit is based on management's credit evaluation of the counterparties. The Company enters into mortgage interest-rate lock commitments with its customers. These commitments are considered to be derivative instruments and changes in the fair value of these commitments are recorded in the Consolidated Statements of Financial Condition in other assets. Further discussion on derivative instruments is included in Note 8 - Derivative Financial Instruments. The Company has unfunded commitments under its contractual arrangement with the HELOC securitization trust to fund future advances on the underlying HELOC. Refer to further discussion of this issue as presented in Note 6 of the Notes to the Consolidated Financial Statements, herein. Other consumer commitments are conditional commitments issued to accommodate the financial needs of customers. The commitments are under various terms to lend funds to consumers, which include revolving credit agreements, term loan commitments and short-term borrowing agreements. Warehouse loan commitments are lines of credit provided to mortgage originators to fund loans they originate and then sell. The proceeds of the sale of the loan is used to repay the draw on the line used to fund the loan. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. Commercial and industrial and other commercial commitments are conditional commitments issued under various terms to lend funds to business and other entities. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Many of these loan commitments have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being funded, the total commitment amounts do not necessarily represent future liquidity requirements. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized on the Consolidated Statements of Financial Condition. The Company's exposure to credit losses in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company utilizes the same credit policies in making commitments and conditional obligations as it does for balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is not a violation of any condition established in the contract. The Company maintains a reserve for letters of credit which is included in other liabilities, which represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unfunded loans with available balances, new commitments to lend that are not yet funded, and standby and commercial letters of credit. The balance of $2 million and $1 million for September 30, 2015 and December 31, 2014 , respectively, is reflected in other liabilities on the Consolidated Statements of Financial Condition. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company utilizes fair value measurements to record certain assets and liabilities at fair value. Valuation Hierarchy U.S. GAAP establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists, as discussed below. Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate as of the measurement date; Level 2 - Quoted prices for similar instruments in active markets, and other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 - Unobservable inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Assets Investment securities available-for-sale. These securities are comprised of U.S. government sponsored agencies and municipal obligations. The Company measures fair value using prices obtained from pricing services. A review is performed on the security prices received from the pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities and comparisons to independent pricing. Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed-income securities, matrix pricing, discounted cash flow using benchmark curves or other factors to determine fair value. Investment securities are classified within level 2 of the valuation hierarchy. Loans held-for-sale. The Company generally estimates the fair value of loans held-for-sale based on quoted market prices for securities backed by similar types of loans. Where quoted market prices were available, such market prices were utilized as estimates for fair values. Otherwise, the fair value of loans was computed by discounting cash flows using observable inputs inclusive of interest rates, prepayment speeds and loss assumptions for similar collateral. These loans are classified as level 2. Loans held-for-investment. Loans held-for-investment are generally recorded at amortized cost. Such loans are not recorded at fair value on a recurring basis. However, from time to time, a loan becomes impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Once a loan is identified as impaired, the fair value of the impaired loan is estimated using one of several methods, including collateral value less costs to sell, market value of similar debt, or discounted cash flows. The fair value of the underlying collateral is determined, where possible, using market prices derived from appraisals or market evaluations which are considered a non-recurring level 3 valuation. Fair value may also be measured using the present value of expected cash flows discounted at the loan's effective interest rate. Loans held-for-investment that are recorded at fair value on a recurring basis are loans that were previously recorded as loans held-for-sale but subsequently transferred to the held-for-investment category. As the Company elected the fair value option for the held-for-sale loans, they continue to be reported at fair value and measured consistent with the level 2 methodology for loans held-for-sale. Certain HELOC loans associated with the previous FSTAR 2005-1 and the current FSTAR 2006-2 securitization trusts have been recorded in the Consolidated Financial Statement as loans held-for-investment at fair value. The Company records these loans as a recurring level 3 valuation. Also included in loans held-for-investment are the second mortgage loans associated with the previous FSTAR 2006-1 mortgage securitization trust. The loans are carried at fair value and valued using a discounted estimated net future cash flow model and are classified within the level 3 valuation hierarchy as the model utilizes significant inputs which are unobservable. See Note 6 - Variable Interest Entities ("VIEs") for additional information. Repossessed assets. Repossessed assets are measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the repossessed asset. The fair value of repossessed assets, upon initial recognition, are estimated using level 3 inputs based on appraisals or evaluations. The significant unobservable inputs used in the level 3 fair value measurements of the Company's impaired loans and repossessed assets primarily relate to internal valuations or analysis. Mortgage Servicing Rights ("MSRs"). The current market for MSRs is not sufficiently liquid to provide participants with quoted market prices. Therefore, the Company uses an option-adjusted spread valuation approach to determine the fair value of MSRs. This approach consists of projecting servicing cash flows under multiple interest rate scenarios and discounting these cash flows using risk-adjusted discount rates. The key assumptions used in the valuation of MSRs include mortgage prepayment speeds and discount rates. Management obtains third-party valuations of the MSR portfolio on a quarterly basis from independent valuation experts to assess the reasonableness of the fair value calculated by its internal valuation model. In certain circumstances, based on the probability of the completion of a sale of MSRs pursuant to a bona-fide purchase offer, the Company considers the bid price of that offer and identifiable transaction costs in comparison to the calculated fair value and may adjust the estimate of fair value to reflect the terms of the pending transaction. Due to the nature of the valuation inputs, MSRs are classified within level 3 of the valuation hierarchy. Other investments. The fair value of the reverse repurchase agreement is determined by cost, which approximates the fair value due to its short term nature. The reverse repurchase agreement is guaranteed by a third party and secured by level 2 government and agency securities which are unobservable by the Company, which are held by a third party. In case of default, the Company would receive the collateral from the third party. The reverse repurchase agreement is included in other assets on the Consolidated Statements of Financial Condition. Derivative financial instruments. Certain classes of derivative contracts are listed on an exchange and are actively traded, and they are therefore classified within level 1 of the valuation hierarchy. These include U.S. Treasury futures and U.S. Treasury options. The Company's forward loan sale commitments, swap futures and interest rate swaps are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified within level 2 of the valuation hierarchy. Rate lock commitments are valued using internal models with significant unobservable market parameters and therefore are classified within level 3 of the valuation hierarchy. The Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. The derivatives are reported in either other assets or other liabilities on the Consolidated Statements of Financial Condition. Liabilities Warrants. Warrant liabilities are valued using a binomial lattice model and are classified within level 2 of the valuation hierarchy. Significant observable inputs include expected volatility, a risk free rate and an expected life. Warrant liabilities are reported in "other liabilities" on the Consolidated Statements of Financial Condition. Long-term debt. The Company records the long-term debt associated with the previous FSTAR 2005-1 and the current FSTAR 2006-2 HELOC securitization trusts at fair value. The fair value of the debt is estimated using quantitative models which incorporate observable and, in some instances, unobservable inputs including security prices, interest rate yield curves, option volatility, currency, commodity or equity rates and correlations between these inputs. The Company also considers the impact of its own credit spreads in determining the discount rate used to value these liabilities. The credit spread is determined by reference to observable spreads in the secondary bond markets, which are considered to be level 3. The Company records this debt as a recurring level 3 valuation. Litigation settlement. Upon settlement of the DOJ litigation settlement, we elected the fair value option to account for the liability representing the remaining future payments. As of September 30, 2015 the fair value totaled $84 million , using a discount rate of 7.6 percent for which we use a discounted cash flow model to determine the current fair value. The model utilizes our forecast and considers multiple scenarios including possible outcomes that impact the timing of the additional payments which are discounted using a risk free rate adjusted for nonperformance risk that represents our credit risk. These scenarios are probability weighted and consider the view of an independent market participant to estimate the most likely fair value of the liability. The liability is classified within level 3 of the valuation hierarchy as the projections of earnings and growth rate and other assumptions are unobservable inputs which affect the estimated timing of the cash flow payments. The Company considers factors which could affect those projections from the perspective of a market participant, which is incorporated into the assessment of fair value. The litigation settlement is included in other liabilities on the Consolidated Statements of Financial Condition and changes in the fair value of the litigation settlement will be recorded each quarter in other noninterest expense on the Consolidated Statements of Operations. Assets and liabilities measured at fair value on a recurring basis The following tables present the financial instruments carried at fair value as of September 30, 2015 and December 31, 2014 , by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy (as described above). Level 1 Level 2 Level 3 Total Fair Value September 30, 2015 (Dollars in millions) Investment securities available-for-sale Agency $ — $ 469 $ — $ 469 Agency-collateralized mortgage obligations — 668 — 668 Municipal obligations — 13 — 13 Loans held-for-sale Residential first mortgage loans — 2,164 — 2,164 Loans held-for-investment Residential first mortgage loans — 7 — 7 Second mortgage loans — — 45 45 HELOC loans — — 80 80 Mortgage servicing rights — — 294 294 Derivative assets Rate lock commitments — — 44 44 Swap futures — 3 — 3 U.S. Treasury and euro dollar futures 2 — — 2 Forward agency and loans sales — 1 — 1 Mortgage backed securities forwards 2 — — 2 Interest rate swaps and swaptions — 15 — 15 Total derivative assets 4 19 44 67 Other investments — — 100 100 Total assets at fair value $ 4 $ 3,340 $ 563 $ 3,907 Derivative liabilities U.S. Treasury and euro dollar futures $ (2 ) $ — $ — $ (2 ) Forward agency and loans sales — (29 ) — (29 ) Interest rate swap on FHLB advances (8 ) — — (8 ) Swap futures — (1 ) — (1 ) Interest rate swaps — (10 ) — (10 ) Total derivative liabilities (10 ) (40 ) — (50 ) Warrant liabilities — (8 ) — (8 ) Long-term debt — — (32 ) (32 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (10 ) $ (48 ) $ (116 ) $ (174 ) Level 1 Level 2 Level 3 Total Fair Value December 31, 2014 (Dollars in millions) Investment securities available-for-sale Agency $ — $ 929 $ — $ 929 Agency-collateralized mortgage obligations — 741 — 741 Municipal obligations — — 2 2 Loans held-for-sale Residential first mortgage loans — 1,196 — 1,196 Loans held-for-investment Residential first mortgage loans — 26 — 26 Second mortgage loans — — 53 53 HELOC loans — — 132 132 Mortgage servicing rights — — 258 258 Derivative assets U.S. Treasury and euro dollar futures 7 — — 7 Rate lock commitments — — 31 31 Mortgage backed securities forwards 2 — — 2 Interest rate swaps — 6 — 6 Total derivative assets 9 6 31 46 Other investments — — 100 100 Total assets at fair value $ 9 $ 2,898 $ 576 $ 3,483 Derivative liabilities Forward agency and loan sales $ — $ (13 ) $ — $ (13 ) U.S. Treasury and euro dollar futures (1 ) — — (1 ) Interest rate swaps — (6 ) — (6 ) Total derivative liabilities (1 ) (19 ) — (20 ) Warrant liabilities — (6 ) — (6 ) Long-term debt — — (84 ) (84 ) DOJ litigation settlement — — (82 ) (82 ) Total liabilities at fair value $ (1 ) $ (25 ) $ (166 ) $ (192 ) The Company had no transfers of assets or liabilities recorded at fair value between fair value levels during the three and nine months ended September 30, 2015 . The Company utilized US Treasury future, forward agency and loan sales and interest rate swaps to manage the risk associated with mortgage servicing rights and rate lock commitments. The assets and/or liabilities transferred are valued at the end of the period. Gains and losses for individual lines in the tables do not reflect the effect of the Company's risk management activities related to such level 3 instruments. Fair value measurements using significant unobservable inputs The tables below include a roll forward of the Consolidated Statement of Financial Condition amounts for the three and nine months ended September 30, 2015 and 2014 (including the change in fair value) for financial instruments classified by the Company within level 3 of the valuation hierarchy. Recorded in Earnings Recorded in OCI Three Months Ended September 30, 2015 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Transfers In (Out) Balance at End of Period Changes in Unrealized Gains / (Losses) Held at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 48 $ — $ — $ — $ — $ — $ (3 ) $ — $ 45 $ — HELOC loans 93 2 — — — — (15 ) — 80 1 Mortgage servicing rights 317 (24 ) — — 74 (73 ) — — 294 (14 ) Other investments 100 — — — — — — — 100 — Totals $ 558 $ (22 ) $ — $ — $ 74 $ (73 ) $ (18 ) $ — $ 519 $ (13 ) Liabilities Long-term debt $ (36 ) $ — $ — $ — $ — $ — $ 4 $ — $ (32 ) $ — DOJ litigation settlement (84 ) — — — — — — — (84 ) — Totals $ (120 ) $ — $ — $ — $ — $ — $ 4 $ — $ (116 ) $ — Derivative financial instruments (net) Rate lock commitments $ 30 $ 53 $ — $ — $ 81 $ (104 ) $ (16 ) $ — $ 44 $ 14 Three Months Ended September 30, 2014 Assets Investment securities available-for-sale Municipal obligation $ — $ — $ — $ — $ — $ — $ — $ 4 $ 4 $ — Loans held-for-investment Second mortgage loans $ 59 $ 1 $ — $ — $ — $ — $ (4 ) $ — $ 56 $ 1 HELOC loans 147 (1 ) 1 — — — (7 ) — 140 (8 ) Mortgage servicing rights 289 (13 ) — — 79 (70 ) — — 285 (5 ) Totals $ 495 $ (13 ) $ 1 $ — $ 79 $ (70 ) $ (11 ) $ 4 $ 485 $ (12 ) Liabilities Long-term debt $ (98 ) $ — $ (2 ) $ — $ — $ — $ 8 $ — $ (92 ) $ — DOJ litigation settlement (78 ) (2 ) — — — — — — (80 ) (2 ) Totals $ (176 ) $ (2 ) $ (2 ) $ — $ — $ — $ 8 $ — $ (172 ) $ (2 ) Derivative financial instruments (net) Rate lock commitments $ 51 $ 10 $ — $ — $ 66 $ (85 ) $ (15 ) $ — $ 27 $ 1 Recorded in Earnings Recorded in OCI Nine Months Ended September 30, 2015 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Transfers In (Out) Balance at End of Period Changes In Unrealized Held at End of Period Assets (Dollars in millions) Investment securities available-for-sale Municipal obligations $ 2 $ — $ — $ — $ — $ — $ (2 ) $ — $ — $ — Loans held-for-investment Second mortgage loans 53 2 1 — — — (11 ) — 45 1 HELOC loans 132 (4 ) — — — — (48 ) — 80 4 Mortgage servicing rights 258 (40 ) — — 220 (144 ) — — 294 (3 ) Other investments 100 — — — — — — — 100 — Totals $ 545 $ (42 ) $ 1 $ — $ 220 $ (144 ) $ (61 ) $ — $ 519 $ 2 Liabilities Long-term debt $ (84 ) $ — $ (3 ) $ — $ — $ 24 $ 31 $ — $ (32 ) $ — DOJ litigation (82 ) (2 ) — — — — — — (84 ) (2 ) Totals $ (166 ) $ (2 ) $ (3 ) $ — $ — $ 24 $ 31 $ — $ (116 ) $ (2 ) Derivative financial instruments (net) Rate lock commitments $ 31 $ 60 $ — $ — $ 272 $ (276 ) $ (43 ) $ — $ 44 $ 30 Nine Months Ended September 30, 2014 Assets Investment securities available-for-sale Municipal obligation $ — $ — $ — $ — $ — $ — $ — $ 4 $ 4 $ — Loans held-for-investment Second mortgage loans $ 65 $ 2 $ 1 $ — $ — $ — $ (12 ) $ — $ 56 $ 2 HELOC loans 155 (1 ) 1 — — — (15 ) — 140 (16 ) Mortgage servicing rights 285 (37 ) — — 198 (161 ) — — 285 (11 ) Totals $ 505 $ (36 ) $ 2 $ — $ 198 $ (161 ) $ (27 ) $ 4 $ 485 $ (25 ) Liabilities Long-term debt $ (106 ) $ — $ (5 ) $ — $ — $ — $ 19 $ — $ (92 ) $ — DOJ litigation (93 ) 13 — — — — — — (80 ) 13 Totals $ (199 ) $ 13 $ (5 ) $ — $ — $ — $ 19 $ — $ (172 ) $ 13 Derivative financial instruments (net) Rate lock commitments $ 10 $ 110 $ — $ — $ 203 $ (244 ) $ (52 ) $ — $ 27 $ 24 The following tables present the quantitative information about recurring level 3 fair value financial instruments and the fair value measurements as of September 30, 2015 and December 31, 2014 . Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2015 (Dollars in millions) Assets Second mortgage loans $ 45 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) HELOC loans $ 80 Discounted cash flows Loss severity on defaulted balance 24.4% - 36.7% (30.6%) Mortgage servicing rights $ 294 Discounted cash flows Option adjusted spread 7.0% - 10.4% (8.7%) Liabilities Long-term debt $ (32 ) Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) DOJ litigation settlement $ (84 ) Discounted cash flows Asset growth rate 4.4% - 6.6% (5.5%) Derivative financial instruments Rate lock commitments $ 44 Consensus pricing Origination pull-through rate 65.3% - 97.9% (81.6%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 (Dollars in millions) Assets Second mortgage loans $ 53 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) HELOC loans $ 132 Discounted cash flows Yield 8.0% - 12.0% (10.0%) Mortgage servicing rights $ 258 Discounted cash flows Option adjusted spread 7.1% - 10.7% (8.9%) Liabilities Long-term debt $ (84 ) Discounted cash flows Discount rate 6.4% - 9.6% (8.0%) DOJ litigation settlement $ (82 ) Discounted cash flows Asset growth rate 4.4% - 6.6% (5.5%) Derivative financial instruments Rate lock commitments $ 31 Consensus pricing Origination pull-through rate 66.2% - 99.3% (82.7%) Recurring Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the second mortgage loans are discount rates, prepayment rates, and default rates. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. Increases in prepay rates in isolation result in a higher fair value and increases (decreases) in default rates in isolation result in a (higher) lower fair value. At September 30, 2015 , the significant unobservable inputs used in the fair value measurement of the HELOC loans are the loss severity on defaulted loans and the weighted average discount rate. For the HELOC loans, increases (decreases) in the loss severity on defaulted balance, in isolation, would result in a lower (higher) fair value measurement; increases (decreases) in the weighted average discount rate, in isolation, would lower (higher) fair value measurement. For the debt carried at fair value (liability), increases (decreases) in the discount rate in isolation would result in a lower (higher) fair value measurement; increases (decreases) in prepayment rates in isolation results in a shorter (longer) weighted average life and ultimately a higher (lower) fair value measurement. In June 2015, the Company executed a clean-up call of the FSTAR 2005-1 long-term debt associated with the HELOC securitization trust. After payment of the debt, the FSTAR 2005-1 HELOC securitization trust has been dissolved as of June 30, 2015. The significant unobservable inputs used in the fair value measurement of the MSRs are option adjusted spreads, prepayment rates, and cost to service. Significant increases (decreases) in all three assumptions in isolation would result in a significantly lower (higher) fair value measurement. The key economic assumptions used in determining the fair value of those MSRs capitalized during the three and nine months ended September 30, 2015 and 2014 periods were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted-average life (in years) 7.9 7.9 7.9 8.0 Weighted-average constant prepayment rate 11.0 % 12.0 % 11.2 % 11.8 % Weighted-average discount rate 10.9 % 11.7 % 10.8 % 12.0 % The key economic assumptions reflected in the overall fair value of the entire portfolio of MSRs were as follows. September 30, December 31, Weighted-average life (in years) 7.1 6.6 Weighted-average constant prepayment rate 13.3 % 15.0 % Weighted-average discount rate 10.4 % 10.9 % The significant unobservable input used in the fair value measurement of the rate lock commitments is the pull through rate. The pull through rate is a statistical analysis of the Company's actual rate lock fallout history to determine the sensitivity of the residential mortgage loan pipeline compared to interest rate changes and other deterministic values. New market prices are applied based on updated loan characteristics and new fallout ratios (i.e., the inverse of the pull through rate) are applied accordingly. Significant increases (decreases) in the pull through rate in isolation would result in a significantly higher (lower) fair value measurement. The significant unobservable inputs used in the fair value measurement of the DOJ litigation settlement are future balance sheet and growth rate projections for overall asset growth, MSR growth, peer group return on assets and return on assets improvement. The current assumptions are based on management's approved, strategic performance targets beyond the current strategic modeling horizon (2015). The Bank's target asset growth rate post-2015 is based on growth in the balance sheet. Significant increases (decreases) in the Bank's growth rate in isolation could result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the Bank's MSR growth rate in isolation could result in a marginally lower (higher) fair value measurement. Significant increases (decreases) in the peer group's return on assets improvement in isolation could result in a marginally higher (lower) fair value measurement. Significant increases (decreases) in the Bank's return on assets in isolation could result in a marginally higher (lower) fair value measurement. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are measured at the lower of cost or fair value and had a fair value below cost at the end of the period as summarized below. Level 3 (1) (Dollars in millions) September 30, 2015 Impaired loans held-for-investment (2) Residential first mortgage loans $ 36 Commercial and industrial loans 3 Repossessed assets (3) 17 Totals $ 56 December 31, 2014 Impaired loans held-for-investment (2) Residential first mortgage loans $ 74 Repossessed assets (3) 19 Totals $ 93 (1) The fair values are obtained at various dates during the three months ended September 30, 2015 and December 31, 2014 , respectively. (2) The Company recorded $20 million and $76 million in fair value losses on impaired loans (included in provision for loan losses on Consolidated Statements of Operations) during the three and nine months ended September 30, 2015 , respectively, compared to $10 million and $38 million in fair value losses on impaired loans during the three and nine months ended September 30, 2014 , respectively. (3) The Company recorded $1 million and $2 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and nine months ended September 30, 2015 , respectively, and recognized net gain of $1 million and $2 million on sales of repossessed assets (both write downs and net gains/losses are included in assets resolution expense on the Consolidated Statements of Operations) during the three and nine months ended September 30, 2015 , respectively. The Company recorded $2 million and $4 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and nine months ended September 30, 2014 , respectively, and recognized net gains of $1 million and $4 million on sales of repossessed assets during the three and nine months ended September 30, 2014 , respectively. The following tables present the quantitative information about non-recurring level 3 fair value financial instruments and the fair value measurements as of September 30, 2015 and December 31, 2014 . Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2015 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 36 Fair value of collateral Loss severity discount 35% - 45% (41.4%) Commercial and industrial loans $ 3 Fair value of collateral Loss severity discount 40% - 50% (50.1%) Repossessed assets $ 17 Fair value of collateral Loss severity discount 0% - 100% (39.5%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 74 Fair value of collateral Loss severity discount 35% - 47% (36.9%) Repossessed assets $ 19 Fair value of collateral Loss severity discount 7% - 100% (45.4%) Non-Recurring Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the impaired loans and repossessed assets are appraisals or other third-party price evaluations which incorporate measures such as recent sales prices for comparable properties. Fair Value of Financial Instruments The following tables present the carrying amount of financial instruments measured at either fair value, historical cost or amortized cost and the estimated fair value of those financial instruments. September 30, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 195 $ 195 $ 195 $ — $ — Investment securities available-for-sale 1,150 1,150 — 1,150 — Investment securities held-to-maturity 1,108 1,118 — 1,118 — Loans held-for-sale 2,408 2,164 — 2,164 — Loans with government guarantees 509 494 — 494 — Loans held-for-investment, net 5,317 5,307 — 7 5,300 Repossessed assets 17 17 — — 17 Federal Home Loan Bank stock 113 113 — 113 — Mortgage servicing rights 294 294 — — 294 Bank owned life insurance 176 176 — 176 — Other investments 100 100 — — 100 Other assets, foreclosure claims 231 231 — 231 — Derivative Financial Instruments U.S. Treasury and euro dollar futures 2 2 2 — — Rate lock commitments 44 44 — — 44 Swap futures 3 3 — 3 — Mortgage back securities forwards 2 2 2 — — Forward agency and loan sales 1 1 — 1 — Interest rate swaps and swaptions 15 15 — 15 — Liabilities Retail deposits Demand deposits and savings accounts (4,850 ) (4,643 ) — (4,643 ) — Certificates of deposit (813 ) (816 ) — (816 ) — Government deposits (1,207 ) (1,189 ) — (1,189 ) — Company controlled deposits (1,267 ) (1,179 ) — (1,179 ) — Federal Home Loan Bank advances (2,024 ) (2,027 ) — (2,027 ) — Long-term debt (279 ) (117 ) — (85 ) (32 ) Warrant liabilities (8 ) (8 ) — (8 ) — Litigation settlement (84 ) (84 ) — — (84 ) Derivative Financial Instruments U.S. Treasury and euro dollar futures (2 ) (2 ) (2 ) — — Interest rate swap on FHLB advances (8 ) (8 ) (8 ) — — Swap futures (1 ) (1 ) — (1 ) — Forward agency and loan sales (29 ) (29 ) — (29 ) — Interest rate swaps (10 ) (10 ) — (10 ) — December 31, 2014 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 136 $ 136 $ 136 $ — $ — Investment securities available-for-sale 1,672 1,672 — 1,670 2 Loans held-for-sale 1,244 1,196 — 1,196 — Loans with government guarantees 1,128 1,094 — 1,094 — Loans held-for-investment, net 4,151 3,998 — 26 3,972 Repossessed assets 19 19 — — 19 Federal Home Loan Bank stock 155 155 155 — — Mortgage servicing rights 258 258 — — 258 Other investments 100 100 — — 100 Derivative Financial Instruments Interest rate swaps 6 6 — 6 — U.S. Treasury futures 7 7 7 — — Rate lock commitments 31 31 — — 31 Agency forwards 2 2 2 — — Liabilities Retail deposits Demand deposits and savings accounts (4,565 ) (4,291 ) — (4,291 ) — Certificates of deposit (813 ) (816 ) — (816 ) — Government deposits (918 ) (884 ) — (884 ) — Company controlled deposits (773 ) (770 ) — (770 ) — Federal Home Loan Bank advances (514 ) (514 ) (514 ) — — Long-term debt (331 ) (172 ) — (88 ) (84 ) Warrant liabilities (6 ) (6 ) — (6 ) — Litigation settlement (82 ) (82 ) — — (82 ) Derivative Financial Instruments Interest rate swaps (6 ) (6 ) — (6 ) — U.S. Treasury futures (1 ) (1 ) (1 ) — — Forward agency and loan sales (13 ) (13 ) — (13 ) — The methods and assumptions used by the Company in estimating fair value of financial instruments which are required for disclosure only, are as follows: Cash and cash equivalents. Due to their short-term nature, the carrying amount of cash and cash equivalents approximates fair value. Investment securities held-to-maturity. Fair values are generated using market inputs, where possible, including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. Loans with government guarantees. The fair value is estimated by using internally developed discounted cash flow models using market interest rate inputs as well as management’s best estimate of spreads for similar collateral. Loans held-for-investment. The fair value is estimated using internally developed discounted cash flow models using market interest rate inputs as well as management’s best estimate of spreads for similar collateral. Federal Home Loan Bank stock. No secondary market exists for Federal Home Loan Bank stock. The stock is bought and sold at par by the Federal Home Loan Bank. Management believes that the recorded value equals the fair value. Bank owned life insurance. The fair value of bank owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. Other assets, foreclosure claims. The fair value of foreclosure claims with government guarantees approximates the carrying amount. Deposit accounts. The fair value of deposits with no defined maturity is estimated based on a discounted cash flow model that incorporates current market rates for similar products and expected attrition. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for certificates of deposit with similar remaining maturities. Federal Home Loan Bank advances. Rates currently available for debt with similar terms and remainin |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operations are conducted through four operating segments: Mortgage Originations, Mortgage Servicing, Community Banking and Other, which includes the remaining reported activities. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. The operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationships of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The Mortgage Originations segment originates, acquires and sells one-to-four family residential mortgage loans. The origination and acquisition of mortgage loans comprises the majority of the lending activity. Mortgage loans are originated through home loan centers, national call centers, the Internet and unaffiliated banks and mortgage banking and brokerage companies, where the net interest income and the gains from sales associated with these loans are recognized in the Mortgage Originations segment. The Mortgage Servicing segment services and sub-services mortgage loans, on a fee basis, for others. Also, the Mortgage Servicing segment services, on a fee basis, residential mortgages held-for-investment by the Community Banking segment and mortgage servicing rights held by the Other segment. The Mortgage Servicing segment may also collect ancillary fees, such as late fees, and earns income through the use of noninterest-bearing escrows. The Community Banking segment originates loans, provides deposits and fee based services to consumer, business, and mortgage lending customers through its Branch Banking, Business, and Commercial Banking, Government Banking, Warehouse Lending and Held-for-Investment Portfolio groups. Products offered through these teams include checking accounts, savings accounts, money market accounts, certificates of deposit, other services, consumer loans, commercial loans, and warehouse lines of credit. Other financial services available to consumer and commercial customers include lines of credit, revolving credit, customized treasury management solutions, equipment leasing, inventory, and accounts receivable lending and capital markets services such as interest rate risk protection products. The Other segment includes the treasury functions, funding revenue associated with stockholders' equity, the impact of interest rate risk management, the impact of balance sheet funding activities, and miscellaneous other expenses of a corporate nature. Treasury functions include administering the investment securities portfolios, balance sheet funding, interest rate risk management and MSR asset valuation, certain derivative and sales into the secondary market. In addition, the Other segment includes revenue and expenses related to treasury and corporate assets and liabilities and equity not directly assigned or allocated to the Mortgage Originations, Mortgage Servicing or Community Banking operating segments. Revenues are comprised of net interest income (before the provision for loan losses) and noninterest income. Noninterest expenses are fully allocated to each operating segment. Allocation methodologies may be subject to periodic adjustment as the internal management accounting system is revised and the business or product lines within the segments change. The following tables present financial information by business segment for the periods indicated. Three Months Ended September 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 19 $ 4 $ 44 $ 6 $ 73 Net gain (loss) on loan sales 72 — (4 ) — 68 Representation and warranty reserve - change in estimate (4 ) 10 — — 6 Other noninterest income 17 14 12 11 54 Total net interest income and noninterest income 104 28 52 17 201 Benefit for loan losses — — 1 — 1 Asset resolution — — — — — Depreciation and amortization expense (1 ) (1 ) (1 ) (9 ) (12 ) Other noninterest expense (47 ) (37 ) (38 ) 3 (119 ) Total noninterest expense (48 ) (38 ) (39 ) (6 ) (131 ) Income (loss) before federal income taxes 56 (10 ) 14 11 71 Provision for federal income taxes — — — 24 24 Net income (loss) $ 56 $ (10 ) $ 14 $ (13 ) $ 47 Intersegment revenue $ 15 $ (5 ) $ (4 ) $ (6 ) $ — Average balances Loans held-for-sale $ 2,179 $ — $ 21 $ — $ 2,200 Loans with government guarantees — 547 — — 547 Loans held-for-investment 4 — 5,348 60 5,412 Total assets 2,337 860 5,336 3,772 12,305 Deposits — 1,487 6,773 — 8,260 Three Months Ended September 30, 2014 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 16 $ 6 $ 38 $ 4 $ 64 Net gain on loan sales 52 — — — 52 Representation and warranty reserve - change in estimate (11 ) (2 ) — — (13 ) Other noninterest income 17 12 14 3 46 Total net interest income and noninterest income 74 16 52 7 149 Provision for loan losses — — (8 ) — (8 ) Asset resolution — (13 ) (1 ) — (14 ) Depreciation and amortization expense — (2 ) (1 ) (3 ) (6 ) Other noninterest expense (59 ) (56 ) (41 ) (3 ) (159 ) Total noninterest expense (59 ) (71 ) (43 ) (6 ) (179 ) Income (loss) before federal income taxes 15 (55 ) 1 1 (38 ) Benefit for federal income taxes — — — (10 ) (10 ) Net income (loss) $ 15 $ (55 ) $ 1 $ 11 $ (28 ) Intersegment revenue $ 2 $ 4 $ — $ (6 ) $ — Average balances Loans held-for-sale $ 1,590 $ — $ 39 $ — $ 1,629 Loans with government guarantees — 1,215 — — 1,215 Loans held-for-investment — — 4,088 — 4,088 Total assets 1,747 1,358 4,005 3,143 10,253 Deposits — 865 6,182 — 7,047 Nine Months Ended September 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 54 $ 11 $ 126 $ 20 $ 211 Net gain (loss) on loan sales 255 — (13 ) — 242 Representation and warranty reserve - change in estimate (3 ) 16 — — 13 Other noninterest income (loss) 52 41 19 6 118 Total net interest income and noninterest income 358 68 132 26 584 Benefit for loan losses — — 18 — 18 Asset resolution — (12 ) (1 ) — (13 ) Depreciation and amortization expense (2 ) (2 ) (4 ) (28 ) (36 ) Other noninterest expense (156 ) (96 ) (116 ) 10 (358 ) Total noninterest expense (158 ) (110 ) (121 ) (18 ) (407 ) Income (loss) before federal income taxes 200 (42 ) 29 8 195 Provision for federal income taxes — — — 70 70 Net income (loss) $ 200 $ (42 ) $ 29 $ (62 ) $ 125 Intersegment revenue $ 18 $ 1 $ (9 ) $ (10 ) $ — Average balances Loans held-for-sale $ 2,052 $ — $ 36 $ — $ 2,088 Loans with government guarantees — 679 — — 679 Loans held-for-investment 3 — 4,786 96 4,885 Total assets 2,194 1,004 4,753 3,712 11,663 Deposits — 1,189 6,602 — 7,791 Nine Months Ended September 30, 2014 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 42 $ 17 $ 111 $ 15 $ 185 Net gain (loss) on loan sales 155 — (3 ) — 152 Representation and warranty reserve - change in estimate (10 ) (6 ) — — (16 ) Other noninterest income 42 47 13 25 127 Total net interest income and noninterest income 229 58 121 40 448 Provision for loan losses — — (127 ) — (127 ) Asset resolution — (41 ) (2 ) — (43 ) Depreciation and amortization expense (1 ) (4 ) (4 ) (8 ) (17 ) Other noninterest expense (159 ) (92 ) (119 ) (9 ) (379 ) Total noninterest expense (160 ) (137 ) (125 ) (17 ) (439 ) Income (loss) before federal income taxes 69 (79 ) (131 ) 23 (118 ) Benefit for federal income taxes — — — (38 ) (38 ) Net income (loss) $ 69 $ (79 ) $ (131 ) $ 61 $ (80 ) Intersegment revenue $ 7 $ 14 $ (3 ) $ (18 ) $ — Average balances Loans held-for-sale $ 1,407 $ — $ 75 $ — $ 1,482 Loans with government guarantees — 1,241 — — 1,241 Loans held-for-investment — — 3,956 — 3,956 Total assets 1,559 1,379 3,945 2,913 9,796 Deposits — 723 5,873 — 6,596 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has voted to approve another year deferral of the effective date from January 1, 2017 to January 1, 2019, while allowing for early adoption as of January 1, 2018. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on the Company’s Consolidated Financial Statements, but significant disclosures to the Notes thereto will be required. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual items (Subtopic 225-20). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The ASU is effective for the annual period beginning after December 15, 2015, though early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis. Under the amended guidance all reporting entities are within the scope of Subtopic 810-10, Consolidation - Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The presumption that a general partner controls a limited partnership has been eliminated. The ASU is effective for the annual period beginning after December 15, 2015, and all reporting periods thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30). The amendments will require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective prospectively or retrospectively for annual and interim periods beginning after December 15, 2015. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other Internal-Use Software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other licenses. If it does not include a software license, the customer should account for the arrangement as a service contract. The ASU is effective for the annual period beginning after December 15, 2015, and all reporting periods thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its equivalent). The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient pursuant to ASC 820, Fair Value Measurement. Instead, those investments must be included as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, the ASU specifies that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. ASU 2015-07 is effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements or the Notes thereto. In July 2015, the FASB issued ASU No 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (consensuses of the FASB Emerging Issues Task Force). Under the amendments, fully benefit-responsive investment contracts are measured, presented, and disclosed only at contract value. A plan will continue to provide disclosures that help users understand the nature and risks of fully benefit-responsive investment contracts. ASU 2015-12 is effective retrospectively for fiscal years beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. In September 2015, the FASB issued ASU No 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the amendments require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective retrospectively for fiscal years beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. |
Restatement of Consolidated Sta
Restatement of Consolidated Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Consolidated Statements of Cash Flows | Restatement of Consolidated Statements of Cash Flows The Company reclassified the reporting of certain cash flows from operating, financing, and investing activities in the Consolidated Statements of Cash Flows for each of the quarterly periods in the year ended 2014 . The primary cause of the reclassifications related to cash flows associated with our nonperforming loan sales that occurred throughout 2014, which were presented as cash flows provided by operating activities but should have been included in cash flows provided by investing activities consistent with the original balance sheet classification rather than their classification at the time of sale per ASC 230-45-12. These reclassifications have no impact on the total cash flows for the periods impacted or on the beginning or ending cash balances for any of these periods. The Company has included the comparison of the as stated and restated amounts for the period ended September 30, 2014 , herein. Nine Months Ended September 30, 2014 (Unaudited) (Unaudited) As Restated As Reported Operating Activities Net loss $ (80 ) $ (80 ) Adjustments to reconcile net loss to net cash used in operating activities: Provision for loan losses 127 127 Representation and warranty provision 16 16 Depreciation and amortization 18 18 Loss on fair value of mortgage servicing rights * 36 Loss on fair value of long-term debt * 5 Deferred income taxes (35 ) * Net gain on loan and asset sales (163 ) (167 ) Change in fair value and other non-cash changes (150 ) * Net gain on investment securities * (3 ) Net change in: Proceeds from sales of loans held-for-sale ("HFS") 12,610 13,249 Origination, premium paid and repurchase of loans, net of principal repayments (18,225 ) (18,927 ) Decrease in repurchase loans with government guarantees, net of claims received * 82 Increase in accrued interest receivable (12 ) (12 ) Increase in other assets, excludes purchase of other investments (82 ) (103 ) Increase in payable for mortgage repurchase option * (17 ) Net charge-offs in representation and warranty reserve (18 ) (18 ) Increase in other liabilities 35 20 Net cash used in operating activities (5,959 ) (5,774 ) Investing Activities Proceeds from sale of available-for-sale securities including loans that have been securitized 6,532 * Proceeds received from sale of investment securities available-for-sale * 6,317 Collection of principal on investment securities available-for-sale 118 * Repayment of investment securities available-for-sale * 118 Purchase of investment securities available-for-sale and other (756 ) (755 ) Proceeds received from the sale of held-for-investment loans ("HFI") 62 * Origination and purchase of loans HFI, net of principal repayments (623 ) * Net change from sales of loans held-for-investment * (369 ) Principal repayments net of origination of loans held-for-investment * (150 ) Proceeds from the disposition of repossessed assets 30 30 Acquisitions of premises and equipment, net of proceeds (26 ) (26 ) Proceeds from the sale of mortgage servicing rights 168 155 Net cash provided by investing activities 5,505 5,320 Financing Activities Net increase in deposit accounts 1,094 1,094 Net increase in Federal Home Loan Bank Advances * (838 ) Proceeds from increases in Federal Home Loan Bank Advances 13,633 * Repayment of Federal Home Loan Bank advances (14,471 ) * Repayment of trust preferred securities and long-term debt (19 ) (19 ) Net receipt of payments of loans serviced for others 39 39 Net receipt of escrow payments 4 4 Net cash provided by financing activities 280 280 Net decrease in cash and cash equivalents (174 ) (174 ) Beginning cash and cash equivalents 281 281 Ending cash and cash equivalents $ 107 $ 107 Supplemental disclosure of cash flow information Interest paid on deposits and other borrowings $ 23 $ 23 Income tax refund $ (1 ) $ — Non-cash reclassification of loans HFI to loans HFS $ 384 $ 384 Non-cash reclassification of mortgage loans HFS to HFI $ 15 $ 15 Non-cash reclassification of mortgage loans HFS to AFS securities $ 6,234 * Mortgage servicing rights resulting from sale or securitization of loans $ 198 $ 198 Loans held-for-investment transferred to repossessed assets * $ 49 * Line item caption changes. Activity has been reported under a new caption. |
Recently Issued Accounting Pr29
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has voted to approve another year deferral of the effective date from January 1, 2017 to January 1, 2019, while allowing for early adoption as of January 1, 2018. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on the Company’s Consolidated Financial Statements, but significant disclosures to the Notes thereto will be required. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual items (Subtopic 225-20). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The ASU is effective for the annual period beginning after December 15, 2015, though early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis. Under the amended guidance all reporting entities are within the scope of Subtopic 810-10, Consolidation - Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The presumption that a general partner controls a limited partnership has been eliminated. The ASU is effective for the annual period beginning after December 15, 2015, and all reporting periods thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30). The amendments will require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective prospectively or retrospectively for annual and interim periods beginning after December 15, 2015. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other Internal-Use Software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other licenses. If it does not include a software license, the customer should account for the arrangement as a service contract. The ASU is effective for the annual period beginning after December 15, 2015, and all reporting periods thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements or the Notes thereto. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its equivalent). The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient pursuant to ASC 820, Fair Value Measurement. Instead, those investments must be included as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, the ASU specifies that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. ASU 2015-07 is effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements or the Notes thereto. In July 2015, the FASB issued ASU No 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (consensuses of the FASB Emerging Issues Task Force). Under the amendments, fully benefit-responsive investment contracts are measured, presented, and disclosed only at contract value. A plan will continue to provide disclosures that help users understand the nature and risks of fully benefit-responsive investment contracts. ASU 2015-12 is effective retrospectively for fiscal years beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. In September 2015, the FASB issued ASU No 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the amendments require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective retrospectively for fiscal years beginning after December 15, 2015 and early adoption is permitted. This guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Trading and Available-for-sale Securities | As of September 30, 2015 and December 31, 2014 , investment securities were comprised of the following. Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in millions) September 30, 2015 Available-for-sale securities Agency $ 463 $ 7 $ (1 ) $ 469 Agency-collateralized mortgage obligations 657 11 — 668 Municipal obligations 13 — — 13 Total available-for-sale securities $ 1,133 $ 18 $ (1 ) $ 1,150 Held-to-maturity securities Agency $ 445 $ 4 $ — $ 449 Agency-collateralized mortgage obligations 663 6 — 669 Total held-to-maturity securities $ 1,108 $ 10 $ — $ 1,118 December 31, 2014 (2) Available-for-sale securities Agency $ 925 $ 6 $ (2 ) $ 929 Agency-collateralized mortgage obligations 734 8 (1 ) 741 Municipal obligations 2 — — 2 Total available-for-sale securities $ 1,661 $ 14 $ (3 ) $ 1,672 (1) Includes the investment securities that were transfered to held-to-maturity at fair value. (2) The Company did not have any held-to-maturity securities at December 31, 2014. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table summarizes by duration the unrealized loss positions on investment securities: Unrealized Loss Position with Duration 12 Months and Over Unrealized Loss Position with Duration Under 12 Months Fair Value Number of Securities Unrealized Loss Fair Value Number of Securities Unrealized Loss Type of Security (Dollars in millions) September 30, 2015 Available-for-sale securities Agency $ 8 2 $ — $ 87 7 $ (1 ) Agency-collateralized mortgage obligations — — — 42 3 — Held-to-maturity securities Agency $ — — $ — $ 10 1 $ — December 31, 2014 Available-for-sale securities Agency $ 53 6 $ — $ 305 21 $ (2 ) Agency-collateralized mortgage obligations 98 10 (1 ) 38 4 — |
Schedule of Available-for-sale Securities, by Contractual Maturity Date | The amortized cost and estimated fair value of securities at September 30, 2015 , are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Investment Securities Available-for-Sale Investment Securities Held-to-maturity Amortized Cost Fair Value Weighted-Average Yield Amortized Cost Fair Value Weighted-Average Yield September 30, 2015 (Dollars in millions) (Dollars in millions) Due in one year or less $ — $ — — % $ — $ — — % Due after one year through five years — — — % — — — % Due after five years through 10 years 13 13 4.60 % 69 69 2.43 % Due after 10 years 1,120 1,137 2.50 % 1,039 1,049 2.44 % Total $ 1,133 $ 1,150 $ 1,108 $ 1,118 |
Loans Held-for-Investment (Tabl
Loans Held-for-Investment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans Held-for-investment | Loans held-for-investment are summarized as follows. September 30, December 31, (Dollars in millions) Consumer loans Residential first mortgage $ 2,726 $ 2,193 Second mortgage 140 149 HELOC 405 257 Other 32 31 Total consumer loans 3,303 2,630 Commercial loans Commercial real estate 707 620 Commercial and industrial 493 429 Warehouse lending 1,011 769 Total commercial loans 2,211 1,818 Total loans held-for-investment 5,514 4,448 Less allowance for loan losses (197 ) (297 ) Loans held-for-investment, net $ 5,317 $ 4,151 |
Allowance for Loan Losses | The allowance for loan losses by class of loan are summarized in the following table. Residential First Mortgage Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) Three Months Ended September 30, 2015 Beginning balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 Charge-offs (1) (21 ) (1 ) (1 ) (1 ) — (3 ) — (27 ) Recoveries 1 1 — 1 — — — 3 Provision (benefit) (2 ) (1 ) (1 ) — (2 ) 5 — (1 ) Ending balance allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 Three Months Ended September 30, 2014 Beginning balance allowance for loan losses $ 249 $ 14 $ 14 $ 2 $ 19 $ 5 $ 3 $ 306 Charge-offs (1) (12 ) (1 ) (1 ) (1 ) — — — (15 ) Recoveries 1 — — 1 — — — 2 Provision (benefit) 2 (1 ) 6 — 2 — (1 ) 8 Ending balance allowance for loan losses $ 240 $ 12 $ 19 $ 2 $ 21 $ 5 $ 2 $ 301 Nine Months Ended September 30, 2015 Beginning balance allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 Charge-offs (1) (80 ) (2 ) (2 ) (3 ) — (3 ) — (90 ) Recoveries 3 1 — 2 2 — — 8 Provision (benefit) (28 ) 2 6 1 (6 ) 6 1 (18 ) Ending balance allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 Nine Months Ended September 30, 2014 Beginning balance allowance for loan losses $ 162 $ 12 $ 8 $ 2 $ 19 $ 3 $ 1 $ 207 Charge-offs (1) (29 ) (3 ) (5 ) (2 ) (2 ) — — (41 ) Recoveries 3 — — 2 3 — — 8 Provision (benefit) 104 3 16 — 1 2 1 127 Ending balance allowance for loan losses $ 240 $ 12 $ 19 $ 2 $ 21 $ 5 $ 2 $ 301 (1) Includes charge-offs of $16 million and $6 million related to the sale or transfer of loans during the three months ended September 30, 2015 and September 30, 2014 , respectively, and $67 million and $8 million related to the sale or transfer of loans during the nine months ended September 30, 2015 and September 30, 2014 , respectively. The loans held-for-investment and allowance for loan losses by class of loan is summarized in the following table. Residential First Mortgage Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) September 30, 2015 Loans held-for-investment Individually evaluated $ 77 $ 29 $ 3 $ — $ — $ 3 $ — $ 112 Collectively evaluated (1) 2,642 66 322 32 707 490 1,011 5,270 Total loans $ 2,719 $ 95 $ 325 $ 32 $ 707 $ 493 $ 1,011 $ 5,382 Allowance for loan losses Individually evaluated $ 21 $ 7 $ 1 $ — $ — $ — $ — $ 29 Collectively evaluated (1) 108 6 22 1 13 14 4 168 Total allowance for loan losses $ 129 $ 13 $ 23 $ 1 $ 13 $ 14 $ 4 $ 197 December 31, 2014 Loans held-for-investment Individually evaluated $ 385 $ 31 $ 1 $ — $ — $ — $ — $ 417 Collectively evaluated (1) 1,782 65 124 31 620 429 769 3,820 Total loans $ 2,167 $ 96 $ 125 $ 31 $ 620 $ 429 $ 769 $ 4,237 Allowance for loan losses Individually evaluated $ 82 $ 5 $ 1 $ — $ — $ — $ — $ 88 Collectively evaluated (1) 152 7 18 1 17 11 3 209 Total allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 (1) Excludes loans carried under the fair value option. |
Past Due Loans | The following table sets forth the loans held-for-investment aging analysis as of September 30, 2015 and December 31, 2014 , of past due and current loans. 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due (1) Total Past Due Current Total Investment Loans (Dollars in millions) September 30, 2015 Consumer loans Residential first mortgage $ 8 $ 5 $ 51 $ 64 $ 2,662 $ 2,726 Second mortgage 1 — 1 2 138 140 HELOC 4 3 7 14 391 405 Other — — 1 1 31 32 Total consumer loans 13 8 60 81 3,222 3,303 Commercial loans Commercial real estate — — — — 707 707 Commercial and industrial — — 3 3 490 493 Warehouse lending — — — — 1,011 1,011 Total commercial loans — — 3 3 2,208 2,211 Total loans (2) $ 13 $ 8 $ 63 $ 84 $ 5,430 $ 5,514 December 31, 2014 Consumer loans Residential first mortgage $ 29 $ 8 $ 115 $ 152 $ 2,041 $ 2,193 Second mortgage 1 1 2 4 145 149 HELOC 4 1 3 8 249 257 Other — — — — 31 31 Total consumer loans 34 10 120 164 2,466 2,630 Commercial loans Commercial real estate — — — — 620 620 Commercial and industrial — — — — 429 429 Warehouse lending — — — — 769 769 Total commercial loans — — — — 1,818 1,818 Total loans (2) $ 34 $ 10 $ 120 $ 164 $ 4,284 $ 4,448 (1) Includes performing nonaccrual loans that are less than 90 days delinquent and for which interest can not be accrued. (2) Includes $9 million and $5 million of loans 90 days or greater past due accounted for under the fair value option at September 30, 2015 and December 31, 2014 , respectively. |
Troubled Debt Restructurings | The following table provides a summary of newly modified TDRs and TDR loans that subsequently defaulted in the previous 12 months during the three and nine months ended September 30, 2015 and 2014 . All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due. Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) Increase (Decrease) in Allowance at Modification Three Months Ended September 30, 2015 (Dollars in millions) Residential first mortgages 48 $ 13 $ 14 $ — Second mortgages 15 1 1 — HELOC (2) 46 4 4 — Total TDR loans 109 $ 18 $ 19 $ — Three Months Ended September 30, 2014 Residential first mortgages 36 $ 11 $ 11 $ 1 Second mortgages 85 3 3 — HELOC (2) 4 — — — Total TDR loans 125 $ 14 $ 14 $ 1 Nine Months Ended September 30, 2015 Residential first mortgages 239 $ 66 $ 65 $ (1 ) Second mortgages 83 4 3 — HELOC (2) 204 12 11 — Consumer 3 — — — Total TDR loans 529 $ 82 $ 79 $ (1 ) Nine Months Ended September 30, 2014 Residential first mortgages 107 $ 31 $ 30 $ 2 Second mortgages 291 9 9 — HELOC (2) 19 1 — — Total TDR loans 417 $ 41 $ 39 $ 2 TDRs that subsequently defaulted in previous 12 months Number of Accounts Unpaid Principal Balance Increase in Allowance at Subsequent Default Three Months Ended September 30, 2015 (Dollars in millions) Residential first mortgages 1 $ — $ — Total TDR loans 1 $ — $ — Three Months Ended September 30, 2014 Second mortgages 2 $ — $ — Total TDR loans 2 $ — $ — Nine Months Ended September 30, 2015 Residential first mortgages 1 $ — $ — Second mortgages 1 — — Total TDR loans 2 $ — $ — Nine Months Ended September 30, 2014 Residential first mortgages 2 $ — $ — Second mortgages 15 — — HELOC (2) 5 — — Total TDR loans 22 $ — $ — (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) HELOC post-modification unpaid principal balance reflects write downs. The following table provides a summary of TDRs outstanding by type and performing status. TDRs Performing Nonperforming Total September 30, 2015 (Dollars in millions) Consumer loans Residential first mortgage $ 41 $ 20 $ 61 Second mortgage 34 1 35 HELOC 22 5 27 Total consumer loans 97 26 123 Commercial loans Commercial real estate — — — Commercial and industrial — — — Total commercial loans — — — Total TDRs (1)(2) $ 97 $ 26 $ 123 December 31, 2014 Consumer loans Residential first mortgage $ 306 $ 44 $ 350 Second mortgage 35 1 36 HELOC 20 1 21 Total consumer loans 361 46 407 Commercial loans Commercial real estate 1 — 1 Total TDRs (1)(2) $ 362 $ 46 $ 408 (1) The allowance for loan losses on consumer TDR loans totaled $16 million and $81 million at September 30, 2015 and December 31, 2014 , respectively. (2) Includes $31 million and $30 million of TDR loans accounted for under the fair value option at September 30, 2015 and December 31, 2014 |
Impaired Loans | The following table presents impaired loans and the associated allowance: September 30, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in millions) With no related allowance recorded Consumer loans Residential first mortgage loans $ 6 $ 6 $ — $ 63 $ 78 $ — Second mortgage — — — 1 6 — HELOC — — — — 1 — Commercial loans Commercial and industrial 3 6 — — — — $ 9 $ 12 $ — $ 64 $ 85 $ — With an allowance recorded Consumer loans Residential first mortgage $ 70 $ 71 $ 22 $ 321 $ 326 $ 82 Second mortgage 29 29 7 29 29 6 HELOC 3 3 1 1 1 1 $ 102 $ 103 $ 30 $ 351 $ 356 $ 89 Total Consumer loans Residential first mortgage $ 76 $ 77 $ 22 $ 384 $ 404 $ 82 Second mortgage 29 29 7 30 35 6 HELOC 3 3 1 1 2 1 Commercial loans Commercial and industrial 3 6 — — — — Total impaired loans $ 111 $ 115 $ 30 $ 415 $ 441 $ 89 The following table presents average impaired loans and the interest income recognized: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in millions) Consumer loans Residential first mortgage $ 96 $ 1 $ 406 $ 3 $ 172 $ 4 $ 408 $ 8 Second mortgage 29 — 30 — 30 — 28 1 HELOC 15 — 1 — 6 — 1 — Commercial loans Commercial real estate — — — — — — 1 — Commercial and industrial 2 — — — 1 — — — Total impaired loans $ 142 $ 1 $ 437 $ 3 $ 209 $ 4 $ 438 $ 9 |
Loan Credit Quality Indicators | Commercial Credit Loans Commercial Real Estate Commercial and Industrial Warehouse Total Commercial September 30, 2015 (Dollars in millions) Grade Pass $ 659 $ 445 $ 921 $ 2,025 Watch 43 19 76 138 Special mention 5 7 11 23 Substandard — 19 3 22 Doubtful — 3 — 3 Total loans $ 707 $ 493 $ 1,011 $ 2,211 December 31, 2014 Pass $ 578 $ 398 $ 650 $ 1,626 Watch 29 10 119 158 Special mention 2 — — 2 Substandard 11 21 — 32 Total loans $ 620 $ 429 $ 769 $ 1,818 Consumer Credit Loans Residential First Mortgage Second Mortgage HELOC Other Consumer Total September 30, 2015 (Dollars in millions) Grade Pass $ 2,625 $ 104 $ 374 $ 32 $ 3,135 Watch 44 34 24 — 102 Substandard 57 2 7 — 66 Total loans $ 2,726 $ 140 $ 405 $ 32 $ 3,303 December 31, 2014 Pass $ 1,764 $ 111 $ 233 $ 31 $ 2,139 Watch 314 36 21 — 371 Substandard 115 2 3 — 120 Total loans $ 2,193 $ 149 $ 257 $ 31 $ 2,630 |
Variable Interest Entities (V32
Variable Interest Entities (VIEs) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Summary of Classifications of Consolidated VIEs | The following table provides a summary of the classifications of consolidated VIE assets and liabilities included in the Consolidated Financial Statements. 2005-1 2006-2 Total September 30, 2015 (Dollars in millions) HELOC Securitizations Assets Loans held-for-investment $ — $ 57 $ 57 Liabilities Long-term debt $ — $ 32 $ 32 2005-1 2006-2 Total December 31, 2014 (Dollars in millions) HELOC Securitizations Assets Loans held-for-investment $ 63 $ 69 $ 132 Liabilities Long-term debt $ 42 $ 42 $ 84 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | Changes in the carrying value of residential first mortgage MSRs, accounted for at fair value, were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Balance at beginning of period $ 317 $ 289 $ 258 $ 285 Additions from loans sold with servicing retained 74 79 220 199 Reductions from sales (73 ) (68 ) (144 ) (161 ) Changes in fair value due to (1) Decrease in MSR due to pay-offs, pay-downs and run-off (9 ) (10 ) (34 ) (22 ) Changes in valuation inputs or assumptions (2) (15 ) (5 ) (6 ) (16 ) Fair value of MSRs at end of period $ 294 $ 285 $ 294 $ 285 (1) Changes in fair value are included within net return on mortgage servicing asset on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes in interest rates |
Schedule of Servicing Assets at Fair Value, Servicing Fees | The following table summarizes income and fees associated with the mortgage servicing asset. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Income on mortgage servicing asset Servicing fees, ancillary income and late fees (1) $ 18 $ 17 $ 52 $ 50 Fair value adjustments (2) (24 ) (15 ) (38 ) (38 ) Gain on hedging activity (3) 15 — 10 10 Net transaction costs 3 (1 ) (5 ) — Total income on mortgage servicing asset, included in net return on mortgage servicing asset $ 12 $ 1 $ 19 $ 22 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Includes a $2 million gain related to the sale of MSRs during the nine months ended September 30, 2015 . (3) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. Contractual servicing and subservicing fees . Contractual servicing and subservicing fees, including late fees and other ancillary income, for each type of loan serviced are presented below. Contractual servicing fees are included within net return on mortgage servicing asset on the Consolidated Statements of Operations. Contractual subservicing fees including late fees and other ancillary income are included within loan administration income on the Consolidated Statements of Operations. Subservicing fee income is recorded for fees earned, net of third-party subservicing costs, for loans subserviced. The following table summarizes income and fees associated with the mortgage loans subserviced. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 8 $ 7 $ 24 $ 21 Other servicing charges — (1 ) (5 ) (2 ) Total income on mortgage loans subserviced, included in loan administration $ 8 $ 6 $ 19 $ 19 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on cash basis. |
Schedule of Sensitivity Analysis of Fair Value | The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10 percent and 20 percent to the weighted-average of certain significant assumptions used in valuing these assets. September 30, 2015 December 31, 2014 Fair value due to Fair value due to Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 8.68 % $ 285 $ 276 8.88 % $ 250 $ 243 Constant prepayment rate 13.27 % 283 272 14.98 % 253 245 Weighted average cost to service per loan $ 73.48 290 286 $ 74.49 258 255 |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Changes in Fair Value of Derivative Instruments | The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Location of Gain/(Loss) 2015 2014 2015 2014 (Dollars in millions) Derivatives not designated as hedging instruments: U.S. Treasury and euro dollars futures Net return on mortgage servicing asset $ 3 $ — $ 6 $ 6 Swap futures Net return on mortgage servicing asset 10 — 2 — Mortgage backed securities forwards Net return on mortgage servicing asset 2 — 2 4 Rate lock commitments and forward agency and loan sales Net gain on loan sales (24 ) (1 ) (4 ) (8 ) Rate lock commitments Other noninterest income 1 — (1 ) — Interest rate swaps Other noninterest income 2 1 2 2 Total derivative (loss) gain $ (6 ) $ — $ 7 $ 4 |
Schedule of Derivative Financial Instruments | The notional amount, estimated fair value and maturity of our derivative financial instruments were as follows: Notional Amount Fair Value Expiration Dates (Dollars in millions) September 30, 2015 Derivatives designated as hedging instruments: Liabilities (2) Interest rate swaps on FHLB advances $ 225 $ 8 2025 Derivatives not designated as hedging instruments: Assets (1) U.S. Treasury and euro dollar futures $ 232 $ 2 2015-2019 Mortgage backed securities forwards 173 2 2015 Swap futures 179 3 2028-2045 Rate lock commitments 4,234 44 2015 Forward agency and loan sales 69 1 2015 Interest rate swaps and swaptions 769 15 2016-2033 Total derivative assets $ 5,656 $ 67 Liabilities (2) U.S. Treasury and euro dollar futures $ 1,793 $ 2 2015-2020 Mortgage backed securities forwards 10 — 2015 Swap futures 26 1 2022 Rate lock commitments 41 — 2015 Forward agency and loan sales 4,150 29 2015 Interest rate swaps 399 10 2016-2025 Total derivative liabilities $ 6,419 $ 42 December 31, 2014 Derivatives not designated as hedging instruments: Assets (1) Mortgage servicing rights U.S. Treasury and euro dollar futures $ 2,530 $ 7 2015-2020 Mortgage backed securities forwards 161 2 2015 Rate lock commitments 2,604 31 2015 Forward agency and loan sales 194 — 2015 Interest rate swaps 355 6 2015-2021 Total derivative assets $ 5,844 $ 46 Liabilities (2) Mortgage servicing rights U.S. Treasury and euro dollar futures $ 687 $ 1 2015-2020 Rate lock commitments 22 — 2015 Forward agency and loan sales 2,789 13 2015 Interest rate swaps 367 6 2015-2021 Total derivative liabilities $ 3,865 $ 20 (1) Derivative assets are included in other assets on the Consolidated Statements of Financial Condition. (2) Derivatives liabilities are included in other liabilities on the Consolidated Statements of Financial Condition. |
Offsetting of Derivatives | The following tables present the derivatives subject to a master netting arrangement. Gross Amounts Not Offset in the Statement of Financial Position Gross Amount Gross Amounts Offset in the Statement of Financial Position Net Amount Presented in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (1) (Dollars in millions) September 30, 2015 Derivatives designated as hedging instruments: Liabilities Interest Rate Swaps on FHLB advances $ — $ — $ — $ — $ (8 ) $ 8 Derivatives not designated as hedging instruments: Assets Swap futures $ 6 $ — $ 6 $ — $ 3 $ 3 U.S. Treasury swap and euro dollar futures — 2 (2 ) — (2 ) — Mortgage backed securities forwards 37 — 37 — 35 2 Interest rate swaps and swaptions 17 — 17 — 2 15 Total derivative assets $ 60 $ 2 $ 58 $ — $ 38 $ 20 Liabilities Swap Futures $ 1 $ — $ 1 $ — $ — $ 1 Interest rate swaps and swaptions 18 — 18 — 8 10 Total derivative liabilities $ 19 $ — $ 19 $ — $ 8 $ 11 December 31, 2014 Derivatives not designated as hedging instruments: Assets U.S. Treasury swap and euro dollar futures $ 18 $ 1 $ 17 $ — $ 10 $ 7 Mortgage backed securities forwards 26 — 26 — 24 2 Interest rate swaps 8 — 8 — 2 6 Total derivative assets $ 52 $ 1 $ 51 $ — $ 36 $ 15 Liabilities Interest rate swaps $ 6 $ — $ 6 $ — $ — $ 6 (1) Includes gross amounts for items not netted in the Company's Consolidated Statements of Financial Condition. |
Federal Home Loan Bank Advanc35
Federal Home Loan Bank Advances (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of FHLB Advances, by Interest Rate Type | The following is a breakdown of the advances outstanding. September 30, 2015 December 31, 2014 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 824 0.18 % $ 214 0.26 % LIBOR adjustable advances long-term 225 0.46 % — — % Long-term fixed rate term advances 975 1.54 % 300 1.36 % Total $ 2,024 0.86 % $ 514 0.90 % |
Schedule of FHLB Advances, Disclosures | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Maximum outstanding at any month end $ 2,127 $ 1,000 $ 2,198 $ 1,300 Average outstanding balance 1,795 998 1,597 995 Average remaining borrowing capacity 1,738 2,026 1,711 1,832 Weighted-average interest rate 1.17 % 0.23 % 1.05 % 0.23 % |
Schedule of FHLB, Advances, Maturity Summary | The following outlines the Company’s Federal Home Loan Bank advance final maturity dates as of September 30, 2015 . September 30, 2015 (Dollars in millions) 2015 $ 824 2016 175 2017 50 2018 125 Thereafter 850 Total $ 2,024 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following table presents the carrying value on each junior subordinated note and VIE, along with the related interest rates of the long-term debt as of the dates indicated. September 30, 2015 December 31, 2014 (Dollars in millions) Trust Preferred Securities Floating Three Month LIBOR Plus 3.25%, matures 2032 $ 26 3.58 % $ 26 3.50 % Plus 3.25%, matures 2033 26 3.54 % 26 3.48 % Plus 3.25%, matures 2033 26 3.53 % 26 3.51 % Plus 2.00%, matures 2035 26 2.29 % 26 2.23 % Plus 2.00%, matures 2035 26 2.29 % 26 2.23 % Plus 1.75%, matures 2035 51 2.09 % 51 1.99 % Plus 1.50%, matures 2035 25 1.79 % 25 1.73 % Plus 1.45%, matures 2037 25 1.79 % 25 1.69 % Plus 2.50%, matures 2037 16 2.84 % 16 2.74 % Subtotal $ 247 $ 247 Notes associated with consolidated VIEs Floating One Month LIBOR Plus 0.46% (1) , matures 2018 (3) — 42 Plus 0.16% (2) , matures 2019 (4) 32 42 Total long-term debt $ 279 $ 331 (1) The Note accrued interest at a rate equal to the least of (i) one month LIBOR plus 0.46 percent (ii) the net weighted average coupon, and (iii) 16.00 percent . (2) The interest rate for the notes may adjust monthly and will be subject to (i) a cap based on the weighted average of the loan rates on the mortgage loans, minus the rates at which certain fees and expenses of the issuing entity are calculated and minus any required spread and adjusted for actual days and (ii) a fixed cap of 16.00 percent . (3) In June 2015, the Company exercised a clean-up of the outstanding debt. The par value for the debt was $43 million at December 31, 2014 . (4) The par value for the debt was $33 million and $45 million , respectively, at September 30, 2015 and December 31, 2014 . |
Representation and Warranty R37
Representation and Warranty Reserve (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Representation and Warranty Reserve Disclosures [Abstract] | |
Schedule of Representation and Warranty Reserve Activity | The following table shows the activity impacting the representation and warranty reserve. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Balance, beginning of period $ 48 $ 50 $ 53 $ 54 Provision Charged to gain on sale for current loan sales 2 2 6 5 Charged to representation and warranty reserve - change in estimate (6 ) 13 (13 ) 16 Total (4 ) 15 (7 ) 21 Charge-offs, net 1 (8 ) (1 ) (18 ) Balance, end of period $ 45 $ 57 $ 45 $ 57 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | Preferred stock with a par value of $0.01 and a liquidation value of $1,000 and additional paid in capital attributable to preferred stock at September 30, 2015 is summarized as follows. Rate Earliest Redemption Date Shares Outstanding Preferred Shares Additional Paid in Capital (Dollars in millions) Series C Preferred Stock 9.0 % 1/31/2012 266,657 $ — $ 267 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table sets forth the components in accumulated other comprehensive income (loss) for investment securities available-for-sale, investment securities held-to-maturity and cash flow hedges. Held-to-Maturity Securities Available-for-Sale Securities Cash Flow Hedges (Dollars in millions) Accumulated other comprehensive income (loss) Balance at December 31, 2014, net of tax $ — $ 8 $ — Net unrealized loss, net of tax — 9 (5 ) Transfer of net unrealized loss from AFS to HTM 5 (5 ) — Balance at September 30, 2015, net of tax (1) $ 5 $ 12 $ (5 ) Balance at December 31, 2013, net of tax $ — $ (5 ) $ — Net unrealized gain, net of tax — 4 — Balance at September 30, 2014, net of tax (1) $ — $ (1 ) $ — (1) For the periods ended September 30, 2015 and 2014 , there were no reclassifications out of accumulated other comprehensive income (loss) into earnings. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted (loss) earnings per share of common stock. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions, except share data) Net income (loss) $ 47 $ (28 ) $ 125 $ (80 ) Less: preferred stock dividend/accretion — — — (1 ) Net income (loss) from continuing operations 47 (28 ) 125 (81 ) Deferred cumulative preferred stock dividends (8 ) (7 ) (22 ) (19 ) Net income (loss) applicable to common stock $ 39 $ (35 ) $ 103 $ (100 ) Weighted average shares Weighted average common shares outstanding 56,436,026 56,249,300 56,419,354 56,224,850 Effect of dilutive securities Warrants (1) 339,478 — 290,840 — Stock-based awards 431,999 — 340,595 — Weighted average diluted common shares 57,207,503 56,249,300 57,050,789 56,224,850 Earnings (loss) per common share Net income (loss) applicable to common stock $ 0.70 $ (0.61 ) $ 1.82 $ (1.79 ) Effect of dilutive securities Warrants — — (0.01 ) — Stock-based awards (0.01 ) — (0.01 ) — Diluted earnings (loss) per share $ 0.69 $ (0.61 ) $ 1.80 $ (1.79 ) (1) Includes the May warrants at an exercise price of $10.00 per share and a fair value of $8 million at September 30, 2015 . |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Provision (benefit) for income taxes $ 24 $ (10 ) $ 70 $ (38 ) Effective tax provision (benefit) rate 34.4 % (27.2 )% 36.0 % (32.3 )% |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Regulatory Capital Ratios | The following table shows the regulatory capital ratios as of the dates indicated. Bancorp Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2015 (1) Tangible capital (to tangible assets) $ 1,393 11.65 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,393 11.65 % $ 478 4.0 % $ 598 5.0 % Common equity Tier 1 capital (to RWA) 1,024 14.93 % 309 4.5 % 446 6.5 % Tier 1 capital (to risk-weighted assets) 1,393 20.32 % 411 6.0 % 549 8.0 % Total capital (to risk-weighted assets) 1,483 21.64 % 549 8.0 % 686 10.0 % December 31, 2014 Tangible capital (to tangible assets) $ 1,184 12.59 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,184 12.59 % $ 376 4.0 % $ 470 5.0 % Tier 1 capital (to risk-weighted assets) 1,184 22.81 % 208 4.0 % 311 6.0 % Total capital (to risk-weighted assets) 1,252 24.12 % 415 8.0 % 519 10.0 % N/A - Not applicable (1) On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. The Company and the Bank reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. Bank Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2015 (1) Tangible capital (to tangible assets) $ 1,426 11.91 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,426 11.91 % $ 479 4.0 % $ 599 5.0 % Common equity tier 1 capital (to RWA) 1,426 20.75 % 309 4.5 % 447 6.5 % Tier 1 capital (to risk-weighted assets) 1,426 20.75 % 412 6.0 % 550 8.0 % Total capital (to risk-weighted assets) 1,516 22.05 % 550 8.0 % 687 10.0 % December 31, 2014 Tangible capital (to tangible assets) $ 1,167 12.43 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,167 12.43 % $ 376 4.0 % $ 470 5.0 % Tier 1 capital (to risk-weighted assets) 1,167 22.54 % 207 4.0 % 311 6.0 % Total capital (to risk-weighted assets) 1,235 23.85 % 414 8.0 % 518 10.0 % (1) On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. The Company and the Bank reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. |
Legal Proceedings, Contingenc42
Legal Proceedings, Contingencies and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Amount of Significant Commitments | A summary of the contractual amount of significant commitments is as follows. September 30, 2015 December 31, 2014 (Dollars in millions) Commitments to extend credit Mortgage loans interest-rate lock commitments $ 4,314 $ 2,172 HELOC commitments 133 88 Other consumer commitments 25 7 Warehouse loan commitments 1,046 827 Standby and commercial letters of credit 14 10 Commercial and industrial commitments 297 276 Other commercial commitments 447 169 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the financial instruments carried at fair value as of September 30, 2015 and December 31, 2014 , by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy (as described above). Level 1 Level 2 Level 3 Total Fair Value September 30, 2015 (Dollars in millions) Investment securities available-for-sale Agency $ — $ 469 $ — $ 469 Agency-collateralized mortgage obligations — 668 — 668 Municipal obligations — 13 — 13 Loans held-for-sale Residential first mortgage loans — 2,164 — 2,164 Loans held-for-investment Residential first mortgage loans — 7 — 7 Second mortgage loans — — 45 45 HELOC loans — — 80 80 Mortgage servicing rights — — 294 294 Derivative assets Rate lock commitments — — 44 44 Swap futures — 3 — 3 U.S. Treasury and euro dollar futures 2 — — 2 Forward agency and loans sales — 1 — 1 Mortgage backed securities forwards 2 — — 2 Interest rate swaps and swaptions — 15 — 15 Total derivative assets 4 19 44 67 Other investments — — 100 100 Total assets at fair value $ 4 $ 3,340 $ 563 $ 3,907 Derivative liabilities U.S. Treasury and euro dollar futures $ (2 ) $ — $ — $ (2 ) Forward agency and loans sales — (29 ) — (29 ) Interest rate swap on FHLB advances (8 ) — — (8 ) Swap futures — (1 ) — (1 ) Interest rate swaps — (10 ) — (10 ) Total derivative liabilities (10 ) (40 ) — (50 ) Warrant liabilities — (8 ) — (8 ) Long-term debt — — (32 ) (32 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (10 ) $ (48 ) $ (116 ) $ (174 ) Level 1 Level 2 Level 3 Total Fair Value December 31, 2014 (Dollars in millions) Investment securities available-for-sale Agency $ — $ 929 $ — $ 929 Agency-collateralized mortgage obligations — 741 — 741 Municipal obligations — — 2 2 Loans held-for-sale Residential first mortgage loans — 1,196 — 1,196 Loans held-for-investment Residential first mortgage loans — 26 — 26 Second mortgage loans — — 53 53 HELOC loans — — 132 132 Mortgage servicing rights — — 258 258 Derivative assets U.S. Treasury and euro dollar futures 7 — — 7 Rate lock commitments — — 31 31 Mortgage backed securities forwards 2 — — 2 Interest rate swaps — 6 — 6 Total derivative assets 9 6 31 46 Other investments — — 100 100 Total assets at fair value $ 9 $ 2,898 $ 576 $ 3,483 Derivative liabilities Forward agency and loan sales $ — $ (13 ) $ — $ (13 ) U.S. Treasury and euro dollar futures (1 ) — — (1 ) Interest rate swaps — (6 ) — (6 ) Total derivative liabilities (1 ) (19 ) — (20 ) Warrant liabilities — (6 ) — (6 ) Long-term debt — — (84 ) (84 ) DOJ litigation settlement — — (82 ) (82 ) Total liabilities at fair value $ (1 ) $ (25 ) $ (166 ) $ (192 ) |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The tables below include a roll forward of the Consolidated Statement of Financial Condition amounts for the three and nine months ended September 30, 2015 and 2014 (including the change in fair value) for financial instruments classified by the Company within level 3 of the valuation hierarchy. Recorded in Earnings Recorded in OCI Three Months Ended September 30, 2015 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Transfers In (Out) Balance at End of Period Changes in Unrealized Gains / (Losses) Held at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 48 $ — $ — $ — $ — $ — $ (3 ) $ — $ 45 $ — HELOC loans 93 2 — — — — (15 ) — 80 1 Mortgage servicing rights 317 (24 ) — — 74 (73 ) — — 294 (14 ) Other investments 100 — — — — — — — 100 — Totals $ 558 $ (22 ) $ — $ — $ 74 $ (73 ) $ (18 ) $ — $ 519 $ (13 ) Liabilities Long-term debt $ (36 ) $ — $ — $ — $ — $ — $ 4 $ — $ (32 ) $ — DOJ litigation settlement (84 ) — — — — — — — (84 ) — Totals $ (120 ) $ — $ — $ — $ — $ — $ 4 $ — $ (116 ) $ — Derivative financial instruments (net) Rate lock commitments $ 30 $ 53 $ — $ — $ 81 $ (104 ) $ (16 ) $ — $ 44 $ 14 Three Months Ended September 30, 2014 Assets Investment securities available-for-sale Municipal obligation $ — $ — $ — $ — $ — $ — $ — $ 4 $ 4 $ — Loans held-for-investment Second mortgage loans $ 59 $ 1 $ — $ — $ — $ — $ (4 ) $ — $ 56 $ 1 HELOC loans 147 (1 ) 1 — — — (7 ) — 140 (8 ) Mortgage servicing rights 289 (13 ) — — 79 (70 ) — — 285 (5 ) Totals $ 495 $ (13 ) $ 1 $ — $ 79 $ (70 ) $ (11 ) $ 4 $ 485 $ (12 ) Liabilities Long-term debt $ (98 ) $ — $ (2 ) $ — $ — $ — $ 8 $ — $ (92 ) $ — DOJ litigation settlement (78 ) (2 ) — — — — — — (80 ) (2 ) Totals $ (176 ) $ (2 ) $ (2 ) $ — $ — $ — $ 8 $ — $ (172 ) $ (2 ) Derivative financial instruments (net) Rate lock commitments $ 51 $ 10 $ — $ — $ 66 $ (85 ) $ (15 ) $ — $ 27 $ 1 Recorded in Earnings Recorded in OCI Nine Months Ended September 30, 2015 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Transfers In (Out) Balance at End of Period Changes In Unrealized Held at End of Period Assets (Dollars in millions) Investment securities available-for-sale Municipal obligations $ 2 $ — $ — $ — $ — $ — $ (2 ) $ — $ — $ — Loans held-for-investment Second mortgage loans 53 2 1 — — — (11 ) — 45 1 HELOC loans 132 (4 ) — — — — (48 ) — 80 4 Mortgage servicing rights 258 (40 ) — — 220 (144 ) — — 294 (3 ) Other investments 100 — — — — — — — 100 — Totals $ 545 $ (42 ) $ 1 $ — $ 220 $ (144 ) $ (61 ) $ — $ 519 $ 2 Liabilities Long-term debt $ (84 ) $ — $ (3 ) $ — $ — $ 24 $ 31 $ — $ (32 ) $ — DOJ litigation (82 ) (2 ) — — — — — — (84 ) (2 ) Totals $ (166 ) $ (2 ) $ (3 ) $ — $ — $ 24 $ 31 $ — $ (116 ) $ (2 ) Derivative financial instruments (net) Rate lock commitments $ 31 $ 60 $ — $ — $ 272 $ (276 ) $ (43 ) $ — $ 44 $ 30 Nine Months Ended September 30, 2014 Assets Investment securities available-for-sale Municipal obligation $ — $ — $ — $ — $ — $ — $ — $ 4 $ 4 $ — Loans held-for-investment Second mortgage loans $ 65 $ 2 $ 1 $ — $ — $ — $ (12 ) $ — $ 56 $ 2 HELOC loans 155 (1 ) 1 — — — (15 ) — 140 (16 ) Mortgage servicing rights 285 (37 ) — — 198 (161 ) — — 285 (11 ) Totals $ 505 $ (36 ) $ 2 $ — $ 198 $ (161 ) $ (27 ) $ 4 $ 485 $ (25 ) Liabilities Long-term debt $ (106 ) $ — $ (5 ) $ — $ — $ — $ 19 $ — $ (92 ) $ — DOJ litigation (93 ) 13 — — — — — — (80 ) 13 Totals $ (199 ) $ 13 $ (5 ) $ — $ — $ — $ 19 $ — $ (172 ) $ 13 Derivative financial instruments (net) Rate lock commitments $ 10 $ 110 $ — $ — $ 203 $ (244 ) $ (52 ) $ — $ 27 $ 24 |
Fair Value Inputs, Assets and Liabilities Measured on Recurring Basis, Quantitative Information | The following tables present the quantitative information about recurring level 3 fair value financial instruments and the fair value measurements as of September 30, 2015 and December 31, 2014 . Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2015 (Dollars in millions) Assets Second mortgage loans $ 45 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) HELOC loans $ 80 Discounted cash flows Loss severity on defaulted balance 24.4% - 36.7% (30.6%) Mortgage servicing rights $ 294 Discounted cash flows Option adjusted spread 7.0% - 10.4% (8.7%) Liabilities Long-term debt $ (32 ) Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) DOJ litigation settlement $ (84 ) Discounted cash flows Asset growth rate 4.4% - 6.6% (5.5%) Derivative financial instruments Rate lock commitments $ 44 Consensus pricing Origination pull-through rate 65.3% - 97.9% (81.6%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 (Dollars in millions) Assets Second mortgage loans $ 53 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%) HELOC loans $ 132 Discounted cash flows Yield 8.0% - 12.0% (10.0%) Mortgage servicing rights $ 258 Discounted cash flows Option adjusted spread 7.1% - 10.7% (8.9%) Liabilities Long-term debt $ (84 ) Discounted cash flows Discount rate 6.4% - 9.6% (8.0%) DOJ litigation settlement $ (82 ) Discounted cash flows Asset growth rate 4.4% - 6.6% (5.5%) Derivative financial instruments Rate lock commitments $ 31 Consensus pricing Origination pull-through rate 66.2% - 99.3% (82.7%) |
Fair Value Inputs, Assets, Quantitative Information | The key economic assumptions used in determining the fair value of those MSRs capitalized during the three and nine months ended September 30, 2015 and 2014 periods were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted-average life (in years) 7.9 7.9 7.9 8.0 Weighted-average constant prepayment rate 11.0 % 12.0 % 11.2 % 11.8 % Weighted-average discount rate 10.9 % 11.7 % 10.8 % 12.0 % The key economic assumptions reflected in the overall fair value of the entire portfolio of MSRs were as follows. September 30, December 31, Weighted-average life (in years) 7.1 6.6 Weighted-average constant prepayment rate 13.3 % 15.0 % Weighted-average discount rate 10.4 % 10.9 % |
Fair Value Measurements, Nonrecurring | The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are measured at the lower of cost or fair value and had a fair value below cost at the end of the period as summarized below. Level 3 (1) (Dollars in millions) September 30, 2015 Impaired loans held-for-investment (2) Residential first mortgage loans $ 36 Commercial and industrial loans 3 Repossessed assets (3) 17 Totals $ 56 December 31, 2014 Impaired loans held-for-investment (2) Residential first mortgage loans $ 74 Repossessed assets (3) 19 Totals $ 93 (1) The fair values are obtained at various dates during the three months ended September 30, 2015 and December 31, 2014 , respectively. (2) The Company recorded $20 million and $76 million in fair value losses on impaired loans (included in provision for loan losses on Consolidated Statements of Operations) during the three and nine months ended September 30, 2015 , respectively, compared to $10 million and $38 million in fair value losses on impaired loans during the three and nine months ended September 30, 2014 , respectively. (3) The Company recorded $1 million and $2 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and nine months ended September 30, 2015 , respectively, and recognized net gain of $1 million and $2 million on sales of repossessed assets (both write downs and net gains/losses are included in assets resolution expense on the Consolidated Statements of Operations) during the three and nine months ended September 30, 2015 , respectively. The Company recorded $2 million and $4 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and nine months ended September 30, 2014 , respectively, and recognized net gains of $1 million and $4 million on sales of repossessed assets during the three and nine months ended September 30, 2014 , respectively. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following tables present the quantitative information about non-recurring level 3 fair value financial instruments and the fair value measurements as of September 30, 2015 and December 31, 2014 . Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2015 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 36 Fair value of collateral Loss severity discount 35% - 45% (41.4%) Commercial and industrial loans $ 3 Fair value of collateral Loss severity discount 40% - 50% (50.1%) Repossessed assets $ 17 Fair value of collateral Loss severity discount 0% - 100% (39.5%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 74 Fair value of collateral Loss severity discount 35% - 47% (36.9%) Repossessed assets $ 19 Fair value of collateral Loss severity discount 7% - 100% (45.4%) |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying amount of financial instruments measured at either fair value, historical cost or amortized cost and the estimated fair value of those financial instruments. September 30, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 195 $ 195 $ 195 $ — $ — Investment securities available-for-sale 1,150 1,150 — 1,150 — Investment securities held-to-maturity 1,108 1,118 — 1,118 — Loans held-for-sale 2,408 2,164 — 2,164 — Loans with government guarantees 509 494 — 494 — Loans held-for-investment, net 5,317 5,307 — 7 5,300 Repossessed assets 17 17 — — 17 Federal Home Loan Bank stock 113 113 — 113 — Mortgage servicing rights 294 294 — — 294 Bank owned life insurance 176 176 — 176 — Other investments 100 100 — — 100 Other assets, foreclosure claims 231 231 — 231 — Derivative Financial Instruments U.S. Treasury and euro dollar futures 2 2 2 — — Rate lock commitments 44 44 — — 44 Swap futures 3 3 — 3 — Mortgage back securities forwards 2 2 2 — — Forward agency and loan sales 1 1 — 1 — Interest rate swaps and swaptions 15 15 — 15 — Liabilities Retail deposits Demand deposits and savings accounts (4,850 ) (4,643 ) — (4,643 ) — Certificates of deposit (813 ) (816 ) — (816 ) — Government deposits (1,207 ) (1,189 ) — (1,189 ) — Company controlled deposits (1,267 ) (1,179 ) — (1,179 ) — Federal Home Loan Bank advances (2,024 ) (2,027 ) — (2,027 ) — Long-term debt (279 ) (117 ) — (85 ) (32 ) Warrant liabilities (8 ) (8 ) — (8 ) — Litigation settlement (84 ) (84 ) — — (84 ) Derivative Financial Instruments U.S. Treasury and euro dollar futures (2 ) (2 ) (2 ) — — Interest rate swap on FHLB advances (8 ) (8 ) (8 ) — — Swap futures (1 ) (1 ) — (1 ) — Forward agency and loan sales (29 ) (29 ) — (29 ) — Interest rate swaps (10 ) (10 ) — (10 ) — December 31, 2014 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 136 $ 136 $ 136 $ — $ — Investment securities available-for-sale 1,672 1,672 — 1,670 2 Loans held-for-sale 1,244 1,196 — 1,196 — Loans with government guarantees 1,128 1,094 — 1,094 — Loans held-for-investment, net 4,151 3,998 — 26 3,972 Repossessed assets 19 19 — — 19 Federal Home Loan Bank stock 155 155 155 — — Mortgage servicing rights 258 258 — — 258 Other investments 100 100 — — 100 Derivative Financial Instruments Interest rate swaps 6 6 — 6 — U.S. Treasury futures 7 7 7 — — Rate lock commitments 31 31 — — 31 Agency forwards 2 2 2 — — Liabilities Retail deposits Demand deposits and savings accounts (4,565 ) (4,291 ) — (4,291 ) — Certificates of deposit (813 ) (816 ) — (816 ) — Government deposits (918 ) (884 ) — (884 ) — Company controlled deposits (773 ) (770 ) — (770 ) — Federal Home Loan Bank advances (514 ) (514 ) (514 ) — — Long-term debt (331 ) (172 ) — (88 ) (84 ) Warrant liabilities (6 ) (6 ) — (6 ) — Litigation settlement (82 ) (82 ) — — (82 ) Derivative Financial Instruments Interest rate swaps (6 ) (6 ) — (6 ) — U.S. Treasury futures (1 ) (1 ) (1 ) — — Forward agency and loan sales (13 ) (13 ) — (13 ) — |
Schedule of Changes in Fair Value Included in Earnings | The following table reflects the change in fair value included in earnings of financial instruments for which the value option has been elected. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Assets (Dollars in millions) Loans held-for-sale Net gain on loan sales $ 134 $ 80 $ 276 $ 269 Other noninterest income — — — (1 ) Loans held-for-investment Interest income on loans $ 1 $ — $ 4 $ — Other noninterest income (1 ) (6 ) (35 ) (35 ) Liabilities Long-term debt Other noninterest income $ 3 $ 6 $ 28 $ 14 Litigation settlement Other noninterest expense $ — $ (2 ) 2 $ 13 |
Fair Value, Option, Quantitative Disclosures | The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding as of September 30, 2015 and December 31, 2014 for assets and liabilities for which the fair value option has been elected. September 30, 2015 December 31, 2014 (Dollars in millions) Unpaid Principal Balance Fair Value Fair Value Over / (Under) Unpaid Principal Balance Unpaid Principal Balance Fair Value Fair Value Over / (Under) Unpaid Principal Balance Assets Nonaccrual loans Loans held-for-investment $ 19 $ 9 $ (10 ) $ 11 $ 5 $ (6 ) Total nonaccrual loans $ 19 $ 9 $ (10 ) $ 11 $ 5 $ (6 ) Other performing loans Loans held-for-sale $ 2,060 $ 2,164 $ 104 $ 1,144 $ 1,196 $ 52 Loans held-for-investment 136 123 (13 ) 225 206 (19 ) Total other performing loans $ 2,196 $ 2,287 $ 91 $ 1,369 $ 1,402 $ 33 Total loans Loans held-for-sale $ 2,060 $ 2,164 $ 104 $ 1,144 $ 1,196 $ 52 Loans held-for-investment 155 132 (23 ) 236 211 (25 ) Total loans $ 2,215 $ 2,296 $ 81 $ 1,380 $ 1,407 $ 27 Liabilities Long-term debt $ (33 ) $ (32 ) $ 1 $ (88 ) $ (84 ) $ 4 Litigation settlement (1) $ (118 ) (84 ) $ 34 $ (118 ) (82 ) $ 36 (1) The Company is obligated to pay $118 million in installment payments upon meeting certain performance conditions. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present financial information by business segment for the periods indicated. Three Months Ended September 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 19 $ 4 $ 44 $ 6 $ 73 Net gain (loss) on loan sales 72 — (4 ) — 68 Representation and warranty reserve - change in estimate (4 ) 10 — — 6 Other noninterest income 17 14 12 11 54 Total net interest income and noninterest income 104 28 52 17 201 Benefit for loan losses — — 1 — 1 Asset resolution — — — — — Depreciation and amortization expense (1 ) (1 ) (1 ) (9 ) (12 ) Other noninterest expense (47 ) (37 ) (38 ) 3 (119 ) Total noninterest expense (48 ) (38 ) (39 ) (6 ) (131 ) Income (loss) before federal income taxes 56 (10 ) 14 11 71 Provision for federal income taxes — — — 24 24 Net income (loss) $ 56 $ (10 ) $ 14 $ (13 ) $ 47 Intersegment revenue $ 15 $ (5 ) $ (4 ) $ (6 ) $ — Average balances Loans held-for-sale $ 2,179 $ — $ 21 $ — $ 2,200 Loans with government guarantees — 547 — — 547 Loans held-for-investment 4 — 5,348 60 5,412 Total assets 2,337 860 5,336 3,772 12,305 Deposits — 1,487 6,773 — 8,260 Three Months Ended September 30, 2014 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 16 $ 6 $ 38 $ 4 $ 64 Net gain on loan sales 52 — — — 52 Representation and warranty reserve - change in estimate (11 ) (2 ) — — (13 ) Other noninterest income 17 12 14 3 46 Total net interest income and noninterest income 74 16 52 7 149 Provision for loan losses — — (8 ) — (8 ) Asset resolution — (13 ) (1 ) — (14 ) Depreciation and amortization expense — (2 ) (1 ) (3 ) (6 ) Other noninterest expense (59 ) (56 ) (41 ) (3 ) (159 ) Total noninterest expense (59 ) (71 ) (43 ) (6 ) (179 ) Income (loss) before federal income taxes 15 (55 ) 1 1 (38 ) Benefit for federal income taxes — — — (10 ) (10 ) Net income (loss) $ 15 $ (55 ) $ 1 $ 11 $ (28 ) Intersegment revenue $ 2 $ 4 $ — $ (6 ) $ — Average balances Loans held-for-sale $ 1,590 $ — $ 39 $ — $ 1,629 Loans with government guarantees — 1,215 — — 1,215 Loans held-for-investment — — 4,088 — 4,088 Total assets 1,747 1,358 4,005 3,143 10,253 Deposits — 865 6,182 — 7,047 Nine Months Ended September 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 54 $ 11 $ 126 $ 20 $ 211 Net gain (loss) on loan sales 255 — (13 ) — 242 Representation and warranty reserve - change in estimate (3 ) 16 — — 13 Other noninterest income (loss) 52 41 19 6 118 Total net interest income and noninterest income 358 68 132 26 584 Benefit for loan losses — — 18 — 18 Asset resolution — (12 ) (1 ) — (13 ) Depreciation and amortization expense (2 ) (2 ) (4 ) (28 ) (36 ) Other noninterest expense (156 ) (96 ) (116 ) 10 (358 ) Total noninterest expense (158 ) (110 ) (121 ) (18 ) (407 ) Income (loss) before federal income taxes 200 (42 ) 29 8 195 Provision for federal income taxes — — — 70 70 Net income (loss) $ 200 $ (42 ) $ 29 $ (62 ) $ 125 Intersegment revenue $ 18 $ 1 $ (9 ) $ (10 ) $ — Average balances Loans held-for-sale $ 2,052 $ — $ 36 $ — $ 2,088 Loans with government guarantees — 679 — — 679 Loans held-for-investment 3 — 4,786 96 4,885 Total assets 2,194 1,004 4,753 3,712 11,663 Deposits — 1,189 6,602 — 7,791 Nine Months Ended September 30, 2014 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 42 $ 17 $ 111 $ 15 $ 185 Net gain (loss) on loan sales 155 — (3 ) — 152 Representation and warranty reserve - change in estimate (10 ) (6 ) — — (16 ) Other noninterest income 42 47 13 25 127 Total net interest income and noninterest income 229 58 121 40 448 Provision for loan losses — — (127 ) — (127 ) Asset resolution — (41 ) (2 ) — (43 ) Depreciation and amortization expense (1 ) (4 ) (4 ) (8 ) (17 ) Other noninterest expense (159 ) (92 ) (119 ) (9 ) (379 ) Total noninterest expense (160 ) (137 ) (125 ) (17 ) (439 ) Income (loss) before federal income taxes 69 (79 ) (131 ) 23 (118 ) Benefit for federal income taxes — — — (38 ) (38 ) Net income (loss) $ 69 $ (79 ) $ (131 ) $ 61 $ (80 ) Intersegment revenue $ 7 $ 14 $ (3 ) $ (18 ) $ — Average balances Loans held-for-sale $ 1,407 $ — $ 75 $ — $ 1,482 Loans with government guarantees — 1,241 — — 1,241 Loans held-for-investment — — 3,956 — 3,956 Total assets 1,559 1,379 3,945 2,913 9,796 Deposits — 723 5,873 — 6,596 |
Restatement of Consolidated S45
Restatement of Consolidated Statements of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Restatement of Consolidated Statements of Cash Flows | The Company has included the comparison of the as stated and restated amounts for the period ended September 30, 2014 , herein. Nine Months Ended September 30, 2014 (Unaudited) (Unaudited) As Restated As Reported Operating Activities Net loss $ (80 ) $ (80 ) Adjustments to reconcile net loss to net cash used in operating activities: Provision for loan losses 127 127 Representation and warranty provision 16 16 Depreciation and amortization 18 18 Loss on fair value of mortgage servicing rights * 36 Loss on fair value of long-term debt * 5 Deferred income taxes (35 ) * Net gain on loan and asset sales (163 ) (167 ) Change in fair value and other non-cash changes (150 ) * Net gain on investment securities * (3 ) Net change in: Proceeds from sales of loans held-for-sale ("HFS") 12,610 13,249 Origination, premium paid and repurchase of loans, net of principal repayments (18,225 ) (18,927 ) Decrease in repurchase loans with government guarantees, net of claims received * 82 Increase in accrued interest receivable (12 ) (12 ) Increase in other assets, excludes purchase of other investments (82 ) (103 ) Increase in payable for mortgage repurchase option * (17 ) Net charge-offs in representation and warranty reserve (18 ) (18 ) Increase in other liabilities 35 20 Net cash used in operating activities (5,959 ) (5,774 ) Investing Activities Proceeds from sale of available-for-sale securities including loans that have been securitized 6,532 * Proceeds received from sale of investment securities available-for-sale * 6,317 Collection of principal on investment securities available-for-sale 118 * Repayment of investment securities available-for-sale * 118 Purchase of investment securities available-for-sale and other (756 ) (755 ) Proceeds received from the sale of held-for-investment loans ("HFI") 62 * Origination and purchase of loans HFI, net of principal repayments (623 ) * Net change from sales of loans held-for-investment * (369 ) Principal repayments net of origination of loans held-for-investment * (150 ) Proceeds from the disposition of repossessed assets 30 30 Acquisitions of premises and equipment, net of proceeds (26 ) (26 ) Proceeds from the sale of mortgage servicing rights 168 155 Net cash provided by investing activities 5,505 5,320 Financing Activities Net increase in deposit accounts 1,094 1,094 Net increase in Federal Home Loan Bank Advances * (838 ) Proceeds from increases in Federal Home Loan Bank Advances 13,633 * Repayment of Federal Home Loan Bank advances (14,471 ) * Repayment of trust preferred securities and long-term debt (19 ) (19 ) Net receipt of payments of loans serviced for others 39 39 Net receipt of escrow payments 4 4 Net cash provided by financing activities 280 280 Net decrease in cash and cash equivalents (174 ) (174 ) Beginning cash and cash equivalents 281 281 Ending cash and cash equivalents $ 107 $ 107 Supplemental disclosure of cash flow information Interest paid on deposits and other borrowings $ 23 $ 23 Income tax refund $ (1 ) $ — Non-cash reclassification of loans HFI to loans HFS $ 384 $ 384 Non-cash reclassification of mortgage loans HFS to HFI $ 15 $ 15 Non-cash reclassification of mortgage loans HFS to AFS securities $ 6,234 * Mortgage servicing rights resulting from sale or securitization of loans $ 198 $ 198 Loans held-for-investment transferred to repossessed assets * $ 49 * Line item caption changes. Activity has been reported under a new caption. |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Unrealized gain (loss) on investment securities available-for-sale | ||
Amortized Cost | $ 1,133 | $ 1,661 |
Gross Unrealized Gains | 18 | 14 |
Gross Unrealized Losses | (1) | (3) |
Fair Value | 1,150 | 1,672 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 1,108 | 0 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,118 | |
Agency | ||
Unrealized gain (loss) on investment securities available-for-sale | ||
Amortized Cost | 463 | 925 |
Gross Unrealized Gains | 7 | 6 |
Gross Unrealized Losses | (1) | (2) |
Fair Value | 469 | 929 |
Agency-collateralized mortgage obligations | ||
Unrealized gain (loss) on investment securities available-for-sale | ||
Amortized Cost | 657 | 734 |
Gross Unrealized Gains | 11 | 8 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 668 | 741 |
Municipal obligations | ||
Unrealized gain (loss) on investment securities available-for-sale | ||
Amortized Cost | 13 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 13 | $ 2 |
Agency | ||
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 445 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 0 | |
Fair Value | 449 | |
Agency-collateralized mortgage obligations | ||
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 663 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 669 |
Investment Securities (Availabl
Investment Securities (Available-for-sale and Held-to-maturity Securities, Unrealized Losses) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)security | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)security | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Purchase of investment securities available-for-sale | $ 783,000,000 | ||||
Non-cash reclassification of investments AFS to HTM | $ 1,100,000,000 | 1,136,000,000 | |||
Sales of available-for-sale securities | 6,603,000,000 | ||||
Gain on available-for-sale securities | $ 2,000,000 | $ 3,000,000 | |||
Transfer of Available-for-sale Securities to Held-to-maturity, Premium | 8,000,000 | ||||
Held-to-maturity Securities, Unrealized Holding Gain | 5,000,000 | ||||
Payments to Acquire Held-to-maturity Securities | 10,000,000 | 10,000,000 | 0 | ||
Maturities of held-to-maturity securities | 25,000,000 | 25,000,000 | |||
US Government-sponsored Enterprises Debt Securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Purchase of investment securities available-for-sale | 59,000,000 | 86,000,000 | 783,000,000 | 762,000,000 | |
Non-cash reclassification of investments AFS to HTM | 462,000,000 | ||||
Agency | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Fair Value | $ 8,000,000 | $ 8,000,000 | $ 53,000,000 | ||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Securities | security | 2 | 2 | 6 | ||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Unrealized Loss | $ 0 | $ 0 | $ 0 | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 87,000,000 | $ 87,000,000 | $ 305,000,000 | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Securities | security | 7 | 7 | 21 | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ (1,000,000) | $ (1,000,000) | $ (2,000,000) | ||
Agency-collateralized mortgage obligations | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Fair Value | $ 0 | $ 0 | $ 98,000,000 | ||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Securities | security | 0 | 0 | 10 | ||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Unrealized Loss | $ 0 | $ 0 | $ (1,000,000) | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 42,000,000 | $ 42,000,000 | $ 38,000,000 | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Securities | security | 3 | 3 | 4 | ||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ 0 | $ 0 | $ 0 | ||
U.S. government sponsored agencies | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Sales of available-for-sale securities | 0 | $ 255,000,000 | 0 | $ 314,000,000 | |
Agency | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months and Over, Fair Value | $ 0 | $ 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Positions | security | 0 | 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months or Over, Unrealized Loss | $ 0 | $ 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 10,000,000 | $ 10,000,000 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Positions | security | 1 | 1 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ 0 | $ 0 |
Investment Securities (Contract
Investment Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investment Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less, amortized cost | $ 0 | |
Due after one year through five years, amortized cost | 0 | |
Due after five years through 10 years, amortized cost | 13 | |
Due after 10 years, amortized cost | 1,120 | |
Total, amortized cost | 1,133 | |
Investment Securities Available-for-Sale, Estimated Fair Value | ||
Due in one year or less, fair value | 0 | |
Due after one year through five years, fair value | 0 | |
Due after five years through 10 years, fair value | 13 | |
Due after 10 years, fair value | 1,137 | |
Fair Value | $ 1,150 | $ 1,672 |
Investment Securities Available-for-Sale, Weighted-Average Yield | ||
Due in one year or less, weighted average yield (as a percent) | 0.00% | |
Due after one year through five years, weighted average yield (as a percent) | 0.00% | |
Due after five years through ten years, weighted average yield (as a percent) | 4.60% | |
Due after ten years, weighted average yield (as a percent) | 2.50% | |
Investment Securities Held-to-maturity, Amortized cost | ||
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | $ 0 | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 0 | |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 69 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 1,039 | |
Amortized Cost | 1,108 | $ 0 |
Investment Securities Held-to-maturity, Estimated Fair Value | ||
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value | 0 | |
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value | 0 | |
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value | 69 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value | 1,049 | |
Held-to-maturity Securities, Fair Value | $ 1,118 | |
Investment Securities Held-to-maturity, Weighted-Average Yield | ||
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Weighted Average Yield | 0.00% | |
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Weighted Average Yield | 0.00% | |
Held-to-Maturity Securities, Debt Maturities, Year Six Through Ten, Weighted Average Yield | 2.43% | |
Held-to-maturity Securities, Debt Maturities, After Ten Years, Weighted Average Yield | 2.44% |
Loans Held-for-Sale (Details)
Loans Held-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 2,408 | $ 2,408 | $ 1,244 | ||
Gain on sale of mortgage loans | 68 | $ 52 | 242 | $ 152 | |
Loans held-for-sale, other | 243 | 243 | 48 | ||
Consumer loans | Residential First Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 2,400 | $ 2,400 | $ 1,200 |
Loans with Government Guarant50
Loans with Government Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt instrument, term (in years) | 10 years | |
Loans with government guarantees | $ 509 | $ 1,128 |
Non-cash reclassification of loans with government guarantee to other assets | $ 231 | |
Accounting Standards Update 2014-14 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-cash reclassification of loans with government guarantee to other assets | $ 373 |
Loans Held-for-Investment (Deta
Loans Held-for-Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | $ 5,514 | $ 5,514 | $ 4,448 | ||||||
Less allowance for loan losses | (197) | (197) | (297) | ||||||
Total loans held-for-investment, net | 5,317 | 5,317 | 4,151 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 27 | $ 15 | 90 | $ 41 | |||||
Residential First Mortgage | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 2,726 | 2,726 | 2,193 | ||||||
Unpaid principal balance | 19 | $ 70 | $ 291 | 19 | |||||
Gain (loss) on sale from transfer of loans to held-for-sale (less than for the $1 million TDR in the first quarter) | (1) | (1) | 5 | $ 4 | $ 1 | ||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 21 | 12 | 80 | 29 | |||||
Second mortgage | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 140 | 140 | 149 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 1 | 1 | 2 | 3 | |||||
HELOC loans | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 405 | 405 | 257 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 1 | 1 | 2 | 5 | |||||
Purchase of HELOC loans | 197 | 197 | |||||||
Premium on HELOC loans | 7 | 7 | |||||||
Other | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 32 | 32 | 31 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 1 | 1 | 3 | 2 | |||||
Consumer loans | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 3,303 | 3,303 | 2,630 | ||||||
Commercial real estate | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 707 | 707 | 620 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 0 | 0 | 2 | |||||
Commercial and industrial | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 493 | 493 | 429 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 3 | 0 | 3 | 0 | |||||
Warehouse lending | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 1,011 | 1,011 | 769 | ||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 0 | 0 | 0 | |||||
Commercial loans | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Total Investment Loans | 2,211 | 2,211 | 1,818 | ||||||
Residential First Mortgage | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Receivables Held-for-sale, Amount | 214 | 386 | 331 | 81 | $ 234 | 313 | 214 | $ 81 | |
Gain (loss) on sale from transfer of loans to held-for-sale (less than for the $1 million TDR in the first quarter) | 1 | ||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 16 | $ 15 | 36 | $ 5 | $ 2 | ||||
Reserve Amount | $ 30 | ||||||||
Loans held-for-investment | |||||||||
Loans and Leases Receivable, Net Amount [Abstract] | |||||||||
Loans pledged as collateral | $ 5,200 | $ 5,200 | $ 4,100 |
Loans Held-for-Investment (Allo
Loans Held-for-Investment (Allowance for Loan Losses Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | $ 222 | $ 297 | $ 306 | $ 207 | $ 297 | $ 207 | |
Charge-offs | (27) | (15) | (90) | (41) | |||
Recoveries | 3 | 2 | 8 | 8 | |||
Provision (benefit) | (1) | 8 | (18) | 127 | |||
Ending balance allowance for loan losses | 197 | $ 222 | 301 | 197 | 301 | ||
Charge-offs related to sale of loans | 16 | 6 | 67 | 8 | |||
Residential First Mortgage | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 151 | 234 | 249 | 162 | 234 | 162 | |
Charge-offs | (21) | (12) | (80) | (29) | |||
Recoveries | 1 | 1 | 3 | 3 | |||
Provision (benefit) | (2) | 2 | (28) | 104 | |||
Ending balance allowance for loan losses | 129 | 151 | 240 | 129 | 240 | ||
Second mortgage | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 14 | 12 | 14 | 12 | 12 | 12 | |
Charge-offs | (1) | (1) | (2) | (3) | |||
Recoveries | 1 | 0 | 1 | 0 | |||
Provision (benefit) | (1) | (1) | 2 | 3 | |||
Ending balance allowance for loan losses | 13 | 14 | 12 | 13 | 12 | ||
HELOC commitments | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 25 | 19 | 14 | 8 | 19 | 8 | |
Charge-offs | (1) | (1) | (2) | (5) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision (benefit) | (1) | 6 | 6 | 16 | |||
Ending balance allowance for loan losses | 23 | 25 | 19 | 23 | 19 | ||
Other Consumer | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 1 | 1 | 2 | 2 | 1 | 2 | |
Charge-offs | (1) | (1) | (3) | (2) | |||
Recoveries | 1 | 1 | 2 | 2 | |||
Provision (benefit) | 0 | 0 | 1 | 0 | |||
Ending balance allowance for loan losses | 1 | 1 | 2 | 1 | 2 | ||
Commercial real estate | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 15 | 17 | 19 | 19 | 17 | 19 | |
Charge-offs | 0 | 0 | 0 | (2) | |||
Recoveries | 0 | 0 | 2 | 3 | |||
Provision (benefit) | (2) | 2 | (6) | 1 | |||
Ending balance allowance for loan losses | 13 | 15 | 21 | 13 | 21 | ||
Commercial and industrial | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 12 | 11 | 5 | 3 | 11 | 3 | |
Charge-offs | (3) | 0 | (3) | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision (benefit) | 5 | 0 | 6 | 2 | |||
Ending balance allowance for loan losses | 14 | 12 | 5 | 14 | 5 | ||
Warehouse lending | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance allowance for loan losses | 4 | 3 | 3 | 1 | 3 | 1 | |
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provision (benefit) | 0 | (1) | 1 | 1 | |||
Ending balance allowance for loan losses | 4 | 4 | 2 | $ 4 | $ 2 | ||
Residential First Mortgage | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Charge-offs | $ (16) | $ (15) | $ (36) | $ (5) | $ (2) |
Loans Held-for-Investment (Al53
Loans Held-for-Investment (Allowance Additional Disclosure) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | $ 112 | $ 417 | ||||
Collectively evaluated | 5,270 | 3,820 | ||||
Total loans | 5,382 | 4,237 | ||||
Individually evaluated | 29 | 88 | ||||
Collectively evaluated | 168 | 209 | ||||
Total allowance for loan losses | 197 | $ 222 | 297 | $ 301 | $ 306 | $ 207 |
Residential First Mortgage | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 77 | 385 | ||||
Collectively evaluated | 2,642 | 1,782 | ||||
Total loans | 2,719 | 2,167 | ||||
Individually evaluated | 21 | 82 | ||||
Collectively evaluated | 108 | 152 | ||||
Total allowance for loan losses | 129 | 151 | 234 | 240 | 249 | 162 |
Second mortgage | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 29 | 31 | ||||
Collectively evaluated | 66 | 65 | ||||
Total loans | 95 | 96 | ||||
Individually evaluated | 7 | 5 | ||||
Collectively evaluated | 6 | 7 | ||||
Total allowance for loan losses | 13 | 14 | 12 | 12 | 14 | 12 |
HELOC commitments | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 3 | 1 | ||||
Collectively evaluated | 322 | 124 | ||||
Total loans | 325 | 125 | ||||
Individually evaluated | 1 | 1 | ||||
Collectively evaluated | 22 | 18 | ||||
Total allowance for loan losses | 23 | 25 | 19 | 19 | 14 | 8 |
Other Consumer | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 32 | 31 | ||||
Total loans | 32 | 31 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 1 | 1 | ||||
Total allowance for loan losses | 1 | 1 | 1 | 2 | 2 | 2 |
Commercial real estate | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 707 | 620 | ||||
Total loans | 707 | 620 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 13 | 17 | ||||
Total allowance for loan losses | 13 | 15 | 17 | 21 | 19 | 19 |
Commercial and industrial | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 3 | 0 | ||||
Collectively evaluated | 490 | 429 | ||||
Total loans | 493 | 429 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 14 | 11 | ||||
Total allowance for loan losses | 14 | 12 | 11 | 5 | 5 | 3 |
Warehouse lending | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 1,011 | 769 | ||||
Total loans | 1,011 | 769 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 4 | 3 | ||||
Total allowance for loan losses | $ 4 | $ 4 | $ 3 | $ 2 | $ 3 | $ 1 |
Loans Held-for-Investment (Past
Loans Held-for-Investment (Past Due Loans) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loans, Aging [Abstract] | |||||
Total Past Due | $ 84,000,000 | $ 84,000,000 | $ 164,000,000 | ||
Current | 5,430,000,000 | 5,430,000,000 | 4,284,000,000 | ||
Total Investment Loans | 5,514,000,000 | 5,514,000,000 | 4,448,000,000 | ||
Loans greater than 90 days past due accounted for under the fair value option | 9,000,000 | 9,000,000 | 5,000,000 | ||
Nonaccrual status | 77,000,000 | $ 122,000,000 | 77,000,000 | $ 122,000,000 | 135,000,000 |
Accrued interest on nonaccrual loans | 1,000,000 | $ 2,000,000 | 4,000,000 | $ 4,000,000 | |
90 Days and Still Accruing | 0 | 0 | 0 | ||
Residential First Mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 64,000,000 | 64,000,000 | 152,000,000 | ||
Current | 2,662,000,000 | 2,662,000,000 | 2,041,000,000 | ||
Total Investment Loans | 2,726,000,000 | 2,726,000,000 | 2,193,000,000 | ||
Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 2,000,000 | 2,000,000 | 4,000,000 | ||
Current | 138,000,000 | 138,000,000 | 145,000,000 | ||
Total Investment Loans | 140,000,000 | 140,000,000 | 149,000,000 | ||
HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 14,000,000 | 14,000,000 | 8,000,000 | ||
Current | 391,000,000 | 391,000,000 | 249,000,000 | ||
Total Investment Loans | 405,000,000 | 405,000,000 | 257,000,000 | ||
Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 0 | ||
Current | 31,000,000 | 31,000,000 | 31,000,000 | ||
Total Investment Loans | 32,000,000 | 32,000,000 | 31,000,000 | ||
Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 81,000,000 | 81,000,000 | 164,000,000 | ||
Current | 3,222,000,000 | 3,222,000,000 | 2,466,000,000 | ||
Total Investment Loans | 3,303,000,000 | 3,303,000,000 | 2,630,000,000 | ||
Commercial real estate | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
Current | 707,000,000 | 707,000,000 | 620,000,000 | ||
Total Investment Loans | 707,000,000 | 707,000,000 | 620,000,000 | ||
Commercial and industrial | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 0 | ||
Current | 490,000,000 | 490,000,000 | 429,000,000 | ||
Total Investment Loans | 493,000,000 | 493,000,000 | 429,000,000 | ||
Warehouse lending | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
Current | 1,011,000,000 | 1,011,000,000 | 769,000,000 | ||
Total Investment Loans | 1,011,000,000 | 1,011,000,000 | 769,000,000 | ||
Commercial loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 0 | ||
Current | 2,208,000,000 | 2,208,000,000 | 1,818,000,000 | ||
Total Investment Loans | 2,211,000,000 | 2,211,000,000 | 1,818,000,000 | ||
30-59 Days Past Due | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 13,000,000 | 13,000,000 | 34,000,000 | ||
30-59 Days Past Due | Residential First Mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 8,000,000 | 8,000,000 | 29,000,000 | ||
30-59 Days Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 1,000,000 | ||
30-59 Days Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 4,000,000 | 4,000,000 | 4,000,000 | ||
30-59 Days Past Due | Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
30-59 Days Past Due | Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 13,000,000 | 13,000,000 | 34,000,000 | ||
30-59 Days Past Due | Commercial real estate | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
30-59 Days Past Due | Commercial and industrial | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
30-59 Days Past Due | Warehouse lending | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
30-59 Days Past Due | Commercial loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 8,000,000 | 8,000,000 | 10,000,000 | ||
60-89 Days Past Due | Residential First Mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 5,000,000 | 5,000,000 | 8,000,000 | ||
60-89 Days Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 1,000,000 | ||
60-89 Days Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 1,000,000 | ||
60-89 Days Past Due | Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 8,000,000 | 8,000,000 | 10,000,000 | ||
60-89 Days Past Due | Commercial real estate | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | Commercial and industrial | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | Warehouse lending | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | Commercial loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
90 Days or Greater Past Due | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 63,000,000 | 63,000,000 | 120,000,000 | ||
90 Days or Greater Past Due | Residential First Mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 51,000,000 | 51,000,000 | 115,000,000 | ||
90 Days or Greater Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 2,000,000 | ||
90 Days or Greater Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 7,000,000 | 7,000,000 | 3,000,000 | ||
90 Days or Greater Past Due | Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 0 | ||
90 Days or Greater Past Due | Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 60,000,000 | 60,000,000 | 120,000,000 | ||
90 Days or Greater Past Due | Commercial real estate | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
90 Days or Greater Past Due | Commercial and industrial | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 0 | ||
90 Days or Greater Past Due | Warehouse lending | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
90 Days or Greater Past Due | Commercial loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | $ 3,000,000 | $ 3,000,000 | $ 0 |
Loans Held-for-Investment (Trou
Loans Held-for-Investment (Troubled Debt Restructurings) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | $ 123 | $ 408 |
TDR loans under fair value option | 31 | 30 |
Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 97 | 362 |
Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 26 | 46 |
Residential First Mortgage | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 61 | 350 |
Residential First Mortgage | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 41 | 306 |
Residential First Mortgage | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 20 | 44 |
Second mortgage | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 35 | 36 |
Second mortgage | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 34 | 35 |
Second mortgage | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | 1 |
HELOC commitments | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 27 | 21 |
HELOC commitments | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 22 | 20 |
HELOC commitments | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 5 | 1 |
Consumer loans | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 123 | 407 |
Allowance for loan losses on TDR loans | 16 | 81 |
Consumer loans | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 97 | 361 |
Consumer loans | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 26 | 46 |
Commercial real estate | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | 1 |
Commercial real estate | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | 1 |
Commercial real estate | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | $ 0 |
Commercial and industrial | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial and industrial | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial and industrial | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial loans | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial loans | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial loans | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | $ 0 |
Loans Held-for-Investment (Tr56
Loans Held-for-Investment (Troubled Debt Restructuring Detail) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 109 | 125 | 529 | 417 |
Pre-Modification Unpaid Principal Balance | $ 18 | $ 14 | $ 82 | $ 41 |
Post-Modification Unpaid Principal Balance | 19 | 14 | 79 | 39 |
Increase (Decrease) in Allowance at Modification | $ 0 | $ 1 | $ (1) | $ 2 |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 1 | 2 | 2 | 22 |
TDRs that subsequently defaulted in previous 12 months, Unpaid Principal Balance | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that subsequently defaulted in previous 12 months, Increase in Allowance at Subsequent Default | $ 0 | $ 0 | $ 0 | $ 0 |
Residential First Mortgage | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 48 | 36 | 239 | 107 |
Pre-Modification Unpaid Principal Balance | $ 13 | $ 11 | $ 66 | $ 31 |
Post-Modification Unpaid Principal Balance | 14 | 11 | 65 | 30 |
Increase (Decrease) in Allowance at Modification | $ 0 | $ 1 | $ (1) | $ 2 |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 1 | 1 | 2 | |
TDRs that subsequently defaulted in previous 12 months, Unpaid Principal Balance | $ 0 | $ 0 | $ 0 | |
TDRs that subsequently defaulted in previous 12 months, Increase in Allowance at Subsequent Default | $ 0 | $ 0 | $ 0 | |
Second mortgage | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 15 | 85 | 83 | 291 |
Pre-Modification Unpaid Principal Balance | $ 1 | $ 3 | $ 4 | $ 9 |
Post-Modification Unpaid Principal Balance | 1 | 3 | 3 | 9 |
Increase (Decrease) in Allowance at Modification | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 2 | 1 | 15 | |
TDRs that subsequently defaulted in previous 12 months, Unpaid Principal Balance | $ 0 | $ 0 | $ 0 | |
TDRs that subsequently defaulted in previous 12 months, Increase in Allowance at Subsequent Default | $ 0 | $ 0 | $ 0 | |
HELOC commitments | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 46 | 4 | 204 | 19 |
Pre-Modification Unpaid Principal Balance | $ 4 | $ 0 | $ 12 | $ 1 |
Post-Modification Unpaid Principal Balance | 4 | 0 | 11 | 0 |
Increase (Decrease) in Allowance at Modification | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 5 | |||
TDRs that subsequently defaulted in previous 12 months, Unpaid Principal Balance | $ 0 | |||
TDRs that subsequently defaulted in previous 12 months, Increase in Allowance at Subsequent Default | $ 0 | |||
Consumer loans | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 3 | |||
Pre-Modification Unpaid Principal Balance | $ 0 | |||
Post-Modification Unpaid Principal Balance | 0 | |||
Increase (Decrease) in Allowance at Modification | $ 0 |
Loans Held-for-Investment (Impa
Loans Held-for-Investment (Impaired Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | $ 9 | $ 9 | $ 64 | ||
With no related allowance recorded, unpaid principal balance | 12 | 12 | 85 | ||
With an allowance recorded, recorded investment | 102 | 102 | 351 | ||
With an allowance recorded, unpaid principal balance | 103 | 103 | 356 | ||
With an allowance recorded, related allowance | 30 | 30 | 89 | ||
Total recorded investment | 111 | 111 | 415 | ||
Total unpaid principal balance | 115 | 115 | 441 | ||
Total related allowance | 30 | 30 | 89 | ||
Average Recorded Investment | 142 | $ 437 | 209 | $ 438 | |
Interest Income Recognized | 1 | 3 | 4 | 9 | |
Residential First Mortgage | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 6 | 6 | 63 | ||
With no related allowance recorded, unpaid principal balance | 6 | 6 | 78 | ||
With an allowance recorded, recorded investment | 70 | 70 | 321 | ||
With an allowance recorded, unpaid principal balance | 71 | 71 | 326 | ||
With an allowance recorded, related allowance | 22 | 22 | 82 | ||
Total recorded investment | 76 | 76 | 384 | ||
Total unpaid principal balance | 77 | 77 | 404 | ||
Total related allowance | 22 | 22 | 82 | ||
Average Recorded Investment | 96 | 406 | 172 | 408 | |
Interest Income Recognized | 1 | 3 | 4 | 8 | |
Second mortgage | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 0 | 0 | 1 | ||
With no related allowance recorded, unpaid principal balance | 0 | 0 | 6 | ||
With an allowance recorded, recorded investment | 29 | 29 | 29 | ||
With an allowance recorded, unpaid principal balance | 29 | 29 | 29 | ||
With an allowance recorded, related allowance | 7 | 7 | 6 | ||
Total recorded investment | 29 | 29 | 30 | ||
Total unpaid principal balance | 29 | 29 | 35 | ||
Total related allowance | 7 | 7 | 6 | ||
Average Recorded Investment | 29 | 30 | 30 | 28 | |
Interest Income Recognized | 0 | 0 | 0 | 1 | |
HELOC commitments | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 0 | 0 | 0 | ||
With no related allowance recorded, unpaid principal balance | 0 | 0 | 1 | ||
With an allowance recorded, recorded investment | 3 | 3 | 1 | ||
With an allowance recorded, unpaid principal balance | 3 | 3 | 1 | ||
With an allowance recorded, related allowance | 1 | 1 | 1 | ||
Total recorded investment | 3 | 3 | 1 | ||
Total unpaid principal balance | 3 | 3 | 2 | ||
Total related allowance | 1 | 1 | 1 | ||
Average Recorded Investment | 15 | 1 | 6 | 1 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial real estate | |||||
Impaired Loans [Line Items] | |||||
Average Recorded Investment | 0 | 0 | 0 | 1 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial and industrial | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 3 | 3 | 0 | ||
With no related allowance recorded, unpaid principal balance | 6 | 6 | 0 | ||
With an allowance recorded, related allowance | 0 | 0 | 0 | ||
Total recorded investment | 3 | 3 | 0 | ||
Total unpaid principal balance | 6 | 6 | 0 | ||
Total related allowance | 0 | 0 | $ 0 | ||
Average Recorded Investment | 2 | 0 | 1 | 0 | |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Held-for-Investment (Cred
Loans Held-for-Investment (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | $ 5,382 | $ 4,237 |
Total loans | 5,514 | 4,448 |
Commercial real estate | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 707 | 620 |
Total loans | 707 | 620 |
Commercial real estate | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 659 | 578 |
Commercial real estate | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 43 | 29 |
Commercial real estate | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 5 | 2 |
Commercial real estate | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | 11 |
Commercial real estate | Doubtful | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | |
Commercial and industrial | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 493 | 429 |
Total loans | 493 | 429 |
Commercial and industrial | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 445 | 398 |
Commercial and industrial | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 19 | 10 |
Commercial and industrial | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 7 | 0 |
Commercial and industrial | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 19 | 21 |
Commercial and industrial | Doubtful | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3 | |
Warehouse lending | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 1,011 | 769 |
Total loans | 1,011 | 769 |
Warehouse lending | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 921 | 650 |
Warehouse lending | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 76 | 119 |
Warehouse lending | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 11 | 0 |
Warehouse lending | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3 | 0 |
Warehouse lending | Doubtful | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | |
Commercial loans | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,211 | 1,818 |
Total loans | 2,211 | 1,818 |
Commercial loans | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,025 | 1,626 |
Commercial loans | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 138 | 158 |
Commercial loans | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 23 | 2 |
Commercial loans | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 22 | 32 |
Commercial loans | Doubtful | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3 | |
Residential First Mortgage | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,719 | 2,167 |
Total loans | 2,726 | 2,193 |
Residential First Mortgage | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,625 | 1,764 |
Residential First Mortgage | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 44 | 314 |
Residential First Mortgage | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 57 | 115 |
Second mortgage | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 95 | 96 |
Total loans | 140 | 149 |
Second mortgage | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 104 | 111 |
Second mortgage | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 34 | 36 |
Second mortgage | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2 | 2 |
HELOC commitments | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 325 | 125 |
Total loans | 405 | 257 |
HELOC commitments | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 374 | 233 |
HELOC commitments | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 24 | 21 |
HELOC commitments | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 7 | 3 |
Other Consumer | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 32 | 31 |
Total loans | 32 | 31 |
Other Consumer | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 32 | 31 |
Other Consumer | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Other Consumer | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Consumer loans | ||
Loans held-for-investment [Line Items] | ||
Total loans | 3,303 | 2,630 |
Consumer loans | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3,135 | 2,139 |
Consumer loans | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 102 | 371 |
Consumer loans | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | $ 66 | $ 120 |
Variable Interest Entities (V59
Variable Interest Entities (VIEs) (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
FSTAR 2005-1 HELOC Securitization | |||
Private-label Securitizations [Line Items] | |||
Cash payment to debt bondholders | $ 24 | ||
FSTAR 2007-1 Mortgage Securitization | |||
Private-label Securitizations [Line Items] | |||
Number of mortgage securitization trust loans | loan | 3,215 | 3,624 | |
Aggregate principal balance | $ 124 | $ 141 |
Variable Interest Entities (V60
Variable Interest Entities (VIEs) (Variable Interest Entities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Loans held-for-investment | $ 5,317 | $ 4,151 |
Liabilities | ||
Long-term debt | 279 | 331 |
HELOC Securitizations | Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Loans held-for-investment | 57 | 132 |
Liabilities | ||
Long-term debt | 32 | 84 |
HELOC Securitizations | FSTAR 2005-1 HELOC Securitization | Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Loans held-for-investment | 0 | 63 |
Liabilities | ||
Long-term debt | 0 | 42 |
HELOC Securitizations | FSTAR 2006-2 HELOC Securitization | Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Loans held-for-investment | 57 | 69 |
Liabilities | ||
Long-term debt | $ 32 | $ 42 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | $ 258 | |||
Changes in fair value due to | ||||
Fair value of MSRs at end of period | $ 294 | 294 | ||
Residential first mortgage loans | ||||
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | 317 | $ 289 | 258 | $ 285 |
Additions from loans sold with servicing retained | 74 | 79 | 220 | 199 |
Reductions from sales | (73) | (68) | (144) | (161) |
Changes in fair value due to | ||||
Decrease in MSR due to pay-offs, pay-downs and run-off | (9) | (10) | (34) | (22) |
Changes in valuation inputs or assumptions | (15) | (5) | (6) | (16) |
Fair value of MSRs at end of period | $ 294 | $ 285 | $ 294 | $ 285 |
Mortgage Servicing Rights (Inco
Mortgage Servicing Rights (Income and Fees from Associated with Mortgage Servicing Asset and Mortgage Loan Subserviced) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||||
Gain related to sale of MSRs | $ 2 | |||
Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total income on mortgage servicing asset, included in net return on mortgage servicing asset | $ 12 | $ 1 | 19 | $ 22 |
Net return on mortgage servicing asset | Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing fees, ancillary income and late fees | 18 | 17 | 52 | 50 |
Fair value adjustments | (24) | (15) | (38) | (38) |
Gain on hedging activity | 15 | 0 | 10 | 10 |
Net transaction costs | 3 | (1) | (5) | 0 |
Net Loan Administration Income | Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing fees, ancillary income and late fees | 8 | 7 | 24 | 21 |
Other servicing charges | 0 | (1) | (5) | (2) |
Total income on mortgage loans subserviced, included in loan administration | $ 8 | $ 6 | $ 19 | $ 19 |
Mortgage Servicing Rights (Sche
Mortgage Servicing Rights (Schedule of Sensitivity Analysis of Fair Value) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Transfers and Servicing [Abstract] | ||
Option adjusted spread, Actual (as a percent) | 8.68% | 8.88% |
Option adjusted spread, Decline in fair value due to 10% adverse change | $ 285,000,000 | $ 250,000,000 |
Option adjusted spread, Decline in fair value due to 20% adverse change | $ 276,000,000 | $ 243,000,000 |
Constant prepayment rate, Actual (as a percent) | 13.27% | 14.98% |
Constant prepayment rate, Decline in fair value due to 10% adverse change | $ 283,000,000 | $ 253,000,000 |
Constant prepayment rate, Decline in fair value due to 20% adverse change | 272,000,000 | 245,000,000 |
Weighted average cost to service per loan, Actual (in usd per loan) | 73.48 | 74.49 |
Weighted average cost to service per loan, Decline in fair value due to 10% adverse change | 290,000,000 | 258,000,000 |
Weighted average cost to service per loan, Decline in fair value due to 20% adverse change | $ 286,000,000 | $ 255,000,000 |
Derivative Financial Instrume64
Derivative Financial Instruments (Derivatives Designated as Hedging Instruments) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Remainder of Year, Net (less than) | $ 1,000,000 | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (3,000,000) | |
Cash Flow Hedging | Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Net | $ (5,000,000) | $ 0 |
Derivative Financial Instrume65
Derivative Financial Instruments (Schedule of Unrealized Gains or Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | $ (6) | $ 0 | $ 7 | $ 4 |
U.S. Treasury and euro dollar futures | Net return on mortgage servicing asset | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 3 | 0 | 6 | 6 |
Swap futures | Net return on mortgage servicing asset | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 10 | 0 | 2 | 0 |
Mortgage backed securities forwards | Net return on mortgage servicing asset | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 2 | 0 | 2 | 4 |
Rate lock commitments and forward agency and loan sales | Net gain on loan sales | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | (24) | (1) | (4) | (8) |
Rate lock commitments | Other noninterest income | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 1 | 0 | (1) | 0 |
Interest rate swaps | Other noninterest income | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | $ 2 | $ 1 | $ 2 | $ 2 |
Derivative Financial Instrume66
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives designated as hedging instruments | Interest rate swaps on FHLB advances | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | $ 0 | |
Derivatives designated as hedging instruments | Other liabilities | Interest rate swaps on FHLB advances | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 225 | |
Derivative liability, Fair Value | 8 | |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | 19 | |
Derivative asset, Fair Value | 60 | $ 52 |
Derivatives not designated as hedging instruments | U.S. Treasury and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 0 | 18 |
Derivatives not designated as hedging instruments | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 37 | 26 |
Derivatives not designated as hedging instruments | Swap futures | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | 1 | |
Derivative asset, Fair Value | 6 | |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | 18 | |
Derivative asset, Fair Value | 17 | |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | 6 | |
Derivative asset, Fair Value | 8 | |
Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 5,656 | 5,844 |
Derivative asset, Fair Value | 67 | 46 |
Derivatives not designated as hedging instruments | Other assets | U.S. Treasury and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 232 | 2,530 |
Derivative asset, Fair Value | 2 | 7 |
Derivatives not designated as hedging instruments | Other assets | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 173 | 161 |
Derivative asset, Fair Value | 2 | 2 |
Derivatives not designated as hedging instruments | Other assets | Swap futures | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 179 | |
Derivative asset, Fair Value | 3 | |
Derivatives not designated as hedging instruments | Other assets | Rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 4,234 | 2,604 |
Derivative asset, Fair Value | 44 | 31 |
Derivatives not designated as hedging instruments | Other assets | Forward agency and loan sales | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 69 | 194 |
Derivative asset, Fair Value | 1 | 0 |
Derivatives not designated as hedging instruments | Other assets | Interest rate swaps and swaptions | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 769 | |
Derivative asset, Fair Value | 15 | |
Derivatives not designated as hedging instruments | Other assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 355 | |
Derivative asset, Fair Value | 6 | |
Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 6,419 | 3,865 |
Derivative liability, Fair Value | 42 | 20 |
Derivatives not designated as hedging instruments | Other liabilities | U.S. Treasury and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 1,793 | 687 |
Derivative liability, Fair Value | 2 | 1 |
Derivatives not designated as hedging instruments | Other liabilities | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 10 | |
Derivative liability, Fair Value | 0 | |
Derivatives not designated as hedging instruments | Other liabilities | Swap futures | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 26 | |
Derivative liability, Fair Value | 1 | |
Derivatives not designated as hedging instruments | Other liabilities | Rate lock commitments | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 41 | 22 |
Derivative liability, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Other liabilities | Forward agency and loan sales | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 4,150 | 2,789 |
Derivative liability, Fair Value | 29 | 13 |
Derivatives not designated as hedging instruments | Other liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 399 | 367 |
Derivative liability, Fair Value | $ 10 | $ 6 |
Derivative Financial Instrume67
Derivative Financial Instruments (Master Netting Schedule) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Liability [Abstract] | ||
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | $ 10 | |
Derivative Asset [Abstract] | ||
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 48 | |
Derivatives designated as hedging instruments | Interest rate swaps on FHLB advances | ||
Derivative Liability [Abstract] | ||
Gross Amount | 0 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | (8) | |
Net Amount | 8 | |
Derivatives not designated as hedging instruments | ||
Derivative Liability [Abstract] | ||
Gross Amount | 19 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 19 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 8 | |
Net Amount | 11 | |
Derivative Asset [Abstract] | ||
Gross Amount | 60 | $ 52 |
Gross Amounts Offset in the Statement of Financial Position | 2 | 1 |
Net Amount Presented in the Statement of Financial Position | 58 | 51 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 38 | 36 |
Net Amount | 20 | 15 |
Derivatives not designated as hedging instruments | Swap futures | ||
Derivative Liability [Abstract] | ||
Gross Amount | 1 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 1 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 0 | |
Net Amount | 1 | |
Derivative Asset [Abstract] | ||
Gross Amount | 6 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 6 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 3 | |
Net Amount | 3 | |
Derivatives not designated as hedging instruments | U.S. Treasury and euro dollar futures | ||
Derivative Asset [Abstract] | ||
Gross Amount | 0 | 18 |
Gross Amounts Offset in the Statement of Financial Position | 2 | 1 |
Net Amount Presented in the Statement of Financial Position | (2) | 17 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | (2) | 10 |
Net Amount | 0 | 7 |
Derivatives not designated as hedging instruments | Mortgage backed securities forwards | ||
Derivative Asset [Abstract] | ||
Gross Amount | 37 | 26 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amount Presented in the Statement of Financial Position | 37 | 26 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 35 | 24 |
Net Amount | 2 | 2 |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Derivative Liability [Abstract] | ||
Gross Amount | 18 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 18 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 8 | |
Net Amount | 10 | |
Derivative Asset [Abstract] | ||
Gross Amount | 17 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 17 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 2 | |
Net Amount | $ 15 | |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Gross Amount | 6 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 6 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 0 | |
Net Amount | 6 | |
Derivative Asset [Abstract] | ||
Gross Amount | 8 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amount Presented in the Statement of Financial Position | 8 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 2 | |
Net Amount | $ 6 |
Derivative Financial Instrume68
Derivative Financial Instruments (Counterparty Credit Risk) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, Collateral, Obligation to Return Cash | $ 48 | |
Right to reclaim cash | $ 10 | |
Investment securities and cash collateral posted with counterparties | $ 36 |
Federal Home Loan Bank Advanc69
Federal Home Loan Bank Advances (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank advances (includes both short-term and long-term) | $ 2,024 | $ 514 |
Weighted average interest rate (as a percent) | 0.86% | 0.90% |
Short-term fixed rate term advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank advances (includes both short-term and long-term) | $ 824 | $ 214 |
Weighted average interest rate (as a percent) | 0.18% | 0.26% |
LIBOR adjustable advances long-term | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank advances (includes both short-term and long-term) | $ 225 | $ 0 |
Weighted average interest rate (as a percent) | 0.46% | 0.00% |
Long-term fixed rate term advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank advances (includes both short-term and long-term) | $ 975 | $ 300 |
Weighted average interest rate (as a percent) | 1.54% | 1.36% |
Federal Home Loan Bank Advanc70
Federal Home Loan Bank Advances (Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances [Line Items] | |||||
FHLB line of credit, maximum amount available | $ 7,000 | $ 7,000 | |||
FHLB line of credit, available collateral amount | 2,000 | 2,000 | |||
FHLB advances, line of credit | 1,600 | 1,600 | |||
Maximum outstanding at any month end | 2,127 | $ 1,000 | 2,198 | $ 1,300 | |
Average outstanding balance | 1,795 | 998 | 1,597 | 995 | |
Average remaining borrowing capacity | $ 1,738 | $ 2,026 | $ 1,711 | $ 1,832 | |
Weighted-average interest rate | 1.17% | 0.23% | 1.05% | 0.23% | |
Three Month LIBOR | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
FHLB line of credit, available collateral amount | $ 225 | $ 225 | |||
Debt instrument, variable interest rate, term | 3 months | 3 months | |||
FHLB Advances, Interest Rate Reset Period (in months) | 3 months | ||||
FHLB Advances, Prepayment Notification Period (in months) | 3 months | ||||
FHLB Advances, Initial Lockout Period (in months) | 12 months |
Federal Home Loan Bank Advanc71
Federal Home Loan Bank Advances (Schedule of FHLB, Advances, Maturity Summary) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Advances from Federal Home Loan Banks [Abstract] | ||
2,015 | $ 824 | |
2,016 | 175 | |
2,017 | 50 | |
2,018 | 125 | |
Thereafter | 850 | |
Total | $ 2,024 | $ 514 |
Long Term Debt (Details)
Long Term Debt (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($)quartersubsidiary | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Number of trust subsidiaries | subsidiary | 9 | |
Junior subordinated notes | $ 247 | $ 247 |
Long-term debt, par value | 279 | $ 331 |
Trust Preferred Securities [Abstract] | ||
Trust Preferred Securities, Accrued Interest | $ 26 | |
One Month LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.19% | 0.17% |
Debt instrument, variable interest rate, term | 1 month | 1 month |
Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.33% | 0.26% |
Debt instrument, variable interest rate, term | 3 months | 3 months |
3ML plus 3.25% maturing 2032 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.58% | 3.50% |
3ML plus 3.25% maturing 2033 A | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.54% | 3.48% |
3ML plus 3.25% maturing 2033 B | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.53% | 3.51% |
3ML plus 2.00% maturing 2035 A | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.00% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 2.29% | 2.23% |
3ML plus 2.00% maturing 2035 B | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.00% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 2.29% | 2.23% |
3ML plus 1.75% maturing 2035 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.75% | |
Junior subordinated notes | $ 51 | $ 51 |
Interest rate | 2.09% | 1.99% |
3ML plus 1.50% maturing 2035 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
Junior subordinated notes | $ 25 | $ 25 |
Interest rate | 1.79% | 1.73% |
3ML plus 1.45% maturing 2037 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.45% | |
Junior subordinated notes | $ 25 | $ 25 |
Interest rate | 1.79% | 1.69% |
3ML plus 2.50% maturing 2037 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.50% | |
Junior subordinated notes | $ 16 | $ 16 |
Interest rate | 2.84% | 2.74% |
3ML plus 0.46% maturing 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.46% | |
Trust Preferred Securities [Abstract] | ||
Maximum Percentage Before Allowance of Call Feature (less than) | 10.00% | |
3ML plus 0.46% maturing 2018 | One Month LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.46% | |
Interest rate | 16.00% | |
Debt instrument, variable interest rate, term | 1 month | |
3ML plus 0.46% maturing 2018 | HELOC Securitizations | ||
Debt Instrument [Line Items] | ||
Long-term debt, par value | $ 0 | $ 42 |
Debt Instrument, Face Amount | 43 | |
3ML plus 0.16% maturing 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.16% | |
Interest rate | 16.00% | |
3ML plus 0.16% maturing 2019 | HELOC Securitizations | ||
Debt Instrument [Line Items] | ||
Long-term debt, par value | $ 32 | 42 |
Debt Instrument, Face Amount | $ 33 | $ 45 |
Junior Subordinated Debt | ||
Trust Preferred Securities [Abstract] | ||
Maximum period for interest payment deferment (in quarters) | quarter | 20 | |
Current Period for Interest Payment Deferment (in Quarters) | quarter | 15 |
Representation and Warranty R73
Representation and Warranty Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Representation and Warranty Reserve [Roll Forward] | ||||
Balance, beginning of period | $ 48 | $ 50 | $ 53 | $ 54 |
Charged to gain on sale for current loan sales | 2 | 2 | 6 | 5 |
Charged to representation and warranty reserve - change in estimate | (6) | 13 | (13) | 16 |
Total | (4) | 15 | (7) | 21 |
Charge-offs, net | 1 | (8) | (1) | (18) |
Balance, end of period | $ 45 | $ 57 | $ 45 | $ 57 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Jan. 30, 2009 | |
Class of Stock [Line Items] | |||
Preferred Stock, Shares Sold | 266,657 | 266,657 | |
Exercise price of warrants (in usd per share) | $ 10 | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Sold | 266,657 | ||
Preferred stock, total exercise price of warrant | $ 267 | ||
U.S. Treasury | Common Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Sold | 266,657 | ||
Number of shares auctioned by warrants | 1,000,000 | ||
Exercise price of warrants (in usd per share) | $ 62 | ||
Preferred stock, total exercise price of warrant | $ 267 | ||
U.S. Treasury | Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate per annum (as a percent) | 9.00% |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation value per share (in usd per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares outstanding | 266,657 | 266,657 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding | 266,657 | |
Preferred stock, value | $ 0 | |
Preferred stock, additional paid in capital | 267 | |
Preferred stock, dividends payable | $ 79 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated other comprehensive income (loss) | ||||
Beginning balance | $ 8,000,000 | |||
Net unrealized loss, net of tax | $ 9,000,000 | $ (5,000,000) | 9,000,000 | $ 11,000,000 |
Ending balance | 12,000,000 | 12,000,000 | ||
Cash Flow Hedges | ||||
Accumulated other comprehensive income (loss) | ||||
Beginning balance | 0 | 0 | ||
Net unrealized loss, net of tax | (5,000,000) | 0 | ||
Transfer of net unrealized loss from AFS to HTM | 0 | |||
Ending balance | (5,000,000) | 0 | (5,000,000) | 0 |
Accumulated other comprehensive income (loss) | ||||
Accumulated other comprehensive income (loss) | ||||
Net realized gains reclassified into earnings, net of tax | 0 | 0 | ||
Held-to-Maturity Securities | Securities | ||||
Accumulated other comprehensive income (loss) | ||||
Beginning balance | 0 | 0 | ||
Net unrealized loss, net of tax | 0 | 0 | ||
Transfer of net unrealized loss from AFS to HTM | 5,000,000 | |||
Ending balance | 5,000,000 | 0 | 5,000,000 | 0 |
Available-for-Sale Securities | Securities | ||||
Accumulated other comprehensive income (loss) | ||||
Beginning balance | 8,000,000 | (5,000,000) | ||
Net unrealized loss, net of tax | 9,000,000 | 4,000,000 | ||
Transfer of net unrealized loss from AFS to HTM | (5,000,000) | |||
Ending balance | $ 12,000,000 | $ (1,000,000) | $ 12,000,000 | $ (1,000,000) |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 47 | $ (28) | $ 125 | $ (80) |
Less: preferred stock dividend/accretion | 0 | 0 | 0 | (1) |
Net income (loss) from continuing operations | 47 | (28) | 125 | (81) |
Deferred cumulative preferred stock dividends | (8) | (7) | (22) | (19) |
Net income (loss) applicable to common stock | $ 39 | $ (35) | $ 103 | $ (100) |
Weighted average shares | ||||
Weighted average common shares outstanding | 56,436,026 | 56,249,300 | 56,419,354 | 56,224,850 |
Effect of dilutive securities | ||||
Warrants (in shares) | 339,478 | 0 | 290,840 | 0 |
Stock-based awards (in shares) | 431,999 | 0 | 340,595 | 0 |
Weighted average diluted common shares | 57,207,503 | 56,249,300 | 57,050,789 | 56,224,850 |
Earnings (loss) per common share | ||||
Net income (loss) applicable to common stock (in usd per share) | $ 0.70 | $ (0.61) | $ 1.82 | $ (1.79) |
Effect of dilutive securities | ||||
Warrants (in usd per share) | 0 | 0 | (0.01) | 0 |
Stock-based awards (in usd per share) | (0.01) | 0 | (0.01) | 0 |
Diluted (loss) earnings per share (in usd per share) | 0.69 | $ (0.61) | 1.80 | $ (1.79) |
Exercise price of warrants (in usd per share) | $ 10 | $ 10 | ||
Fair value of warrants | $ 8 | $ 8 |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Anti-dilutive) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 248,089 | 273,407 | |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 303,026 | 326,102 | |
Series C Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Arrearage on dividend payments | $ 79 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 24 | $ (10) | $ 70 | $ (38) |
Effective tax provision (benefit) rate (as a percent) | 34.40% | (27.20%) | 36.00% | (32.30%) |
Unrecognized tax benefits, recognition period (in months) | 12 months |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tangible capital (to tangible assets), Actual, Amount | $ 1,393 | $ 1,184 |
Tangible capital (to tangible assets), Actual, Ratio | 11.65% | 12.59% |
Tier 1 capital (to adjusted tangible assets), Actual, Amount | $ 1,393 | $ 1,184 |
Tier 1 capital (to adjusted tangible assets), Actual, Ratio (as a percent) | 11.65% | 12.59% |
Tier 1 capital (to adjusted tangible assets), For Capital Adequacy Purposes, Amount | $ 478 | $ 376 |
Tier 1 capital (to adjusted tangible assets), For Required Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 598 | $ 470 |
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Common equity Tier 1 capital (to RWA), Actual, Amount | $ 1,024 | |
Common equity Tier 1 capital (to RWA), Actual, Ratio (as a percent) | 14.93% | |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Amount | $ 309 | |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Ratio (as a percent) | 4.50% | |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Amount | $ 446 | |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Ratio (as a percent) | 6.50% | |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 1,393 | $ 1,184 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio (as a percent) | 20.32% | 22.81% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 411 | $ 208 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 549 | $ 311 |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 6.00% |
Total capital (to risk-weighted assets), Actual, Amount | $ 1,483 | $ 1,252 |
Total capital (to risk-weighted assets), Actual, Ratio (as a percent) | 21.64% | 24.12% |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 549 | $ 415 |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 686 | $ 519 |
Total capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tangible capital (to tangible assets), Actual, Amount | $ 1,426 | $ 1,167 |
Tangible capital (to tangible assets), Actual, Ratio | 11.91% | 12.43% |
Tier 1 capital (to adjusted tangible assets), Actual, Amount | $ 1,426 | $ 1,167 |
Tier 1 capital (to adjusted tangible assets), Actual, Ratio (as a percent) | 11.91% | 12.43% |
Tier 1 capital (to adjusted tangible assets), For Capital Adequacy Purposes, Amount | $ 479 | $ 376 |
Tier 1 capital (to adjusted tangible assets), For Required Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 599 | $ 470 |
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Common equity Tier 1 capital (to RWA), Actual, Amount | $ 1,426 | |
Common equity Tier 1 capital (to RWA), Actual, Ratio (as a percent) | 20.75% | |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Amount | $ 309 | |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Ratio (as a percent) | 4.50% | |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Amount | $ 447 | |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Ratio (as a percent) | 6.50% | |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 1,426 | $ 1,167 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio (as a percent) | 20.75% | 22.54% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 412 | $ 207 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 550 | $ 311 |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 6.00% |
Total capital (to risk-weighted assets), Actual, Amount | $ 1,516 | $ 1,235 |
Total capital (to risk-weighted assets), Actual, Ratio (as a percent) | 22.05% | 23.85% |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 550 | $ 414 |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 687 | $ 518 |
Total capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Legal Proceedings, Contingenc81
Legal Proceedings, Contingencies and Commitments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||
Litigation settlement payment amount | $ 118 | |
Accrued reserve for contingent liabilities | 85 | $ 86 |
Letter of Credit, reserve amount | 2 | 1 |
Mortgage loans interest-rate lock commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 4,314 | 2,172 |
HELOC commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 133 | 88 |
Other consumer commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 25 | 7 |
Warehouse loan commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 1,046 | 827 |
Standby and commercial letters of credit | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 14 | 10 |
Commercial and industrial | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 297 | 276 |
Other commercial commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 447 | 169 |
DOJ Agreement | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement Liability | $ 84 | $ 82 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets or liabilities at fair value between fair value levels | $ 0 | $ 0 | |
DOJ Agreement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Litigation Settlement Liability | $ 84,000,000 | $ 84,000,000 | $ 82,000,000 |
Discount rate (as a percent) | 7.60% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | $ 1,150 | $ 1,672 |
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 132 | 211 |
Mortgage servicing rights | 294 | 258 |
Total assets at fair value | 2,296 | 1,407 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | (32) | (84) |
Agency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 469 | 929 |
Agency-collateralized mortgage obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 668 | 741 |
Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 13 | 2 |
Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 1,150 | 1,672 |
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 5,307 | 3,998 |
Mortgage servicing rights | 294 | 258 |
Other investments | 100 | 100 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | (8) | (6) |
Long-term debt | (117) | (172) |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other investments | 0 | |
Level 1 | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Other investments | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 7 | |
Level 2 | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 1,150 | 1,670 |
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 26 | |
Mortgage servicing rights | 0 | 0 |
Other investments | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | (8) | (6) |
Long-term debt | (85) | (88) |
Level 3 | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 2 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 5,300 | 3,972 |
Mortgage servicing rights | 294 | 258 |
Other investments | 100 | 100 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | 0 | 0 |
Long-term debt | (32) | (84) |
Recurring | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 294 | 258 |
Derivative assets | 67 | 46 |
Other investments | 100 | 100 |
Total assets at fair value | 3,907 | 3,483 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (50) | (20) |
Warrant liabilities | (8) | (6) |
Long-term debt | (32) | (84) |
DOJ litigation settlement | (84) | (82) |
Total liabilities at fair value | (174) | (192) |
Recurring | Total Fair Value | Rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 44 | 31 |
Recurring | Total Fair Value | Swap futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 3 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (1) | |
Recurring | Total Fair Value | U.S. Treasury and euro dollar futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 2 | 7 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (2) | (1) |
Recurring | Total Fair Value | Forward agency and loan sales | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 1 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (29) | (13) |
Recurring | Total Fair Value | Interest rate swaps on FHLB advances | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (8) | |
Recurring | Total Fair Value | Mortgage backed securities forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 2 | 2 |
Recurring | Total Fair Value | Interest rate swaps | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 15 | 6 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (10) | (6) |
Recurring | Total Fair Value | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 7 | 26 |
Recurring | Total Fair Value | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 45 | 53 |
Recurring | Total Fair Value | Agency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 469 | 929 |
Recurring | Total Fair Value | Agency-collateralized mortgage obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 668 | 741 |
Recurring | Total Fair Value | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 13 | 2 |
Recurring | Total Fair Value | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 80 | 132 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 0 | 0 |
Derivative assets | 4 | 9 |
Other investments | 0 | 0 |
Total assets at fair value | 4 | 9 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (10) | (1) |
Warrant liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
DOJ litigation settlement | 0 | 0 |
Total liabilities at fair value | (10) | (1) |
Recurring | Level 1 | Rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 1 | Swap futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 1 | U.S. Treasury and euro dollar futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 2 | 7 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (2) | (1) |
Recurring | Level 1 | Forward agency and loan sales | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate swaps on FHLB advances | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (8) | |
Recurring | Level 1 | Mortgage backed securities forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 2 | 2 |
Recurring | Level 1 | Interest rate swaps | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Recurring | Level 1 | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 1 | Agency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Agency-collateralized mortgage obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 0 | 0 |
Derivative assets | 19 | 6 |
Other investments | 0 | 0 |
Total assets at fair value | 3,340 | 2,898 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (40) | (19) |
Warrant liabilities | (8) | (6) |
Long-term debt | 0 | 0 |
DOJ litigation settlement | 0 | 0 |
Total liabilities at fair value | (48) | (25) |
Recurring | Level 2 | Rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 2 | Swap futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 3 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (1) | |
Recurring | Level 2 | U.S. Treasury and euro dollar futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 2 | Forward agency and loan sales | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 1 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (29) | (13) |
Recurring | Level 2 | Interest rate swaps on FHLB advances | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 2 | Mortgage backed securities forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 2 | Interest rate swaps | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 15 | 6 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (10) | (6) |
Recurring | Level 2 | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 7 | 26 |
Recurring | Level 2 | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 2 | Agency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 469 | 929 |
Recurring | Level 2 | Agency-collateralized mortgage obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 668 | 741 |
Recurring | Level 2 | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 13 | 0 |
Recurring | Level 2 | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 294 | 258 |
Derivative assets | 44 | 31 |
Other investments | 100 | 100 |
Total assets at fair value | 563 | 576 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Warrant liabilities | 0 | 0 |
Long-term debt | (32) | (84) |
DOJ litigation settlement | (84) | (82) |
Total liabilities at fair value | (116) | (166) |
Recurring | Level 3 | Rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 44 | 31 |
Recurring | Level 3 | Swap futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 3 | U.S. Treasury and euro dollar futures | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Forward agency and loan sales | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Interest rate swaps on FHLB advances | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 3 | Mortgage backed securities forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 3 | Interest rate swaps | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Recurring | Level 3 | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 45 | 53 |
Recurring | Level 3 | Agency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Agency-collateralized mortgage obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 2 |
Recurring | Level 3 | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | $ 80 | $ 132 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Using Significant Unobservable Inputs) (Details) - Level 3 - Recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | $ 558 | $ 495 | $ 545 | $ 505 |
Total unrealized gains/(losses) recorded in earnings | (22) | (13) | (42) | (36) |
Total realized gains/(losses) recorded in earnings | 0 | 1 | 1 | 2 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 74 | 79 | 220 | 198 |
Sales | (73) | (70) | (144) | (161) |
Settlements | (18) | (11) | (61) | (27) |
Transfers In (Out) | 0 | 4 | 0 | 4 |
Balance at End of Period | 519 | 485 | 519 | 485 |
Changes in Unrealized Gains / (Losses) Held at End of Period | (13) | (12) | 2 | (25) |
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (120) | (176) | (166) | (199) |
Total unrealized gains/(losses) recorded in earnings | 0 | (2) | (2) | 13 |
Total realized gains/(losses) recorded in earnings | 0 | (2) | (3) | (5) |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 24 | 0 |
Settlements | 4 | 8 | 31 | 19 |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | (116) | (172) | (116) | (172) |
Changes In Unrealized Gains / (Losses) Held at End of Period | 0 | (2) | (2) | 13 |
Long-term debt | ||||
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (36) | (98) | (84) | (106) |
Total unrealized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total realized gains/(losses) recorded in earnings | 0 | (2) | (3) | (5) |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 24 | 0 |
Settlements | 4 | 8 | 31 | 19 |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | (32) | (92) | (32) | (92) |
Changes In Unrealized Gains / (Losses) Held at End of Period | 0 | 0 | 0 | 0 |
DOJ litigation settlement | ||||
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (84) | (78) | (82) | (93) |
Total unrealized gains/(losses) recorded in earnings | 0 | (2) | (2) | 13 |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | (84) | (80) | (84) | (80) |
Changes In Unrealized Gains / (Losses) Held at End of Period | 0 | (2) | (2) | 13 |
Rate lock commitments | ||||
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 30 | 51 | 31 | 10 |
Total unrealized gains/(losses) recorded in earnings | 53 | 10 | 60 | 110 |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 81 | 66 | 272 | 203 |
Sales | (104) | (85) | (276) | (244) |
Settlements | (16) | (15) | (43) | (52) |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | 44 | 27 | 44 | 27 |
Changes In Unrealized Gains / (Losses) Held at End of Period | 14 | 1 | 30 | 24 |
Municipal obligations | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 2 | |||
Total unrealized gains/(losses) recorded in earnings | 0 | |||
Total realized gains/(losses) recorded in earnings | 0 | |||
Total unrealized gains/(losses) recorded in OCI | 0 | |||
Purchases / Originations | 0 | |||
Sales | 0 | |||
Settlements | (2) | |||
Transfers In (Out) | 0 | |||
Balance at End of Period | 0 | 0 | ||
Changes in Unrealized Gains / (Losses) Held at End of Period | 0 | |||
Second mortgage loans | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 48 | 59 | 53 | 65 |
Total unrealized gains/(losses) recorded in earnings | 0 | 1 | 2 | 2 |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 1 | 1 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (3) | (4) | (11) | (12) |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | 45 | 56 | 45 | 56 |
Changes in Unrealized Gains / (Losses) Held at End of Period | 0 | 1 | 1 | 2 |
HELOC loans | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 93 | 147 | 132 | 155 |
Total unrealized gains/(losses) recorded in earnings | 2 | (1) | (4) | (1) |
Total realized gains/(losses) recorded in earnings | 0 | 1 | 0 | 1 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (15) | (7) | (48) | (15) |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | 80 | 140 | 80 | 140 |
Changes in Unrealized Gains / (Losses) Held at End of Period | 1 | (8) | 4 | (16) |
Mortgage servicing rights | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 317 | 289 | 258 | 285 |
Total unrealized gains/(losses) recorded in earnings | (24) | (13) | (40) | (37) |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 74 | 79 | 220 | 198 |
Sales | (73) | (70) | (144) | (161) |
Settlements | 0 | 0 | 0 | 0 |
Transfers In (Out) | 0 | 0 | 0 | 0 |
Balance at End of Period | 294 | 285 | 294 | 285 |
Changes in Unrealized Gains / (Losses) Held at End of Period | (14) | (5) | (3) | (11) |
Other investments | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 100 | 100 | ||
Total unrealized gains/(losses) recorded in earnings | 0 | 0 | ||
Total realized gains/(losses) recorded in earnings | 0 | 0 | ||
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | ||
Purchases / Originations | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers In (Out) | 0 | 0 | ||
Balance at End of Period | 100 | 100 | ||
Changes in Unrealized Gains / (Losses) Held at End of Period | $ 0 | $ 0 | ||
Mortgage-backed Securities, Issued by Third Party Private Enterprises [Member] | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 0 | |||
Total unrealized gains/(losses) recorded in earnings | 0 | |||
Total realized gains/(losses) recorded in earnings | 0 | |||
Total unrealized gains/(losses) recorded in OCI | 0 | |||
Purchases / Originations | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Transfers In (Out) | 4 | |||
Balance at End of Period | 4 | 4 | ||
Changes in Unrealized Gains / (Losses) Held at End of Period | 0 | |||
FSTAR 2006-1 Second Mortgage Trust [Member] | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 0 | |||
Total unrealized gains/(losses) recorded in earnings | 0 | |||
Total realized gains/(losses) recorded in earnings | 0 | |||
Total unrealized gains/(losses) recorded in OCI | 0 | |||
Purchases / Originations | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Transfers In (Out) | 4 | |||
Balance at End of Period | 4 | $ 4 | ||
Changes in Unrealized Gains / (Losses) Held at End of Period | $ 0 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Quantitative Information) (Details) - Level 3 - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Mortgage servicing rights | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.40% | 10.90% | ||||
Prepay rate (as a percent) | 13.30% | 15.00% | ||||
Recurring | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 519 | $ 545 | $ 558 | $ 485 | $ 495 | $ 505 |
Fair value, Liabilities | (116) | (166) | (120) | (172) | (176) | (199) |
Recurring | DOJ litigation settlement | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | (84) | (82) | (84) | (80) | (78) | (93) |
Recurring | Rate lock commitments | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | 44 | 31 | 30 | 27 | 51 | 10 |
Recurring | Second mortgage | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | 45 | 53 | 48 | 56 | 59 | 65 |
Recurring | Mortgage servicing rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | 294 | 258 | $ 317 | $ 285 | $ 289 | $ 285 |
Discounted cash flows | Recurring | Long-term debt | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | $ (32) | $ (84) | ||||
Discounted cash flows | Recurring | Long-term debt | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 7.20% | 6.40% | ||||
Prepay rate (as a percent) | 18.40% | 16.00% | ||||
Weighted average life (in years) | 2 months 12 days | 6 months | ||||
Discounted cash flows | Recurring | Long-term debt | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.80% | 9.60% | ||||
Prepay rate (as a percent) | 27.60% | 24.00% | ||||
Weighted average life (in years) | 4 months 24 days | 8 months 12 days | ||||
Discounted cash flows | Recurring | Long-term debt | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 9.00% | 8.00% | ||||
Prepay rate (as a percent) | 23.00% | 20.00% | ||||
Weighted average life (in years) | 3 months 18 days | 7 months 12 days | ||||
Discounted cash flows | Recurring | DOJ litigation settlement | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | $ (84) | $ (82) | ||||
Discounted cash flows | Recurring | DOJ litigation settlement | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Asset growth rate (as a percent) | 4.40% | 4.40% | ||||
MSR growth rate (as a percent) | 0.90% | 0.90% | ||||
Return on assets (ROA) improvement rate (as a percent) | 0.02% | 0.02% | ||||
Peer group return on assets (as a percent) | 0.50% | 0.50% | ||||
Discounted cash flows | Recurring | DOJ litigation settlement | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Asset growth rate (as a percent) | 6.60% | 6.60% | ||||
MSR growth rate (as a percent) | 1.40% | 1.40% | ||||
Return on assets (ROA) improvement rate (as a percent) | 0.04% | 0.04% | ||||
Peer group return on assets (as a percent) | 0.80% | 0.80% | ||||
Discounted cash flows | Recurring | DOJ litigation settlement | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Asset growth rate (as a percent) | 5.50% | 5.50% | ||||
MSR growth rate (as a percent) | 1.20% | 1.20% | ||||
Return on assets (ROA) improvement rate (as a percent) | 0.03% | 0.03% | ||||
Peer group return on assets (as a percent) | 0.70% | 0.70% | ||||
Discounted cash flows | Recurring | Second mortgage | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 45 | $ 53 | ||||
Discounted cash flows | Recurring | Second mortgage | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 7.20% | 7.20% | ||||
Prepay rate (as a percent) | 15.40% | 11.30% | ||||
CDR rate (as a percent) | 2.60% | 2.40% | ||||
Discounted cash flows | Recurring | Second mortgage | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.80% | 10.80% | ||||
Prepay rate (as a percent) | 23.20% | 17.00% | ||||
CDR rate (as a percent) | 3.90% | 3.60% | ||||
Discounted cash flows | Recurring | Second mortgage | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 9.00% | 9.00% | ||||
Prepay rate (as a percent) | 19.30% | 14.20% | ||||
CDR rate (as a percent) | 3.30% | 3.00% | ||||
Discounted cash flows | Recurring | HELOC loans | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 80 | $ 132 | ||||
Discounted cash flows | Recurring | HELOC loans | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 6.90% | 8.00% | ||||
Prepay rate (as a percent) | 7.20% | |||||
CDR rate (as a percent) | 6.60% | |||||
Loss severity (as a percent) | 24.40% | 60.20% | ||||
Discounted cash flows | Recurring | HELOC loans | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.30% | 12.00% | ||||
Prepay rate (as a percent) | 10.80% | |||||
CDR rate (as a percent) | 9.90% | |||||
Loss severity (as a percent) | 36.70% | 90.20% | ||||
Discounted cash flows | Recurring | HELOC loans | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 8.60% | 10.00% | ||||
Prepay rate (as a percent) | 9.00% | |||||
CDR rate (as a percent) | 8.30% | |||||
Loss severity (as a percent) | 30.60% | 75.20% | ||||
Discounted cash flows | Recurring | Mortgage servicing rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 294 | $ 258 | ||||
Discounted cash flows | Recurring | Mortgage servicing rights | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 7.00% | 7.10% | ||||
Prepay rate (as a percent) | 10.80% | 12.20% | ||||
Weighted average cost to service per loan | $ 59 | $ 67 | ||||
Discounted cash flows | Recurring | Mortgage servicing rights | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.40% | 10.70% | ||||
Prepay rate (as a percent) | 15.60% | 17.10% | ||||
Weighted average cost to service per loan | $ 88 | $ 88 | ||||
Discounted cash flows | Recurring | Mortgage servicing rights | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 8.70% | 8.90% | ||||
Prepay rate (as a percent) | 13.30% | 15.00% | ||||
Weighted average cost to service per loan | $ 73 | $ 78 | ||||
Consensus pricing | Recurring | Rate lock commitments | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | $ 44 | $ 31 | ||||
Consensus pricing | Recurring | Rate lock commitments | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 65.30% | 66.20% | ||||
Consensus pricing | Recurring | Rate lock commitments | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 97.90% | 99.30% | ||||
Consensus pricing | Recurring | Rate lock commitments | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 81.60% | 82.70% |
Fair Value Measurements (Fair86
Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Disclosures) (Details) - Weighted Average - Level 3 | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Residential Mortgage Servicing Rights Capitalized | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Weighted-average life (in years) | 7 years 10 months 24 days | 7 years 10 months 24 days | 7 years 10 months 24 days | 8 years | |
Weighted-average constant prepayment rate (as a percent) | 11.00% | 12.00% | 11.20% | 11.80% | |
Weighted-average discount rate (as a percent) | 10.90% | 11.70% | 10.80% | 12.00% | |
Mortgage servicing rights | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Weighted-average life (in years) | 7 years 1 month 6 days | 6 years 7 months 6 days | |||
Weighted-average constant prepayment rate (as a percent) | 13.30% | 15.00% | |||
Weighted-average discount rate (as a percent) | 10.40% | 10.90% |
Fair Value Measurements (Asse87
Fair Value Measurements (Assets Measured at Fair Value on a Non-recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets at fair value | $ 2,296 | $ 2,296 | $ 1,407 | ||
Net gain (loss) on loan sales | 68 | $ 52 | 242 | $ 152 | |
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value losses on repossessed assets | 1 | 2 | 2 | 4 | |
Net gain (loss) on loan sales | 1 | 1 | 2 | 4 | |
Nonrecurring | Provision for loan losses | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value losses on loans | 20 | $ 10 | 76 | $ 38 | |
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 17 | 17 | |||
Total assets at fair value | 56 | 56 | 93 | ||
Residential first mortgage loans | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 36 | 36 | $ 74 | ||
Commercial and industrial | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | $ 3 | $ 3 |
Fair Value Measurements (Asse88
Fair Value Measurements (Assets Measured on a Nonrecurring Basis, Level 3 Quantitative Information) (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Repossessed assets | $ 17 | |
Residential first mortgage loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 36 | $ 74 |
Residential first mortgage loans | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 35.00% | 35.00% |
Residential first mortgage loans | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 45.00% | 47.00% |
Residential first mortgage loans | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 41.40% | 36.90% |
Repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Repossessed assets | $ 19 | |
Repossessed assets | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 0.00% | 7.00% |
Repossessed assets | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 100.00% | 100.00% |
Repossessed assets | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 39.50% | 45.40% |
Commercial and industrial | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 3 | |
Commercial and industrial | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 40.00% | |
Commercial and industrial | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 50.00% | |
Commercial and industrial | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 50.10% |
Fair Value Measurements (Fair89
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Investment securities available-for-sale | $ 1,150 | $ 1,672 |
Investment securities held-to-maturity | 1,118 | |
Loans held-for-sale | 2,164 | 1,196 |
Loans held-for-investment | 132 | 211 |
Mortgage servicing rights | 294 | 258 |
Long-term debt | (32) | (84) |
Level 1 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Other investments | 0 | |
Level 1 | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Level 1 | Mortgage backed securities forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Level 2 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Loans held-for-investment | 7 | |
Level 2 | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 15 | |
Carrying Value | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 195 | 136 |
Investment securities available-for-sale | 1,150 | 1,672 |
Investment securities held-to-maturity | 1,108 | |
Loans held-for-sale | 2,408 | 1,244 |
Loans with government guarantees | 509 | 1,128 |
Loans held-for-investment | 5,317 | 4,151 |
Repossessed assets | 17 | 19 |
Federal Home Loan Bank stock | 113 | 155 |
Mortgage servicing rights | 294 | 258 |
Bank owned life insurance | 176 | |
Other investments | 100 | 100 |
Other assets, foreclosure claims | 231 | |
Federal Home Loan Bank advances | (2,024) | (514) |
Long-term debt | (279) | (331) |
Warrant liabilities | (8) | (6) |
Litigation settlement | (84) | (82) |
Carrying Value | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (4,850) | (4,565) |
Carrying Value | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (813) | (813) |
Carrying Value | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,207) | (918) |
Carrying Value | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,267) | (773) |
Carrying Value | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Derivative liabilities | (2) | |
Carrying Value | Rate lock commitments | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 44 | 31 |
Carrying Value | Swap futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 3 | |
Derivative liabilities | (1) | |
Carrying Value | Mortgage backed securities forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Carrying Value | Forward agency and loan sales | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 1 | |
Derivative liabilities | (29) | (13) |
Carrying Value | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 15 | 6 |
Derivative liabilities | (6) | |
Carrying Value | Interest rate swaps on FHLB advances | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (8) | |
Carrying Value | Interest rate swaps | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (10) | |
Carrying Value | U.S. Treasury futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 7 | |
Derivative liabilities | (1) | |
Carrying Value | Agency forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Estimated Fair Value | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 195 | 136 |
Investment securities available-for-sale | 1,150 | 1,672 |
Investment securities held-to-maturity | 1,118 | |
Loans held-for-sale | 2,164 | 1,196 |
Loans with government guarantees | 494 | 1,094 |
Loans held-for-investment | 5,307 | 3,998 |
Repossessed assets | 17 | 19 |
Federal Home Loan Bank stock | 113 | 155 |
Mortgage servicing rights | 294 | 258 |
Bank owned life insurance | 176 | |
Other investments | 100 | 100 |
Other assets, foreclosure claims | 231 | |
Federal Home Loan Bank advances | (2,027) | (514) |
Long-term debt | (117) | (172) |
Warrant liabilities | (8) | (6) |
Litigation settlement | (84) | (82) |
Estimated Fair Value | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (4,643) | (4,291) |
Estimated Fair Value | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (816) | (816) |
Estimated Fair Value | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,189) | (884) |
Estimated Fair Value | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,179) | (770) |
Estimated Fair Value | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Derivative liabilities | (2) | |
Estimated Fair Value | Rate lock commitments | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 44 | 31 |
Estimated Fair Value | Swap futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 3 | |
Derivative liabilities | (1) | |
Estimated Fair Value | Mortgage backed securities forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Estimated Fair Value | Forward agency and loan sales | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 1 | |
Derivative liabilities | (29) | (13) |
Estimated Fair Value | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 15 | 6 |
Derivative liabilities | (6) | |
Estimated Fair Value | Interest rate swaps on FHLB advances | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (8) | |
Estimated Fair Value | Interest rate swaps | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (10) | |
Estimated Fair Value | U.S. Treasury futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 7 | |
Derivative liabilities | (1) | |
Estimated Fair Value | Agency forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Estimated Fair Value | Level 1 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 195 | 136 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | |
Loans held-for-sale | 0 | 0 |
Loans with government guarantees | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Repossessed assets | 0 | 0 |
Federal Home Loan Bank stock | 0 | 155 |
Mortgage servicing rights | 0 | 0 |
Bank owned life insurance | 0 | |
Other investments | 0 | |
Other assets, foreclosure claims | 0 | |
Federal Home Loan Bank advances | 0 | (514) |
Long-term debt | 0 | 0 |
Warrant liabilities | 0 | 0 |
Litigation settlement | 0 | 0 |
Estimated Fair Value | Level 1 | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (2) | |
Estimated Fair Value | Level 1 | Rate lock commitments | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | 0 |
Estimated Fair Value | Level 1 | Swap futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 1 | Forward agency and loan sales | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Estimated Fair Value | Level 1 | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 1 | Interest rate swaps on FHLB advances | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (8) | |
Estimated Fair Value | Level 1 | Interest rate swaps | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | 0 | |
Estimated Fair Value | Level 1 | U.S. Treasury futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 7 | |
Derivative liabilities | (1) | |
Estimated Fair Value | Level 1 | Agency forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 2 | |
Estimated Fair Value | Level 2 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 1,150 | 1,670 |
Investment securities held-to-maturity | 1,118 | |
Loans held-for-sale | 2,164 | 1,196 |
Loans with government guarantees | 494 | 1,094 |
Loans held-for-investment | 26 | |
Repossessed assets | 0 | 0 |
Federal Home Loan Bank stock | 113 | 0 |
Mortgage servicing rights | 0 | 0 |
Bank owned life insurance | 176 | |
Other investments | 0 | 0 |
Other assets, foreclosure claims | 231 | |
Federal Home Loan Bank advances | (2,027) | 0 |
Long-term debt | (85) | (88) |
Warrant liabilities | (8) | (6) |
Litigation settlement | 0 | 0 |
Estimated Fair Value | Level 2 | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (4,643) | (4,291) |
Estimated Fair Value | Level 2 | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (816) | (816) |
Estimated Fair Value | Level 2 | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,189) | (884) |
Estimated Fair Value | Level 2 | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,179) | (770) |
Estimated Fair Value | Level 2 | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 2 | Rate lock commitments | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | 0 |
Estimated Fair Value | Level 2 | Swap futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 3 | |
Derivative liabilities | (1) | |
Estimated Fair Value | Level 2 | Mortgage backed securities forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Estimated Fair Value | Level 2 | Forward agency and loan sales | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 1 | |
Derivative liabilities | (29) | (13) |
Estimated Fair Value | Level 2 | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 6 | |
Derivative liabilities | (6) | |
Estimated Fair Value | Level 2 | Interest rate swaps on FHLB advances | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | 0 | |
Estimated Fair Value | Level 2 | Interest rate swaps | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | (10) | |
Estimated Fair Value | Level 2 | U.S. Treasury futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 2 | Agency forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Estimated Fair Value | Level 3 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 0 | 2 |
Investment securities held-to-maturity | 0 | |
Loans held-for-sale | 0 | 0 |
Loans with government guarantees | 0 | 0 |
Loans held-for-investment | 5,300 | 3,972 |
Repossessed assets | 17 | 19 |
Federal Home Loan Bank stock | 0 | 0 |
Mortgage servicing rights | 294 | 258 |
Bank owned life insurance | 0 | |
Other investments | 100 | 100 |
Other assets, foreclosure claims | 0 | |
Federal Home Loan Bank advances | 0 | 0 |
Long-term debt | (32) | (84) |
Warrant liabilities | 0 | 0 |
Litigation settlement | (84) | (82) |
Estimated Fair Value | Level 3 | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | U.S. Treasury and euro dollar futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 3 | Rate lock commitments | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 44 | 31 |
Estimated Fair Value | Level 3 | Swap futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 3 | Mortgage backed securities forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Estimated Fair Value | Level 3 | Forward agency and loan sales | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Estimated Fair Value | Level 3 | Interest rate swaps and swaptions | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 3 | Interest rate swaps on FHLB advances | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | 0 | |
Estimated Fair Value | Level 3 | Interest rate swaps | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative liabilities | $ 0 | |
Estimated Fair Value | Level 3 | U.S. Treasury futures | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Estimated Fair Value | Level 3 | Agency forwards | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Derivative assets | $ 0 |
Fair Value Measurements (Fair90
Fair Value Measurements (Fair Value Option Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | $ 2,215 | $ 2,215 | $ 1,380 | ||
Total assets at fair value | 2,296 | 2,296 | 1,407 | ||
Assets, fair value over/(under) UPB | 81 | 81 | 27 | ||
Long-term debt, fair value | (32) | (32) | (84) | ||
Litigation settlement payment amount | 118 | ||||
Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 2,060 | 2,060 | 1,144 | ||
Total assets at fair value | 2,164 | 2,164 | 1,196 | ||
Assets, fair value over/(under) UPB | 104 | 104 | 52 | ||
Loans held-for-sale | Net gain on loan sales | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 134 | $ 80 | 276 | $ 269 | |
Loans held-for-sale | Other noninterest income | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 0 | 0 | 0 | (1) | |
Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 155 | 155 | 236 | ||
Total assets at fair value | 132 | 132 | 211 | ||
Assets, fair value over/(under) UPB | (23) | (23) | (25) | ||
Loans held-for-investment | Other noninterest income | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | (1) | (6) | (35) | (35) | |
Loans held-for-investment | Interest income on loans | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 1 | 0 | 4 | 0 | |
Long-term debt | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Liabilities, unpaid principal balance | (33) | (33) | (88) | ||
Long-term debt, fair value | (32) | (32) | (84) | ||
Liabilities, fair value over/(under) UPB | 1 | 1 | 4 | ||
Long-term debt | Other noninterest income | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 3 | 6 | 28 | 14 | |
DOJ litigation settlement | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Liabilities, unpaid principal balance | (118) | (118) | (118) | ||
Liabilities, fair value over/(under) UPB | 34 | 34 | 36 | ||
Fair value, Liabilities | (84) | (84) | (82) | ||
DOJ litigation settlement | Other noninterest expense | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 0 | $ (2) | 2 | $ 13 | |
Nonperforming | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 19 | 19 | 11 | ||
Total assets at fair value | 9 | 9 | 5 | ||
Assets, fair value over/(under) UPB | (10) | (10) | (6) | ||
Nonperforming | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 19 | 19 | 11 | ||
Total assets at fair value | 9 | 9 | 5 | ||
Assets, fair value over/(under) UPB | (10) | (10) | (6) | ||
Performing | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 2,196 | 2,196 | 1,369 | ||
Total assets at fair value | 2,287 | 2,287 | 1,402 | ||
Assets, fair value over/(under) UPB | 91 | 91 | 33 | ||
Performing | Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 2,060 | 2,060 | 1,144 | ||
Total assets at fair value | 2,164 | 2,164 | 1,196 | ||
Assets, fair value over/(under) UPB | 104 | 104 | 52 | ||
Performing | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 136 | 136 | 225 | ||
Total assets at fair value | 123 | 123 | 206 | ||
Assets, fair value over/(under) UPB | $ (13) | (13) | $ (19) | ||
DOJ Agreement | Additional payments | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Litigation settlement payment amount | $ 118 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 4 | |||
Summary of Operations | ||||
Net interest income | $ 73 | $ 64 | $ 211 | $ 185 |
Net gain (loss) on loan sales | 68 | 52 | 242 | 152 |
Representation and warranty reserve - change in estimate | 6 | (13) | 13 | (16) |
Other noninterest income (loss) | 54 | 46 | 118 | 127 |
Benefit for loan losses | 1 | (8) | 18 | (127) |
Asset resolution | 0 | (14) | (13) | (43) |
Depreciation and amortization expense | (12) | (6) | (36) | (17) |
Other noninterest expense | (119) | (159) | (358) | (379) |
Total noninterest expense | (131) | (179) | (407) | (439) |
Income (loss) before income taxes | 71 | (38) | 195 | (118) |
Provision (benefit) for federal income taxes | 24 | (10) | 70 | (38) |
Net income (loss) | 47 | (28) | 125 | (80) |
Average balances | ||||
Loans held-for-sale | 2,200 | 1,629 | 2,088 | 1,482 |
Loans with government guarantees | 547 | 1,215 | 679 | 1,241 |
Loans held-for-investment | 5,412 | 4,088 | 4,885 | 3,956 |
Total assets | 12,305 | 10,253 | 11,663 | 9,796 |
Deposits | 8,260 | 7,047 | 7,791 | 6,596 |
Mortgage Origination | ||||
Summary of Operations | ||||
Net interest income | 19 | 16 | 54 | 42 |
Net gain (loss) on loan sales | 72 | 52 | 255 | 155 |
Representation and warranty reserve - change in estimate | (4) | (11) | (3) | (10) |
Other noninterest income (loss) | 17 | 17 | 52 | 42 |
Benefit for loan losses | 0 | 0 | 0 | 0 |
Asset resolution | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | (1) | 0 | (2) | (1) |
Other noninterest expense | (47) | (59) | (156) | (159) |
Total noninterest expense | (48) | (59) | (158) | (160) |
Income (loss) before income taxes | 56 | 15 | 200 | 69 |
Provision (benefit) for federal income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 56 | 15 | 200 | 69 |
Average balances | ||||
Loans held-for-sale | 2,179 | 1,590 | 2,052 | 1,407 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 4 | 0 | 3 | 0 |
Total assets | 2,337 | 1,747 | 2,194 | 1,559 |
Deposits | 0 | 0 | 0 | 0 |
Mortgage Servicing | ||||
Summary of Operations | ||||
Net interest income | 4 | 6 | 11 | 17 |
Net gain (loss) on loan sales | 0 | 0 | 0 | 0 |
Representation and warranty reserve - change in estimate | 10 | (2) | 16 | (6) |
Other noninterest income (loss) | 14 | 12 | 41 | 47 |
Benefit for loan losses | 0 | 0 | 0 | 0 |
Asset resolution | 0 | (13) | (12) | (41) |
Depreciation and amortization expense | (1) | (2) | (2) | (4) |
Other noninterest expense | (37) | (56) | (96) | (92) |
Total noninterest expense | (38) | (71) | (110) | (137) |
Income (loss) before income taxes | (10) | (55) | (42) | (79) |
Provision (benefit) for federal income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (10) | (55) | (42) | (79) |
Average balances | ||||
Loans held-for-sale | 0 | 0 | 0 | 0 |
Loans with government guarantees | 547 | 1,215 | 679 | 1,241 |
Loans held-for-investment | 0 | 0 | 0 | 0 |
Total assets | 860 | 1,358 | 1,004 | 1,379 |
Deposits | 1,487 | 865 | 1,189 | 723 |
Community Banking | ||||
Summary of Operations | ||||
Net interest income | 44 | 38 | 126 | 111 |
Net gain (loss) on loan sales | (4) | 0 | (13) | (3) |
Representation and warranty reserve - change in estimate | 0 | 0 | 0 | 0 |
Other noninterest income (loss) | 12 | 14 | 19 | 13 |
Benefit for loan losses | 1 | (8) | 18 | (127) |
Asset resolution | 0 | (1) | (1) | (2) |
Depreciation and amortization expense | (1) | (1) | (4) | (4) |
Other noninterest expense | (38) | (41) | (116) | (119) |
Total noninterest expense | (39) | (43) | (121) | (125) |
Income (loss) before income taxes | 14 | 1 | 29 | (131) |
Provision (benefit) for federal income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 14 | 1 | 29 | (131) |
Average balances | ||||
Loans held-for-sale | 21 | 39 | 36 | 75 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 5,348 | 4,088 | 4,786 | 3,956 |
Total assets | 5,336 | 4,005 | 4,753 | 3,945 |
Deposits | 6,773 | 6,182 | 6,602 | 5,873 |
Other | ||||
Summary of Operations | ||||
Net interest income | 6 | 4 | 20 | 15 |
Net gain (loss) on loan sales | 0 | 0 | 0 | 0 |
Representation and warranty reserve - change in estimate | 0 | 0 | 0 | 0 |
Other noninterest income (loss) | 11 | 3 | 6 | 25 |
Benefit for loan losses | 0 | 0 | 0 | 0 |
Asset resolution | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | (9) | (3) | (28) | (8) |
Other noninterest expense | 3 | (3) | 10 | (9) |
Total noninterest expense | (6) | (6) | (18) | (17) |
Income (loss) before income taxes | 11 | 1 | 8 | 23 |
Provision (benefit) for federal income taxes | 24 | (10) | 70 | (38) |
Net income (loss) | (13) | 11 | (62) | 61 |
Average balances | ||||
Loans held-for-sale | 0 | 0 | 0 | 0 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 60 | 0 | 96 | 0 |
Total assets | 3,772 | 3,143 | 3,712 | 2,913 |
Deposits | 0 | 0 | 0 | 0 |
Operating Segments | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 201 | 149 | 584 | 448 |
Operating Segments | Mortgage Origination | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 104 | 74 | 358 | 229 |
Operating Segments | Mortgage Servicing | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 28 | 16 | 68 | 58 |
Operating Segments | Community Banking | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 52 | 52 | 132 | 121 |
Operating Segments | Other | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 17 | 7 | 26 | 40 |
Intersegment Eliminations | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Mortgage Origination | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 15 | 2 | 18 | 7 |
Intersegment Eliminations | Mortgage Servicing | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | (5) | 4 | 1 | 14 |
Intersegment Eliminations | Community Banking | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | (4) | 0 | (9) | (3) |
Intersegment Eliminations | Other | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | $ (6) | $ (6) | $ (10) | $ (18) |
Restatement of Consolidated S92
Restatement of Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||||
Net income (loss) | $ 47 | $ (28) | $ 125 | $ (80) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Provision for loan losses | (18) | |||
Representation and warranty (benefit) provision | (6) | 13 | (13) | 16 |
Depreciation and amortization | 17 | |||
Deferred income taxes | 68 | |||
Net gain on loan and asset sales | (241) | |||
Net change in: | ||||
Change in fair value and other non-cash changes | (231) | |||
Proceeds from sales of loans held-for-sale (HFS) | 15,247 | |||
Origination, premium paid and repurchase of loans, net of principal repayments | (22,180) | |||
Increase in accrued interest receivable | (6) | |||
Increase in other assets, excludes purchase of other investments | 155 | |||
Net charge-offs in representation and warranty reserve | (1) | |||
Increase in other liabilities | 11 | |||
Net cash used in operating activities | (7,067) | |||
Investing Activities | ||||
Proceeds from sale of available for sale securities including loans that have been securitized/Proceeds received from sale of investment securities available-for-sale | 6,603 | |||
Collection of principal on investment securities available-for-sale/Repayment of investment securities available-for-sale | 185 | |||
Purchase of investment securities available-for-sale and other | (783) | |||
Proceeds received from the sale of held-for-investment loans (HFI)/Net change from sales of loans held-for-investment | 788 | |||
Origination and purchase of loans HFI, net of principal repayments | (2,249) | |||
Proceeds from the disposition of repossessed assets | 19 | |||
Acquisitions of premises and equipment, net of proceeds | (28) | |||
Proceeds from the sale of mortgage servicing rights | 183 | |||
Net cash provided by investing activities | 4,613 | |||
Financing Activities | ||||
Net increase in deposit accounts | 1,068 | |||
Repayment of Federal Home Loan Bank advances/Net increase in Federal Home Loan Bank Advances | (20,725) | |||
Proceeds from increases in Federal Home Loan Bank advances | 22,235 | |||
Net receipt of payments of loans serviced for others | (23) | |||
Net receipt of escrow payments | 13 | |||
Net cash provided by financing activities | 2,513 | |||
Net increase (decrease) in cash and cash equivalents | 59 | |||
Beginning cash and cash equivalents | 136 | |||
Ending cash and cash equivalents | $ 195 | 195 | ||
Supplemental disclosure of cash flow information | ||||
Interest paid on deposits and other borrowings | 42 | |||
Income tax payments (refund) | 3 | |||
Non-cash reclassification of loans HFI to loans HFS | 1,113 | |||
Non-cash reclassification of loans HFS to loans HFI | 30 | |||
Non-cash reclassification of loans HFS to AFS securities | 6,617 | |||
Mortgage servicing rights resulting from sale or securitization of loans | $ 220 | |||
As Restated | ||||
Operating Activities | ||||
Net income (loss) | (80) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Provision for loan losses | 127 | |||
Representation and warranty (benefit) provision | 16 | |||
Depreciation and amortization | 18 | |||
Deferred income taxes | (35) | |||
Net gain on loan and asset sales | (163) | |||
Net change in: | ||||
Change in fair value and other non-cash changes | (150) | |||
Proceeds from sales of loans held-for-sale (HFS) | 12,610 | |||
Origination, premium paid and repurchase of loans, net of principal repayments | (18,225) | |||
Increase in accrued interest receivable | (12) | |||
Increase in other assets, excludes purchase of other investments | (82) | |||
Net charge-offs in representation and warranty reserve | (18) | |||
Increase in other liabilities | 35 | |||
Net cash used in operating activities | (5,959) | |||
Investing Activities | ||||
Proceeds from sale of available for sale securities including loans that have been securitized/Proceeds received from sale of investment securities available-for-sale | 6,532 | |||
Collection of principal on investment securities available-for-sale/Repayment of investment securities available-for-sale | 118 | |||
Purchase of investment securities available-for-sale and other | (756) | |||
Proceeds received from the sale of held-for-investment loans (HFI)/Net change from sales of loans held-for-investment | 62 | |||
Origination and purchase of loans HFI, net of principal repayments | (623) | |||
Proceeds from the disposition of repossessed assets | 30 | |||
Acquisitions of premises and equipment, net of proceeds | (26) | |||
Proceeds from the sale of mortgage servicing rights | 168 | |||
Net cash provided by investing activities | 5,505 | |||
Financing Activities | ||||
Net increase in deposit accounts | 1,094 | |||
Repayment of Federal Home Loan Bank advances/Net increase in Federal Home Loan Bank Advances | (14,471) | |||
Proceeds from increases in Federal Home Loan Bank advances | 13,633 | |||
Repayment of long-term debt | (19) | |||
Net receipt of payments of loans serviced for others | 39 | |||
Net receipt of escrow payments | 4 | |||
Net cash provided by financing activities | 280 | |||
Net increase (decrease) in cash and cash equivalents | (174) | |||
Beginning cash and cash equivalents | 281 | |||
Ending cash and cash equivalents | 107 | 107 | ||
Supplemental disclosure of cash flow information | ||||
Interest paid on deposits and other borrowings | 23 | |||
Income tax payments (refund) | (1) | |||
Non-cash reclassification of loans HFI to loans HFS | 384 | |||
Non-cash reclassification of loans HFS to loans HFI | 15 | |||
Non-cash reclassification of loans HFS to AFS securities | 6,234 | |||
Mortgage servicing rights resulting from sale or securitization of loans | 198 | |||
As Reported | ||||
Operating Activities | ||||
Net income (loss) | (80) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Provision for loan losses | 127 | |||
Representation and warranty (benefit) provision | 16 | |||
Depreciation and amortization | 18 | |||
Loss on fair value of mortgage servicing rights | 36 | |||
Loss on fair value of long-term debt | 5 | |||
Net gain on loan and asset sales | (167) | |||
Net change in: | ||||
Net gain on investment securities | (3) | |||
Proceeds from sales of loans held-for-sale (HFS) | 13,249 | |||
Origination, premium paid and repurchase of loans, net of principal repayments | (18,927) | |||
Decrease in repurchase loans with government guarantees, net of claims received | 82 | |||
Increase in accrued interest receivable | (12) | |||
Increase in other assets, excludes purchase of other investments | (103) | |||
Increase in payable for mortgage repurchase option | (17) | |||
Net charge-offs in representation and warranty reserve | (18) | |||
Increase in other liabilities | 20 | |||
Net cash used in operating activities | (5,774) | |||
Investing Activities | ||||
Proceeds from sale of available for sale securities including loans that have been securitized/Proceeds received from sale of investment securities available-for-sale | 6,317 | |||
Collection of principal on investment securities available-for-sale/Repayment of investment securities available-for-sale | 118 | |||
Purchase of investment securities available-for-sale and other | (755) | |||
Proceeds received from the sale of held-for-investment loans (HFI)/Net change from sales of loans held-for-investment | (369) | |||
Principal repayments net of origination of loans held-for-investment | (150) | |||
Proceeds from the disposition of repossessed assets | 30 | |||
Acquisitions of premises and equipment, net of proceeds | (26) | |||
Proceeds from the sale of mortgage servicing rights | 155 | |||
Net cash provided by investing activities | 5,320 | |||
Financing Activities | ||||
Net increase in deposit accounts | 1,094 | |||
Repayment of Federal Home Loan Bank advances/Net increase in Federal Home Loan Bank Advances | (838) | |||
Repayment of long-term debt | (19) | |||
Net receipt of payments of loans serviced for others | 39 | |||
Net receipt of escrow payments | 4 | |||
Net cash provided by financing activities | 280 | |||
Net increase (decrease) in cash and cash equivalents | (174) | |||
Beginning cash and cash equivalents | 281 | |||
Ending cash and cash equivalents | $ 107 | 107 | ||
Supplemental disclosure of cash flow information | ||||
Interest paid on deposits and other borrowings | 23 | |||
Income tax payments (refund) | 0 | |||
Non-cash reclassification of loans HFI to loans HFS | 384 | |||
Non-cash reclassification of loans HFS to loans HFI | 15 | |||
Mortgage servicing rights resulting from sale or securitization of loans | 198 | |||
Loans held-for-investment transferred to repossessed assets | $ 49 |