Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
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 | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,576,203 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash | $ 64 | $ 54 |
Interest-earning deposits | 120 | 154 |
Total cash and cash equivalents | 184 | 208 |
Investment securities available-for-sale | 1,145 | 1,294 |
Investment securities held-to-maturity | 1,211 | 1,268 |
Loans held-for-sale ($3,071 and $2,541 measured at fair value, respectively) | 3,091 | 2,576 |
Loans held-for-investment ($88 and $111 measured at fair value, respectively) | 5,822 | 6,352 |
Loans with government guarantees | 435 | 485 |
Less: allowance for loan losses | (150) | (187) |
Total loans held-for-investment and loans with government guarantees, net | 6,107 | 6,650 |
Mortgage servicing rights | 301 | 296 |
Federal Home Loan Bank stock | 172 | 170 |
Premises and equipment, net | 259 | 250 |
Net deferred tax asset | 333 | 364 |
Other assets | 920 | 639 |
Total assets | 13,723 | 13,715 |
Liabilities and Stockholders’ Equity | ||
Noninterest bearing deposits | 2,109 | 1,574 |
Interest bearing deposits | 6,462 | 6,361 |
Total deposits | 8,571 | 7,935 |
Short-term Federal Home Loan Bank advances | 1,069 | 2,116 |
Long-term Federal Home Loan Bank advances | 1,577 | 1,425 |
Other long-term debt | 247 | 247 |
Representation and warranty reserve | 36 | 40 |
Other liabilities ($84 and $84 measured at fair value, respectively) | 624 | 423 |
Total liabilities | 12,124 | 12,186 |
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; 56,575,779 and 56,483,258 shares issued and outstanding, respectively | 1 | 1 |
Additional paid in capital | 1,491 | 1,486 |
Accumulated other comprehensive (loss) income | (19) | 2 |
Accumulated deficit | (141) | (227) |
Total stockholders’ equity | 1,599 | 1,529 |
Total liabilities and stockholders’ equity | $ 13,723 | $ 13,715 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Loans held-for-sale, fair value | $ 3,071 | $ 2,541 |
Loans held-for-investment, fair value | 88 | 111 |
Liabilities and Stockholders’ Equity | ||
Other liabilities, fair value | $ 84 | $ 84 |
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 (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 266,657 | 266,657 |
Preferred stock, shares outstanding (in shares) | 266,657 | 266,657 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 56,575,779 | 56,483,258 |
Common stock, shares outstanding (in shares) | 56,575,779 | 56,483,258 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Income | ||||
Loans | $ 82 | $ 74 | $ 166 | $ 139 |
Investment securities | 17 | 15 | 34 | 29 |
Interest-earning deposits and other | 0 | 1 | 0 | 1 |
Total interest income | 99 | 90 | 200 | 169 |
Interest Expense | ||||
Deposits | 11 | 11 | 22 | 20 |
Short-term debt | 1 | 0 | 3 | 0 |
Long-term debt | 8 | 4 | 15 | 7 |
Other debt | 2 | 2 | 4 | 4 |
Total interest expense | 22 | 17 | 44 | 31 |
Net interest income | 77 | 73 | 156 | 138 |
Provision (benefit) for loan losses | (3) | (13) | (16) | (17) |
Net interest income after provision (benefit) for loan losses | 80 | 86 | 172 | 155 |
Noninterest Income | ||||
Net gain on loan sales | 90 | 83 | 165 | 174 |
Loan fees and charges | 19 | 19 | 34 | 36 |
Deposit fees and charges | 6 | 6 | 12 | 12 |
Loan administration income | 4 | 7 | 10 | 11 |
Net (loss) return on mortgage servicing rights | (4) | 9 | (10) | 7 |
Net loss on sale of assets | 0 | (2) | (2) | (2) |
Representation and warranty benefit | 4 | 5 | 6 | 7 |
Other noninterest income (loss) | 9 | (1) | 18 | 0 |
Total noninterest income | 128 | 126 | 233 | 245 |
Noninterest Expense | ||||
Compensation and benefits | 66 | 59 | 134 | 120 |
Commissions | 14 | 11 | 24 | 21 |
Occupancy and equipment | 21 | 20 | 43 | 40 |
Asset resolution | 1 | 5 | 4 | 13 |
Federal insurance premiums | 3 | 6 | 6 | 12 |
Loan processing expense | 15 | 14 | 27 | 26 |
Legal and professional expense | 6 | 8 | 15 | 17 |
Other noninterest expense | 13 | 15 | 23 | 27 |
Total noninterest expense | 139 | 138 | 276 | 276 |
Income before income taxes | 69 | 74 | 129 | 124 |
Provision for income taxes | 22 | 28 | 43 | 46 |
Net income | $ 47 | $ 46 | $ 86 | $ 78 |
Income per share | ||||
Basic (in dollars per share) | $ 0.67 | $ 0.69 | $ 1.23 | $ 1.12 |
Diluted (in dollars per share) | $ 0.66 | $ 0.68 | $ 1.21 | $ 1.11 |
Weighted average shares outstanding | ||||
Basic (in shares) | 56,574,796 | 56,436,026 | 56,544,256 | 56,410,880 |
Diluted (in shares) | 57,751,230 | 57,165,072 | 57,623,081 | 56,971,133 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 47 | $ 46 | $ 86 | $ 78 |
Investment securities | ||||
Unrealized gain (loss) (net of tax effect $1, $9, $10 and $1, respectively) | 1 | (16) | 16 | 0 |
Net change in unrealized gain (loss) on investment securities, net of tax | 1 | (16) | 16 | 0 |
Derivatives and hedging activities | ||||
Unrealized loss (net of tax effect $3, $0, $19 and $0, respectively) | (12) | 0 | (44) | 0 |
Less: Reclassification of net loss on derivative instruments | 3 | 0 | 7 | 0 |
Net change in derivatives and hedging activities, net of tax | (9) | 0 | (37) | 0 |
Other comprehensive (loss) income, net of tax | (8) | (16) | (21) | 0 |
Comprehensive income | $ 39 | $ 30 | $ 65 | $ 78 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized Holding Gain (Loss) on Securities, Tax | $ 1 | $ 9 | $ 10 | $ 1 |
Unrealized Gain (Loss) on Derivatives, Tax | $ 3 | $ 0 | $ 19 | $ 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 (shares) at Dec. 31, 2014 | 266,657 | 56,332,307 | ||||
Beginning balance at Dec. 31, 2014 | $ 1,373 | $ 267 | $ 1 | $ 1,482 | $ 8 | $ (385) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 78 | 78 | ||||
Total other comprehensive loss | 0 | |||||
Stock-based compensation (in shares) | 103,719 | |||||
Stock-based compensation | 0 | |||||
Ending balance (shares) at Jun. 30, 2015 | 266,657 | 56,436,026 | ||||
Ending balance at Jun. 30, 2015 | 1,451 | $ 267 | $ 1 | 1,482 | 8 | (307) |
Beginning balance (shares) at Dec. 31, 2015 | 266,657 | 56,483,258 | ||||
Beginning balance at Dec. 31, 2015 | 1,529 | $ 267 | $ 1 | 1,486 | 2 | (227) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 86 | 86 | ||||
Total other comprehensive loss | (21) | (21) | ||||
Stock-based compensation (in shares) | 92,521 | |||||
Stock-based compensation | 5 | 5 | ||||
Ending balance (shares) at Jun. 30, 2016 | 266,657 | 56,575,779 | ||||
Ending balance at Jun. 30, 2016 | $ 1,599 | $ 267 | $ 1 | $ 1,491 | $ (19) | $ (141) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income | $ 86,000,000 | $ 78,000,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
(Benefit) provision for loan losses | (16,000,000) | (17,000,000) |
Representation and warranty (benefit) provision | (6,000,000) | (7,000,000) |
Depreciation and amortization | 16,000,000 | 11,000,000 |
Deferred income taxes | 31,000,000 | 43,000,000 |
Net gain on loan and asset sales | (163,000,000) | (171,000,000) |
Change in fair value and other non-cash changes | (197,000,000) | (334,000,000) |
Proceeds from sales of loans held-for-sale (HFS) | 9,761,000,000 | 9,764,000,000 |
Origination, premium paid and purchase of loans, net of principal repayments | (14,639,000,000) | (14,458,000,000) |
Decrease (increase) in accrued interest receivable | 1,000,000 | (4,000,000) |
(Increase) decrease in other assets | (58,000,000) | 43,000,000 |
Increase in other liabilities | 31,000,000 | 6,000,000 |
Net cash used in operating activities | (5,153,000,000) | (5,046,000,000) |
Investing Activities | ||
Proceeds from sale of available for sale securities including loans that have been securitized | 5,943,000,000 | 4,558,000,000 |
Collection of principal on investment securities available-for-sale | 68,000,000 | 124,000,000 |
Purchase of investment securities available-for-sale and other | (68,000,000) | (724,000,000) |
Collection of principal on investment securities held-to-maturity (HTM) | 72,000,000 | 0 |
Purchase of investment securities HTM | (15,000,000) | 0 |
Proceeds received from the sale of held-for-investment loans (HFI) | 228,000,000 | 710,000,000 |
Origination and purchase of loans HFI, net of principal repayments | (812,000,000) | (1,717,000,000) |
Purchase of bank owned life insurance | (85,000,000) | (150,000,000) |
Proceeds from the disposition of repossessed assets | 9,000,000 | 13,000,000 |
Net (purchase) redemption of Federal Home Loan Bank stock | (2,000,000) | 42,000,000 |
Acquisitions of premises and equipment, net of proceeds | (25,000,000) | (19,000,000) |
Proceeds from the sale of mortgage servicing rights | 21,000,000 | 100,000,000 |
Net cash provided by investing activities | 5,334,000,000 | 2,937,000,000 |
Financing Activities | ||
Net increase in deposit accounts | 636,000,000 | 580,000,000 |
Net change in short-term borrowings | (1,047,000,000) | 0 |
Proceeds from long-term Federal Home Loan Bank advances | 150,000,000 | 14,480,000,000 |
Repayment of long-term Federal Home Loan Bank advances | 0 | (12,796,000,000) |
Repayment of long-term debt | 0 | (50,000,000) |
Net receipt (disbursement) of payments of loans serviced for others | 52,000,000 | (3,000,000) |
Net receipt of escrow payments | 4,000,000 | 8,000,000 |
Net cash (used in) provided by financing activities | (205,000,000) | 2,219,000,000 |
Net (decrease) increase in cash and cash equivalents | (24,000,000) | 110,000,000 |
Beginning cash and cash equivalents | 208,000,000 | 136,000,000 |
Ending cash and cash equivalents | 184,000,000 | 246,000,000 |
Supplemental disclosure of cash flow information | ||
Interest paid on deposits and other borrowings | 37,000,000 | 26,000,000 |
Income tax payments | 2,000,000 | 3,000,000 |
Non-cash reclassification of loans originated HFI to loans HFS | 1,331,000,000 | 775,000,000 |
Non-cash reclassification of mortgage loans originated HFS to HFI | 0 | 27,000,000 |
Non-cash reclassification of mortgage loans HFS to AFS securities | 5,768,000,000 | 4,566,000,000 |
Mortgage servicing rights resulting from sale or securitization of loans | 122,000,000 | 146,000,000 |
Non-cash reclassification of loans with government guarantee to other assets | $ 0 | $ 373,000,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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. Where we say "we," "us," or "our," we usually mean Flagstar Bancorp, Inc. However, in some cases, a reference to "we," "us," or "our" will include our wholly owned subsidiary Flagstar Bank, FSB (the "Bank"). 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 our opinion, all adjustments necessary for a fair statement 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 our Annual Report on Form 10-K for the year ended December 31, 2015 , which is available on our 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 | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities As of June 30, 2016 and December 31, 2015 , investment securities were comprised of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in millions) June 30, 2016 Available-for-sale securities Agency - Commercial $ 626 $ 14 $ — $ 640 Agency - Residential 461 12 — 473 Municipal obligations 31 1 — 32 Total available-for-sale securities (1) $ 1,118 $ 27 $ — $ 1,145 Held-to-maturity securities Agency - Commercial $ 635 $ 12 $ — $ 647 Agency - Residential 576 14 — 590 Total held-to-maturity securities (1) $ 1,211 $ 26 $ — $ 1,237 December 31, 2015 Available-for-sale securities Agency - Commercial $ 766 $ 3 $ (3 ) $ 766 Agency - Residential 514 2 (2 ) 514 Municipal obligations 14 — — 14 Total available-for-sale securities (1) $ 1,294 $ 5 $ (5 ) $ 1,294 Held-to-maturity securities Agency - Commercial $ 634 $ — $ (2 ) $ 632 Agency - Residential 634 — (4 ) 630 Total held-to-maturity securities (1) $ 1,268 $ — $ (6 ) $ 1,262 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at June 30, 2016 or December 31, 2015 . Credit related declines in the available-for-sale and held-to-maturity securities are classified as other than temporary impairments 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) we intend to sell the security; (2) it is more likely than not we 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. We evaluate our 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. During the three and six months ended June 30, 2016 and June 30, 2015 , we had no other-than-temporary impairments. 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. We purchased $40 million and $68 million , respectively, of available-for-sale securities, which included U.S. government sponsored agency mortgage-backed securities and municipal obligations, during the three and six months ended June 30, 2016 . We purchased $72 million and $724 million , respectively, of available-for-sale securities, which included U.S. government sponsored agencies comprised of mortgage-backed securities and collateralized mortgage obligations during the three and six months ended June 30, 2015 . 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 six months ended June 30, 2016 , there were $175 million in sales of available-for-sale securities, which did not include those related to mortgage loans that had been securitized for sale in the normal course of business. These sales resulted in a realized gain of $1 million during both the three and six months ended June 30, 2016 . During the three and six months ended June 30, 2015 , there were no sales of available-for-sale securities, except those related to mortgage loans that had been securitized for sale in the normal course of business. 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. Unrealized losses are not recorded to the extent they are temporary in nature. Transfers of investment securities into the held-to-maturity category from the available-for-sale category are accounted for at fair value on the date of transfer. The related unrealized gain, net of tax that was included in the transfer is retained in other comprehensive income amortizing as an adjustment to interest income over the remaining life of the securities. During the third quarter 2015 , we transferred $1.1 billion of available-for-sale securities to held-to-maturity securities at a premium of $8 million , reflecting our intent and ability to hold those securities to maturity. 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. We purchased zero and $15 million of held-to-maturity securities, which included U.S. government sponsored agency mortgage-backed securities during the three and six months ended June 30, 2016 , respectively. During the three and six months ended June 30, 2015 , we had no purchases of held-to-maturity securities. 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) June 30, 2016 Available-for-sale securities Agency - Commercial $ 7 1 $ — $ 13 2 $ — Held-to-maturity securities Agency - Commercial $ — — $ — $ 57 4 $ — December 31, 2015 Available-for-sale securities Agency - Commercial $ — — $ — $ 482 27 $ (3 ) Agency - Residential $ 8 2 $ — $ 224 15 $ (2 ) Held-to-maturity securities Agency - Commercial $ — — $ — $ 471 27 $ (2 ) Agency - Residential $ — — $ — $ 547 50 $ (4 ) The amortized cost and estimated fair value of securities at June 30, 2016 , are presented below by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-maturity Amortized Cost Fair Value Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield June 30, 2016 (Dollars in millions) (Dollars in millions) Due after one year through five years $ 18 $ 18 3.97 % $ — $ — — % Due after five years through 10 years 7 7 2.66 % 61 64 2.50 % Due after 10 years 1,093 1,120 2.59 % 1,150 1,173 2.40 % Total $ 1,118 $ 1,145 $ 1,211 $ 1,237 We pledge investment securities, primarily municipal taxable and agency collateralized mortgage obligations, to collateralize lines of credit and/or borrowings. At June 30, 2016 , we pledged $234 million of investment securities, compared to $14 million at December 31, 2015 . |
Loans Held-for-Sale
Loans Held-for-Sale | 6 Months Ended |
Jun. 30, 2016 | |
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 and selling the securities. At June 30, 2016 and December 31, 2015 , loans held-for-sale totaled $3.1 billion and $2.6 billion , respectively. For the three and six months ended June 30, 2016 , we had net gains on loan sales associated with loans held-for-sale, excluding the gains from the sale of mortgage loans transferred from loans held-for-investment, of $85 million and $151 million , respectively, as compared to $83 million and $174 million during the three and six months ended June 30, 2015 , respectively. At June 30, 2016 and December 31, 2015 , $20 million and $35 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 we have elected the fair value option for such loans. |
Loans with Government Guarantee
Loans with Government Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans with Government Guarantees | Loans with Government Guarantees The majority of loans with government guarantees are insured or guaranteed by the Federal Housing Administration ("FHA") and U.S. Department of Veterans Affairs. FHA 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. Certain loans within our portfolio may be subject to indemnifications and insurance limits which exposes us to limited credit risk. We have reserved for this risk as a component of our allowance for loan losses on residential first mortgages. At June 30, 2016 and December 31, 2015 , loans with government guarantees totaled $435 million and $485 million , respectively. At June 30, 2016 , repossessed assets and the associated claims recorded in other assets totaled $178 million and $210 million at December 31, 2015 . |
Loans Held-for-Investment
Loans Held-for-Investment | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Loans Held-for-Investment | Loans Held-for-Investment Loans held-for-investment are summarized as follows: June 30, December 31, (Dollars in millions) Consumer loans Residential first mortgage $ 2,075 $ 3,100 Second mortgage 127 135 HELOC 346 384 Other 32 31 Total consumer loans 2,580 3,650 Commercial loans Commercial real estate (1) 976 814 Commercial and industrial 615 552 Warehouse lending 1,651 1,336 Total commercial loans 3,242 2,702 Total loans held-for-investment $ 5,822 $ 6,352 (1) Includes $221 million and $188 million , respectively, of commercial owner occupied real estate loans at June 30, 2016 and December 31, 2015 . During the six months ended June 30, 2016 and June 30, 2015 , we transferred zero and $27 million , respectively, of loans held-for-sale to loans held-for-investment, based upon a change in our intent. During the six months ended June 30, 2016 , we sold nonperforming, TDR and non-agency loans with unpaid principal balances of $110 million . Upon a change in our intent, the loans were transferred to held-for-sale and subsequently sold resulting in a loss on sale of $2 million during the six months ended June 30, 2016 , which is recorded in net loss on sale of assets on the Consolidated Statements of Operations. The loans sold also resulted in a charge-off of $8 million during the six months ended June 30, 2016 . Also, during the six months ended June 30, 2016 , we sold performing residential first mortgage loans with unpaid principal balances of $1.2 billion . Upon a change in our intent, the loans were transferred to held-for-sale and subsequently sold resulting in a gain of $14 million , which is recorded in net gain on loan sales on the Consolidated Statements of Operations. During the six months ended June 30, 2015 , we sold interest-only residential first mortgage loans with unpaid principal balances totaling $386 million , along with $401 million of nonperforming, TDR and non-agency first mortgage loans. Upon a change in our intent, the loans were transferred to held-for-sale and subsequently sold resulting in a loss on sale of $1 million during the six months ended June 30, 2015 . The loans sold also resulted in a charge-off of $51 million during the six months ended June 30, 2015 . During the six months ended June 30, 2016 , we purchased jumbo residential first mortgage loans with an unpaid principal balance of $150 million with a premium of $1 million . During the six months ended June 30, 2015 , we purchased $197 million of HELOC loans with a premium of $7 million . We have 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 June 30, 2016 and December 31, 2015 , we pledged $4.9 billion and $5.8 billion , respectively. Allowance for Loan Losses We determine the appropriate level of the allowance on at least a quarterly basis. Refer to Note 1, "Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies" to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2015, for a description of the methodology. 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 common risk characteristics to determine our best estimate of incurred losses. The allowance for loan losses by class of loan are summarized in the following table: Residential First Mortgage (1) Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) Three Months Ended June 30, 2016 Beginning balance allowance for loan losses $ 95 $ 10 $ 20 $ 2 $ 19 $ 10 $ 6 $ 162 Charge-offs (2) (8 ) (1 ) — (1 ) — — — (10 ) Recoveries 1 1 (1 ) — — — — 1 (Benefit) provision (7 ) — 1 — — 1 2 (3 ) Ending balance allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 Three Months Ended June 30, 2015 Beginning balance allowance for loan losses $ 188 $ 12 $ 21 $ — $ 16 $ 12 $ 4 $ 253 Charge-offs (2) (19 ) (1 ) — (1 ) — — — (21 ) Recoveries 1 1 — 1 — — — 3 (Benefit) provision (19 ) 2 4 1 (1 ) — — (13 ) Ending balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 Six Months Ended June 30, 2016 Beginning balance allowance for loan losses $ 116 $ 11 $ 21 $ 2 $ 18 $ 13 $ 6 $ 187 Charge-offs (2) (19 ) (2 ) (1 ) (2 ) — — — (24 ) Recoveries 1 1 — 1 — — — 3 Provision (benefit) (17 ) — — — 1 (2 ) 2 (16 ) Ending balance allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 Six Months Ended June 30, 2015 Beginning balance allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 Charge-offs (2) (60 ) (2 ) (1 ) (1 ) — — — (64 ) Recoveries 2 1 — 1 2 — — 6 Provision (benefit) (25 ) 3 7 — (4 ) 1 1 (17 ) Ending balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 (1) Includes allowance and charge-offs related to loans with government guarantees. (2) Includes charge-offs of $2 million and $15 million related to the sale or transfer of loans during the three months ended June 30, 2016 and June 30, 2015 , respectively, and $8 million and $51 million related to the sale of loans during the six months ended June 30, 2016 and June 30, 2015 , respectively. Also includes charge-offs related to loans with government guarantees of $4 million and $7 million during the three and six months ended June 30, 2016 , respectively. The loans held-for-investment and allowance for loan losses by class of loan is summarized in the following table: Residential First Mortgage (1) Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) June 30, 2016 Loans held-for-investment Individually evaluated $ 43 $ 27 $ 6 $ — $ — $ 1 $ — $ 77 Collectively evaluated (2) 2,027 61 296 32 976 614 1,651 5,657 Total loans $ 2,070 $ 88 $ 302 $ 32 $ 976 $ 615 $ 1,651 $ 5,734 Allowance for loan losses Individually evaluated $ 7 $ 6 $ 3 $ — $ — $ — $ — $ 16 Collectively evaluated (2) 74 4 17 1 19 11 8 134 Total allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 December 31, 2015 Loans held-for-investment Individually evaluated $ 87 $ 28 $ 3 $ — $ — $ 2 $ — $ 120 Collectively evaluated (2) 3,007 65 318 31 814 550 1,336 6,121 Total loans $ 3,094 $ 93 $ 321 $ 31 $ 814 $ 552 $ 1,336 $ 6,241 Allowance for loan losses Individually evaluated $ 12 $ 6 $ 1 $ 1 $ — $ — $ — $ 20 Collectively evaluated (2) 104 5 20 1 18 13 6 167 Total allowance for loan losses $ 116 $ 11 $ 21 $ 2 $ 18 $ 13 $ 6 $ 187 (1) Includes allowance related to loans with government guarantees. (2) Excludes loans carried under the fair value option. The following table sets forth the loans held-for-investment aging analysis as of June 30, 2016 and December 31, 2015 , 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) June 30, 2016 Consumer loans Residential first mortgage $ 3 $ 1 $ 32 $ 36 $ 2,039 $ 2,075 Second mortgage — — 3 3 124 127 HELOC 2 1 9 12 334 346 Other — — — — 32 32 Total consumer loans 5 2 44 51 2,529 2,580 Commercial loans Commercial real estate — — — — 976 976 Commercial and industrial — — — — 615 615 Warehouse lending — — — — 1,651 1,651 Total commercial loans — — — — 3,242 3,242 Total loans (2) $ 5 $ 2 $ 44 $ 51 $ 5,771 $ 5,822 December 31, 2015 Consumer loans Residential first mortgage $ 7 $ 3 $ 53 $ 63 $ 3,037 $ 3,100 Second mortgage — — 2 2 133 135 HELOC 2 1 9 12 372 384 Other 1 — — 1 30 31 Total consumer loans 10 4 64 78 3,572 3,650 Commercial loans Commercial real estate — — — — 814 814 Commercial and industrial — — 2 2 550 552 Warehouse lending — — — — 1,336 1,336 Total commercial loans — — 2 2 2,700 2,702 Total loans (2) $ 10 $ 4 $ 66 $ 80 $ 6,272 $ 6,352 (1) Includes loans that are less than 90 days past due, which have been placed on nonaccrual. (2) Includes $10 million of loans 90 days or greater past due, accounted for under the fair value option at both June 30, 2016 and December 31, 2015 . 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 are determined to be nonperforming), or earlier when we become 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. Interest income is recognized on nonaccrual loans using a cash basis method. Interest that would have been accrued on impaired loans totaled less than $1 million and $1 million during the three and six months ended June 30, 2016 , respectively, and $1 million and $3 million during the three and six months ended June 30, 2015 , respectively. At June 30, 2016 and December 31, 2015 , we had no loans 90 days past due and still accruing. Troubled Debt Restructuring We may modify certain loans in both consumer and commercial loan portfolios to retain customers or to maximize collection of the outstanding loan balance. We have 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. Our 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 contemporaneous 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 June 30, 2016 (Dollars in millions) Consumer loans Residential first mortgage $ 21 $ 13 $ 34 Second mortgage 30 1 31 HELOC 21 7 28 Total consumer loans 72 21 93 Commercial loans Commercial and industrial 1 — 1 Total commercial loans 1 — 1 Total TDRs (1)(2) $ 73 $ 21 $ 94 December 31, 2015 Consumer loans Residential first mortgage $ 49 $ 27 $ 76 Second mortgage 32 1 33 HELOC 20 7 27 Total TDRs (1)(2) $ 101 $ 35 $ 136 (1) The allowance for loan losses on consumer TDR loans totaled $12 million and $15 million at June 30, 2016 and December 31, 2015 , respectively. (2) Includes $30 million and $32 million of TDR loans accounted for under the fair value option at June 30, 2016 and December 31, 2015 , 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. We measure impairments using a discounted cash flow method for performing TDRs and measure impairment based on collateral values for re-defaulted TDRs. The following table provides a summary of newly modified TDRs during the three and six months ended June 30, 2016 and 2015 . New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) Increase in Allowance at Modification Three Months Ended June 30, 2016 (Dollars in millions) Residential first mortgages 3 $ 1 $ 1 $ — Second mortgages 5 — — — HELOC (2)(3) 20 2 2 — Total TDR loans 28 $ 3 $ 3 $ — Three Months Ended June 30, 2015 Residential first mortgages 77 $ 23 $ 22 $ (2 ) Second mortgages 35 1 1 — HELOC (2) 122 8 7 — Other consumer 3 — — — Total TDR loans 237 $ 32 $ 30 $ (2 ) Six Months Ended June 30, 2016 Residential first mortgages 16 $ 3 $ 4 $ — Second mortgages 26 1 1 — HELOC (2)(3) 85 6 5 — Commercial and industrial 1 2 1 — Total TDR loans 128 $ 12 $ 11 $ — Six Months Ended June 30, 2015 Residential first mortgages 191 $ 53 $ 52 $ (1 ) Second mortgages 68 3 2 — HELOC (2)(3) 158 8 7 — Other consumer 3 — — — Total TDR loans 420 $ 64 $ 61 $ (1 ) (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) HELOC post-modification unpaid principal balance reflects write downs. (3) Includes loans carried at the fair value option. The following table provides a summary of TDR loans that were modified within the previous 12 months, which subsequently defaulted during the three and six months ended June 30, 2016 and 2015 . All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due. TDRs that were modified in the previous 12 months, which have subsequently defaulted Number of Accounts Unpaid Principal Balance Increase in Allowance at Subsequent Default Three Months Ended June 30, 2015 (Dollars in millions) Second mortgages 1 $ — $ — Total TDR loans 1 $ — $ — Six Months Ended June 30, 2016 Residential first mortgages 1 $ — $ — HELOC (1) 4 — — Total TDR loans 5 $ — $ — Six Months Ended June 30, 2015 Second mortgages 1 $ — $ — Total TDR loans 1 $ — $ — (1) HELOC post-modification unpaid principal balance reflects write downs. Impaired Loans Loans are considered impaired if it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement or when any portion of principal or interest is 90 days past due. The following table presents individually evaluated impaired loans and the associated allowance: June 30, 2016 December 31, 2015 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 $ 2 $ 2 $ — $ 20 $ 20 $ — Commercial loans Commercial and industrial 1 1 — 5 2 — $ 3 $ 3 $ — $ 25 $ 22 $ — With an allowance recorded Consumer loans Residential first mortgage $ 41 $ 41 $ 6 $ 65 $ 67 $ 12 Second mortgage 26 27 7 28 28 6 HELOC 6 6 3 3 3 1 Other consumer — — — — — 1 $ 73 $ 74 $ 16 $ 96 $ 98 $ 20 Total Consumer loans Residential first mortgage $ 43 $ 43 $ 6 $ 85 $ 87 $ 12 Second mortgage 26 27 7 28 28 6 HELOC 6 6 3 3 3 1 Other consumer — — — — — 1 Commercial loans Commercial and industrial 1 1 — 5 2 — Total impaired loans $ 76 $ 77 $ 16 $ 121 $ 120 $ 20 The following table presents average impaired loans and the interest income recognized: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 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 $ 47 $ — $ 116 $ 1 $ 60 $ 1 $ 210 $ 2 Second mortgage 27 1 31 — 27 1 31 1 HELOC 5 — 2 — 5 — 2 — Commercial loans Commercial and industrial 1 — — — 3 — — — Total impaired loans $ 80 $ 1 $ 149 $ 1 $ 95 $ 2 $ 243 $ 3 Credit Quality We utilize 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. Descriptions of our 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 we will sustain some loss if the deficiencies are not corrected. For HELOC loans and other consumer loans, we evaluate credit quality based on the aging and status of payment activity and any other known credit characteristics that call into question full repayment of the asset. Nonperforming loans are classified as either substandard, doubtful or loss. 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. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as bankable asset is not warranted. This classification does not mean that an asset has absolutely no recovery or salvage value, but, rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. 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 Consumer loans consist 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, we assign 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 June 30, 2016 (Dollars in millions) Grade Pass $ 934 $ 562 $ 1,505 $ 3,001 Watch 38 20 146 204 Special mention 3 32 — 35 Substandard 1 1 — 2 Total loans $ 976 $ 615 $ 1,651 $ 3,242 December 31, 2015 Pass $ 766 $ 492 $ 1,181 $ 2,439 Watch 42 30 155 227 Special mention 2 21 — 23 Substandard 4 9 — 13 Total loans $ 814 $ 552 $ 1,336 $ 2,702 Consumer Credit Loans Residential First Mortgage Second Mortgage HELOC Other Consumer Total June 30, 2016 (Dollars in millions) Grade Pass $ 2,019 $ 93 $ 315 $ 32 $ 2,459 Watch 21 31 22 — 74 Substandard 35 3 9 — 47 Total loans $ 2,075 $ 127 $ 346 $ 32 $ 2,580 December 31, 2015 Pass $ 2,993 $ 101 $ 353 $ 31 $ 3,478 Watch 49 32 22 — 103 Substandard 58 2 9 — 69 Total loans $ 3,100 $ 135 $ 384 $ 31 $ 3,650 |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities ("VIEs") In 2015, we executed clean-up calls of the FSTAR 2005-1 and FSTAR 2006-2 long-term debt associated with the HELOC securitization trusts. The transactions resulted in cash payments of $52 million to the debt bondholders during the year ended December 31, 2015 . After payment of the debt, the FSTAR 2005-1 and FSTAR 2006-2 HELOC securitization trusts were dissolved and we no longer have any consolidated VIEs as of December 31, 2015 . We have a continuing involvement, but are not the primary beneficiary for one unconsolidated VIE related to the FSTAR 2007-1 mortgage securitization trust. In accordance with the settlement agreement with MBIA Insurance Corporation ("MBIA"), there is no further recourse to us related to FSTAR 2007-1, unless MBIA fails to meet their obligations. At June 30, 2016 and December 31, 2015 , the FSTAR 2007-1 mortgage securitization trust included 2,762 loans and 3,061 loans, respectively, with an aggregate principal balance of $103 million and $117 million , respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights We have investments in mortgage servicing rights ("MSRs") resulting from the sale of loans to the secondary market and retaining the servicing. The primary risk associated with MSRs is the potential reduction 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. We also utilize 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. Our portfolio of MSRs is highly sensitive to movements in interest rates. There is also a risk of valuation decline due to higher than expected increases in default rates, which we do not believe can be effectively managed using derivatives. See Note 8 of the Notes to the Consolidated Financial Statements, herein, for further information regarding the derivative instruments utilized to manage our MSR risks. Changes in the carrying value of residential first mortgage MSRs, accounted for at fair value, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Balance at beginning of period $ 281 $ 279 $ 296 $ 258 Additions from loans sold with servicing retained 65 77 122 146 Reductions from sales — (49 ) (24 ) (71 ) Changes in fair value due to (1) Decrease in MSR due to pay-offs, pay-downs and run-off (15 ) (11 ) (26 ) (26 ) Changes in estimates of fair value (2) (30 ) 21 (67 ) 10 Fair value of MSRs at end of period $ 301 $ 317 $ 301 $ 317 (1) Changes in fair value are included within net (loss) return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes in interest rates. 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: June 30, 2016 December 31, 2015 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 8.37 % $ 293 $ 285 8.24 % $ 287 $ 279 Constant prepayment rate 16.38 % 287 274 12.63 % 285 275 Weighted average cost to service per loan $ 70.99 297 293 $ 71.86 292 288 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 constant. In practice, a change in one assumption generally impacts other assumptions, which may either magnify or counteract the effect of the change. See Note 18 of the Notes to the Consolidated Financial Statements, herein, for further fair value disclosures relating to mortgage servicing rights. Contractual servicing and subservicing fees . Contractual servicing and subservicing fees, including late fees and other ancillary income are presented below. Contractual servicing fees are included within net (loss) return on mortgage servicing rights 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 the servicing fees: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Income on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 21 $ 17 $ 38 $ 34 Changes in fair value (2) (45 ) 12 (93 ) (14 ) Gain on MSR derivatives (3) 19 (14 ) 45 (5 ) Net transaction costs 1 (6 ) — (8 ) Total (loss) return, included in net return on mortgage servicing rights $ (4 ) $ 9 $ (10 ) $ 7 (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 three and six months ended June 30, 2015. (3) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The agency servicing fees, ancillary income and late fees increased during the six month ended June 30, 2016, as compared to the six month ended June 30, 2015, primarily driven by the higher amount of loans serviced and fewer MSR sales during 2016. The following table summarizes income and fees associated on our mortgage loans subserviced: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Income on mortgage loans subserviced Subservicing fees, ancillary income and late fees (1) $ 7 $ 9 $ 14 $ 16 Other servicing charges (3 ) (2 ) (4 ) (5 ) Total income, included in loan administration $ 4 $ 7 $ 10 $ 11 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on cash basis. The subservice fees decreased during the six month ended June 30, 2016, as compared to the six month ended June 30, 2015, primarily due to a decrease in subservice volume near the end of 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
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 non-performance risk inherent in all its derivative contracts is minimal based on credit standards and the collateral provisions of the derivative agreements. A majority of the Company’s derivatives are centrally cleared through a Central Counterparty Clearing House or consist of residential mortgage interest rate lock commitments further limiting non-performance risk. 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: We have designated certain interest rate swaps as cash flow hedges of certain interest rate payments of our variable-rate Federal Home Loan Bank (FHLB) advances. We have also designated certain interest rate swaps as fair value hedges of certain FHLB advances. 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 recognized in earnings. At June 30, 2016 , we had $40 million (net-of-tax) recorded of unrealized losses on derivatives classified as cash flow hedges recorded in accumulated other comprehensive income (loss), compared to $3 million at December 31, 2015 . The estimated amount to be reclassified from other comprehensive income into earnings during the next 12 months represents $8 million of losses (net-of-tax). Changes in the fair value of the derivatives designated as a fair value hedge are recorded in interest expense, in the same line as changes in the fair value of the FHLB debt, the hedged item, in the current period to the extent it is effective. Derivatives that are designated in hedging relationships are assessed for effectiveness using regression analysis at inception and throughout the hedge period. All hedge relationships were highly effective as of June 30, 2016 . Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item. The net gain (loss) recognized in income on derivative instruments, net of the impact of offsetting positions, were as follows: Three Months Ended June 30, Six Months Ended June 30, Location of Gain/(Loss) 2016 2015 2016 2015 (Dollars in millions) Derivatives not designated as hedging instruments: U.S. Treasury, swap and euro dollar futures Net (loss) return on mortgage servicing rights $ 1 $ (3 ) $ 4 $ 3 Interest rate swaps and swaptions Net (loss) return on mortgage servicing rights 13 (8 ) 28 (8 ) Mortgage backed securities forwards Net (loss) return on mortgage servicing rights 5 (3 ) 13 — Rate lock commitments and forward agency and loan sales Net gain on loan sales (6 ) 10 (1 ) 20 Rate lock commitments Other noninterest income — (1 ) 1 — Interest rate swaps Other noninterest income (1 ) — 1 — Total derivative (loss) gain $ 12 $ (5 ) $ 46 $ 15 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) June 30, 2016 Derivatives designated as hedging instruments: Assets Interest rate swaps on FHLB advances $ 250 $ 2 2020 Liabilities (1) Interest rate swaps on FHLB advances $ 825 $ 56 2023-2025 Derivatives not designated as hedging instruments: Assets (2) U.S. Treasury, swap and euro dollar futures $ 749 $ 3 2016-2020 Mortgage backed securities forwards 468 4 2016 Rate lock commitments 6,305 83 2016 Interest rate swaps and swaptions 2,337 88 2016-2046 Total derivative assets $ 9,859 $ 178 Liabilities (1) U.S. Treasury, swap and euro dollar futures $ 7,903 $ 3 2016-2019 Mortgage backed securities forwards 6,054 58 2016 Rate lock commitments 46 — 2016 Interest rate swaps 510 18 2016-2026 Total derivative liabilities $ 14,513 $ 79 December 31, 2015 Derivatives designated as hedging instruments: Liabilities (1) Interest rate swaps on FHLB advances $ 825 $ 4 2023-2025 Derivatives not designated as hedging instruments: Assets (2) U.S. Treasury, swap and euro dollar futures $ 1,892 $ — 2016-2019 Mortgage backed securities forwards 1,931 7 2016 Rate lock commitments 3,593 26 2016 Interest rate swaps and swaptions 1,554 25 2016-2035 Total derivative assets $ 8,970 $ 58 Liabilities (1) U.S. Treasury, swap and euro dollar futures $ 768 $ 1 2016-2019 Mortgage backed securities forwards 2,655 6 2016 Rate lock commitments 168 — 2016 Interest rate swaps 422 7 2016-2025 Total derivative liabilities $ 4,013 $ 14 (1) Derivatives liabilities are included in other liabilities on the Consolidated Statements of Financial Condition. (2) Derivative assets are included in other assets on the Consolidated Statements of Financial Condition. The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Not Offset in the Statement of Financial Position Gross Amount Gross Amounts Netted in the Statement of Financial Position Net Amount Presented in the Statement of Financial Position Financial Instruments Cash Collateral (Dollars in millions) June 30, 2016 Derivatives designated as hedging instruments: Assets Interest rate swaps on FHLB advances (1) $ 2 $ 2 $ — $ — $ — Liabilities Interest rate swaps on FHLB advances (1) $ 56 $ 2 $ 54 $ — $ 35 Derivatives not designated as hedging instruments: Assets U.S. Treasury, swap and euro dollar futures $ 3 $ 3 $ — $ — $ — Mortgage backed securities forwards 4 — 4 — — Interest rate swaps and swaptions (1) 88 — 88 — 19 Total derivative assets $ 95 $ 3 $ 92 $ — $ 19 Liabilities U.S. Treasury, swap and euro dollar futures $ 3 $ 3 $ — $ — $ 5 Mortgage backed securities forwards 58 — 58 — 62 Interest rate swaps and swaptions (1) 18 — 18 — 14 Total derivative liabilities $ 79 $ 3 $ 76 $ — $ 81 December 31, 2015 Derivatives designated as hedging instruments: Liabilities Interest rate swaps on FHLB advances $ 4 $ — $ 4 $ — $ 19 Derivatives not designated as hedging instruments: Assets Mortgage backed securities forwards $ 7 $ — $ 7 $ — $ 4 Interest rate swaps and swaptions (1) 25 — 25 — 10 Total derivative assets $ 32 $ — $ 32 $ — $ 14 Liabilities U.S. Treasury, swap and euro dollar futures $ 1 $ — $ 1 $ — $ 2 Mortgage backed securities forwards 6 — 6 — 8 Interest rate swaps and swaptions (1) 7 — 7 — 12 Total derivative liabilities $ 14 $ — $ 14 $ — $ 22 (1) Additional funds are pledged to a Central Counterparty Clearing House in the amount of $32 million as of June 30, 2016 and $7 million as of December 31, 2015 to maintain initial margin requirements. This collateral is in addition to the amount required to be maintained for potential market changes shown in the cash collateral column above. We pledged a total of $116 million of cash collateral to counterparties and had an obligation to return cash of $19 million at June 30, 2016 for derivative activities. We pledged a total of $41 million of cash collateral to counterparties and had an obligation to return cash of $14 million at December 31, 2015 for derivative activities. The net cash pledged is restricted and is included in other assets on the Consolidated Statements of Financial Condition. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The portfolio of Federal Home Loan Bank advances includes short-term adjustable rate, short-term fixed rate advances, long-term LIBOR adjustable advances, and long-term fixed rate advances. The following is a breakdown of the advances outstanding: June 30, 2016 December 31, 2015 Amount Rate Amount Rate (Dollars in millions) Short-term adjustable rate $ 1 0.70 % $ — — % Short-term fixed rate term advances 1,068 0.40 % 2,116 0.32 % Long-term LIBOR adjustable advances 1,025 0.80 % 825 0.70 % Long-term fixed rate advances (1) 552 1.44 % 600 1.37 % Total $ 2,646 0.77 % $ 3,541 0.59 % (1) Includes the current portion of fixed rate advances of $125 million and $175 million at June 30, 2016 and December 31, 2015 , respectively. We settled $375 million in long-term fixed rate Federal Home Loan Bank advances during the fourth quarter 2015, which resulted in a gain on extinguishment of debt of $3 million , included in other noninterest income. We are required to maintain a minimum amount of qualifying collateral. In the event of default, the Federal Home Loan Bank advance is similar to a secured borrowing, whereby the Federal Home Loan Bank has the right to sell the pledged collateral to settle the fair value of the outstanding advances. At June 30, 2016 , we had the authority and approval from the Federal Home Loan Bank to utilize a line of credit of up to $7.0 billion and we may access that line to the extent that collateral is provided. At June 30, 2016 , we had $2.6 billion of advances outstanding and an additional $0.9 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 June 30, 2016 , $1.0 billion 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Maximum outstanding at any month end $ 2,646 $ 2,198 $ 3,557 $ 2,198 Average outstanding balance 2,460 1,828 2,841 1,497 Average remaining borrowing capacity 983 1,503 843 1,697 Weighted average interest rate 1.42 % 0.90 % 1.25 % 0.97 % The following outlines our Federal Home Loan Bank advance final maturity dates as of June 30, 2016 : June 30, 2016 (Dollars in millions) 2016 $ 1,194 2017 50 2018 125 2019 — Thereafter 1,277 Total $ 2,646 Trust Preferred Securities We sponsor nine trust subsidiaries, which issued trust preferred securities to third-party investors and loaned the proceeds to us 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. The junior subordination notes (trust preferred securities) are callable by us. Interest is payable quarterly at a rate equal to the interest rate being earned by the trust; however, we may defer interest payments for up to 20 quarters without default or penalty. In January 2012, we exercised our contractual rights to defer interest payments with respect to junior subordinated notes. At June 30, 2016 , we have deferred for 18 quarters and have $31 million accrued for these deferred interest payments. We brought payments current as of July 14, 2016. For further information on the subsequent event related to our redemption of TARP, see Note 21 of the Notes to the Consolidated Financial Statements, herein. The following table presents the carrying value on each of our junior subordinated notes, along with the related interest rates of the long-term debt as of the dates indicated: June 30, 2016 December 31, 2015 (Dollars in millions) Trust Preferred Securities Floating Three Month LIBOR Plus 3.25%, matures 2032 $ 26 3.89 % $ 26 3.85 % Plus 3.25%, matures 2033 26 3.88 % 26 3.57 % Plus 3.25%, matures 2033 26 3.88 % 26 3.85 % Plus 2.00%, matures 2035 26 2.63 % 26 2.32 % Plus 2.00%, matures 2035 26 2.63 % 26 2.32 % Plus 1.75%, matures 2035 51 2.40 % 51 2.26 % Plus 1.50%, matures 2035 25 2.13 % 25 1.82 % Plus 1.45%, matures 2037 25 2.10 % 25 1.96 % Plus 2.50%, matures 2037 16 3.15 % 16 3.01 % Total long-term debt $ 247 $ 247 |
Representation and Warranty Res
Representation and Warranty Reserve | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Balance, beginning of period $ 40 $ 53 $ 40 $ 53 Provision (release) Charged to gain on sale for current loan sales 1 2 3 4 Charged to representation and warranty benefit (4 ) (5 ) (6 ) (7 ) Total (3 ) (3 ) (3 ) (3 ) Charge-offs, net (1 ) (2 ) (1 ) (2 ) Balance, end of period $ 36 $ 48 $ 36 $ 48 At the time a loan is sold, an estimate of the fair value of the guarantee 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 losses. Changes in the estimate are recorded in the representation and warranty provision (benefit) on the Consolidated Statements of Operations. Due to our sustained low level of charge-offs and a lower level of open and forecasted future repurchase demands, we have reduced our estimate of probable losses related to our representation and warranty liability as of June 30, 2016 compared to June 30, 2015. We have recognized benefits recorded in the representation and warranty provision (benefit) on the Consolidated Statements of Operations during the three and six months ended June 30, 2016 . |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants May Investor Warrant We granted warrants (the "May Investor Warrants") to the May Investors on January 30, 2009 under anti-dilution provisions applicable to certain investors (the "May Investors") in our May 2008 private placement capital raise. For the six months ended June 30, 2016 , there were no May Investor Warrants exercised. The May Investors held warrants to purchase 615,962 shares at an exercise price of $10.00 at June 30, 2016 . The May Investor Warrants do not meet the definition of a contract that is indexed to our own stock under U.S. GAAP. Therefore, the May Investor Warrants are classified as "other liabilities" on the Consolidated Statements of Financial Condition and are measured at fair value. Warrant liabilities are valued using a binomial lattice model and are classified within Level 2 of the valuation hierarchy. Significant observable inputs include share price, expected volatility, a risk free rate and an expected life. At June 30, 2016 and December 31, 2015 , the liability from May Investors Warrants amounted to $9 million and $8 million , respectively. Warrant liabilities are reported in "other liabilities" on the Consolidated Statements of Financial Condition. See Note 18 of the Notes to the Consolidated Financial Statements, herein, for further recurring fair value disclosures. The warrants are accounted for under the equity method. TARP Warrant On January 30, 2009, we 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 645,138 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 and will remain outstanding subsequent to the redemption of TARP, see further information in Note 21 of the Notes to the Consolidated Financial Statements, herein. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in accumulated other comprehensive income (loss) for each type of 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 Accumulated Other Comprehensive Income (Loss) Net of Tax (Dollars in millions) Accumulated other comprehensive income (loss) ("AOCI") Balance at December 31, 2015, net of tax $ 5 $ — $ (3 ) $ 2 Net unrealized loss, net of tax — 16 (44 ) (28 ) Reclassifications out of AOCI (1 ) 1 7 7 Balance at June 30, 2016, net of tax $ 4 $ 17 $ (40 ) $ (19 ) Balance at December 31, 2014, net of tax $ — $ 8 $ — $ 8 Balance at June 30, 2015, net of tax $ — $ 8 $ — $ 8 Stockholders’ Equity Preferred Stock 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 June 30, 2016 is summarized as follows: Rate Earliest Redemption Date Shares Outstanding Preferred Shares (Dollars in millions) Series C Preferred Stock 9.0 % 1/31/2012 266,657 $ 267 Our Series C Preferred Stock was issued under the Troubled Asset Relief Program ("TARP") Capital Purchase Program. The U.S. government subsequently sold the Series C Preferred Stock to unrelated third-parties. At June 30, 2016 , we have deferred $102 million of dividend payments, which is not reflected in the Consolidated Financial Statements until paid. For further information on the subsequent event related to our redemption of TARP, see Note 21 of the Notes to the Consolidated Financial Statements, herein. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in accumulated other comprehensive income (loss) for each type of 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 Accumulated Other Comprehensive Income (Loss) Net of Tax (Dollars in millions) Accumulated other comprehensive income (loss) ("AOCI") Balance at December 31, 2015, net of tax $ 5 $ — $ (3 ) $ 2 Net unrealized loss, net of tax — 16 (44 ) (28 ) Reclassifications out of AOCI (1 ) 1 7 7 Balance at June 30, 2016, net of tax $ 4 $ 17 $ (40 ) $ (19 ) Balance at December 31, 2014, net of tax $ — $ 8 $ — $ 8 Balance at June 30, 2015, net of tax $ — $ 8 $ — $ 8 Stockholders’ Equity Preferred Stock 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 June 30, 2016 is summarized as follows: Rate Earliest Redemption Date Shares Outstanding Preferred Shares (Dollars in millions) Series C Preferred Stock 9.0 % 1/31/2012 266,657 $ 267 Our Series C Preferred Stock was issued under the Troubled Asset Relief Program ("TARP") Capital Purchase Program. The U.S. government subsequently sold the Series C Preferred Stock to unrelated third-parties. At June 30, 2016 , we have deferred $102 million of dividend payments, which is not reflected in the Consolidated Financial Statements until paid. For further information on the subsequent event related to our redemption of TARP, see Note 21 of the Notes to the Consolidated Financial Statements, herein. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects 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 our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions, except share data) Net income $ 47 $ 46 $ 86 $ 78 Deferred cumulative preferred stock dividends (8 ) (7 ) (16 ) (15 ) Net income applicable to common stock $ 39 $ 39 $ 70 $ 63 Weighted average shares Weighted average common shares outstanding 56,574,796 56,436,026 56,544,256 56,410,880 Effect of dilutive securities May Investor warrants (1) 349,539 299,391 327,307 266,118 Stock-based awards 826,895 429,655 751,518 294,135 Weighted average diluted common shares 57,751,230 57,165,072 57,623,081 56,971,133 Earnings per common share Basic earnings per common share $ 0.67 $ 0.69 $ 1.23 $ 1.12 Effect of dilutive securities Stock-based awards (0.01 ) (0.01 ) (0.02 ) (0.01 ) Diluted earnings per share $ 0.66 $ 0.68 $ 1.21 $ 1.11 (1) Exercise price of $10.00 per share and a fair value of $9 million at June 30, 2016 . Under the terms of the Series C Preferred Stock we may defer dividend payments. We elected to defer dividend payments beginning with the February 2012 dividend. Although not included in quarterly net income from continuing operations, the deferral still impacts net income applicable to common stock for the purpose of calculating earnings per share, as shown above. The cumulative amount in arrears as of June 30, 2016 was $102 million . For further information on the subsequent event related to our redemption of TARP, see Note 21 of the Notes to the Consolidated Financial Statements, herein. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in interim periods require us 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Provision for income taxes $ 22 $ 28 $ 43 $ 46 Effective tax provision rate 32.7 % 37.2 % 33.4 % 37.0 % We believe that it is unlikely that the unrecognized tax benefits will change by a material amount during the next 12 months . We recognize interest and penalties related to unrecognized tax benefits in income tax expense. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory Capital We, along with 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. 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. 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. We, along with the Bank, are considered "well-capitalized" at both June 30, 2016 and December 31, 2015 . There have been no conditions or events that management believes have changed our 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) June 30, 2016 Tangible capital (to tangible assets) $ 1,514 11.59 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,514 11.59 % $ 523 4.0 % $ 653 5.0 % Common equity Tier 1 capital (to RWA) 1,086 13.55 % 361 4.5 % 521 6.5 % Tier 1 capital (to risk-weighted assets) 1,514 18.89 % 481 6.0 % 642 8.0 % Total capital (to risk-weighted assets) 1,618 20.19 % 642 8.0 % 802 10.0 % December 31, 2015 Tangible capital (to tangible assets) $ 1,435 11.51 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,435 11.51 % $ 499 4.0 % $ 624 5.0 % Common equity Tier 1 capital (to RWA) 1,065 14.09 % 340 4.5 % 491 6.5 % Tier 1 capital (to risk-weighted assets) 1,435 18.98 % 454 6.0 % 605 8.0 % Total capital (to risk-weighted assets) 1,534 20.28 % 605 8.0 % 756 10.0 % N/A - Not applicable Bank Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2016 Tangible capital (to tangible assets) $ 1,576 12.03 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,576 12.03 % $ 524 4.0 % $ 655 5.0 % Common equity tier 1 capital (to RWA) 1,576 19.58 % 362 4.5 % 524 6.5 % Tier 1 capital (to risk-weighted assets) 1,576 19.58 % 483 6.0 % 644 8.0 % Total capital (to risk-weighted assets) 1,679 20.86 % 644 8.0 % 806 10.0 % December 31, 2015 Tangible capital (to tangible assets) $ 1,472 11.79 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,472 11.79 % $ 500 4.0 % $ 625 5.0 % Common equity tier 1 capital (to RWA) 1,472 19.42 % 341 4.5 % 493 6.5 % Tier 1 capital (to risk-weighted assets) 1,472 19.42 % 455 6.0 % 607 8.0 % Total capital (to risk-weighted assets) 1,570 20.71 % 607 8.0 % 758 10.0 % N/A - Not applicable |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings, Contingencies and Commitments | Legal Proceedings, Contingencies and Commitments Legal Proceedings We and our 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. We assess the liabilities and loss contingencies in connection with such pending or threatened legal and regulatory proceedings on at least a quarterly basis and establish accruals when we believe 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 will be material to our financial statements, or that the ultimate outcome of these actions will have a material adverse effect on our financial condition, results of operations or cash flows. DOJ litigation settlement In 2012, the Bank entered into a Settlement Agreement with the United States Department of Justice ("DOJ") which meets the definition of a financial liability (the "DOJ Liability"). In accordance with the Settlement Agreement, we made an initial payment of $15 million and agreed to make future annual payments totaling $118 million . The Settlement Agreement provides that the Bank will make annual payments of up to $25 million towards payment of the $118 million still due upon meeting certain conditions including: (a) the reversal of the deferred tax asset valuation allowance, which occurred at the end of 2013; (b) the repayment of the Fixed Rate Cumulative Perpetual Preferred Stock, Series C (the "TARP Preferred") (or, in the absence of repayment, adjusting our Bank Tier 1 Capital Ratio for any unextinguished TARP Preferred); and (c) our Bank’s Tier 1 Leverage Capital Ratio is 11 percent or more. Additionally, if the Bank and Bancorp become party to a business combination in which the Bank or Bancorp represent less than 33.3 percent of the resulting company’s assets, such annual payments must commence twelve months after the date of that business combination. At June 30, 2016, the TARP Preferred was not repaid and the Bank’s Tier 1 Leverage Capital Ratio was below 11 percent after adjusting for the unextinguished TARP Preferred. We elected to account for the DOJ Liability under the fair value option. To determine the fair value, we utilize a discounted cash flow model. Key assumptions for the discounted cash flow model include using a discount rate as of June 30, 2016 of 6.9 percent ; probability weightings of multiple cash flow scenarios and possible outcomes which contemplate the above conditions and estimates of forecasted net income, size of the balance sheet, capital levels, dividends and their impact on the timing of cash payments and the assumptions we believe a market participant would make to transfer the liability. The fair value of the DOJ Liability was $84 million at both June 30, 2016 and December 31, 2015 . For further information on the settlement agreement and the redemption of the TARP preferred, which occurred on July 29, 2016, see Note 21 of the Notes to the Consolidated Financial Statements and the capital section within Management's Discussion and Analysis within this Form 10-Q, herein. Other litigation accruals At June 30, 2016 and December 31, 2015 , excluding the fair value liability relating to the DOJ litigation settlement, our total accrual for contingent liabilities and settled litigation was $9 million and $2 million , respectively. The increase in liability was due to the settlement of a class action lawsuit during the period which was not paid as of June 30, 2016 . Commitments A summary of the contractual amount of significant commitments is as follows: June 30, 2016 December 31, 2015 (Dollars in millions) Commitments to extend credit Mortgage loans interest-rate lock commitments $ 6,398 $ 3,792 HELOC commitments 161 150 Other consumer commitments 33 22 Warehouse loan commitments 779 871 Standby and commercial letters of credit 18 13 Commercial and industrial commitments 157 151 Other commercial commitments 723 497 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. We evaluate each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us, upon extension of credit is based on management's credit evaluation of the counterparties. We enter into mortgage interest-rate lock commitments with our 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 of the Notes to the Consolidated Financial Statements, herein. We have unfunded commitments under our contractual arrangement with the HELOC borrowers. Commitments to extend, originate or purchase credit are primarily lines of credit to consumers and have specified rates and maturity dates. Many of these commitments also have adverse change clauses, which allow us to cancel the commitment due to deterioration in the borrowers’ creditworthiness. 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 loans are used to repay the draw on the line used to fund the loans. 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. Our 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. We utilize the same credit policies in making commitments and conditional obligations as we do 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. We maintain a reserve for the estimate of 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 $3 million and $2 million for June 30, 2016 and December 31, 2015 , respectively, is reflected in other liabilities on the Consolidated Statements of Financial Condition. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management's judgment, assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Refer to Note 24 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2015 for a description of our valuation methodologies and information about the fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis. The following tables present the financial instruments carried at fair value as of June 30, 2016 and December 31, 2015 , by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy. Level 1 Level 2 Level 3 Total Fair Value June 30, 2016 (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 640 $ — $ 640 Agency - Residential — 473 — 473 Municipal obligations — 32 — 32 Loans held-for-sale Residential first mortgage loans — 3,071 — 3,071 Loans held-for-investment Residential first mortgage loans — 6 — 6 Second mortgage loans — — 38 38 HELOC loans — — 44 44 Mortgage servicing rights — — 301 301 Derivative assets 3 92 83 178 Total assets at fair value $ 3 $ 4,314 $ 466 $ 4,783 Derivative liabilities $ (3 ) $ (130 ) $ — $ (133 ) Warrant liabilities — (9 ) — (9 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (3 ) $ (139 ) $ (84 ) $ (226 ) Level 1 Level 2 Level 3 Total Fair Value December 31, 2015 (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 766 $ — $ 766 Agency - Residential — 514 — 514 Municipal obligations — 14 — 14 Loans held-for-sale Residential first mortgage loans — 2,541 — 2,541 Loans held-for-investment Residential first mortgage loans — 6 — 6 Second mortgage loans — — 42 42 HELOC loans — — 64 64 Mortgage servicing rights — — 296 296 Derivative assets — 32 26 58 Total assets at fair value $ — $ 3,873 $ 428 $ 4,301 Derivative liabilities $ (1 ) $ (17 ) $ — $ (18 ) Warrant liabilities — (8 ) — (8 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (1 ) $ (25 ) $ (84 ) $ (110 ) We had no transfers of assets or liabilities recorded at fair value between fair value levels during the six months ended June 30, 2016 and 2015 . We 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. Gains and losses for individual lines in the tables do not reflect the effect of our 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 six months ended June 30, 2016 and 2015 (including the change in fair value) for financial instruments classified by us within level 3 of the valuation hierarchy: Recorded in Earnings Recorded in OCI Three Months Ended June 30, 2016 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Balance at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 40 $ — $ — $ — $ — $ — $ (2 ) $ 38 HELOC loans 55 (3 ) — — — — (8 ) 44 Mortgage servicing rights 281 (44 ) — — 64 — — 301 Totals $ 376 $ (47 ) $ — $ — $ 64 $ — $ (10 ) $ 383 Liabilities DOJ litigation settlement $ (84 ) $ — $ — $ — $ — $ — $ — $ (84 ) Derivative financial instruments (net) Rate lock commitments $ 61 $ 58 $ — $ — $ 106 $ (126 ) $ (16 ) $ 83 Three Months Ended June 30, 2015 Assets Other investments $ 100 $ — $ — $ — $ — $ — $ — $ 100 Investment securities available-for-sale Loans held-for-investment Second mortgage loans 50 2 — — — — (4 ) 48 HELOC loans 113 (2 ) — — — — (18 ) 93 Mortgage servicing rights 279 10 — — 77 (49 ) — 317 Totals $ 542 $ 10 $ — $ — $ 77 $ (49 ) $ (22 ) $ 558 Liabilities Long-term debt $ (70 ) $ — $ (1 ) $ — $ — $ 24 $ 11 $ (36 ) DOJ litigation settlement (82 ) (2 ) — — — — — (84 ) Totals $ (152 ) $ (2 ) $ (1 ) $ — $ — $ 24 $ 11 $ (120 ) Derivative financial instruments (net) Rate lock commitments $ 55 $ (30 ) $ — $ — $ 93 $ (75 ) $ (13 ) $ 30 Recorded in Earnings Recorded in OCI Six Months Ended June 30, 2016 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Balance at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 42 $ 1 $ — $ — $ — $ — $ (5 ) 38 HELOC loans 64 (3 ) — — — — (17 ) 44 Mortgage servicing rights 296 (92 ) — — 121 (24 ) — 301 Totals $ 402 $ (94 ) $ — $ — $ 121 $ (24 ) $ (22 ) $ 383 Liabilities DOJ litigation $ (84 ) $ — $ — $ — $ — $ — $ — (84 ) Derivative financial instruments (net) Rate lock commitments $ 26 $ 120 $ — $ — $ 187 $ (220 ) $ (30 ) $ 83 Six Months Ended June 30, 2015 Assets Other investments $ 100 $ — $ — $ — $ — $ — $ — $ 100 Investment securities available-for-sale Municipal obligation 2 — — — — — (2 ) — Loans held-for-investment Second mortgage loans 53 2 1 — — — (8 ) 48 HELOC loans 132 (6 ) — — — — (33 ) 93 Mortgage servicing rights 258 (16 ) — — 146 (71 ) — 317 Totals $ 545 $ (20 ) $ 1 $ — $ 146 $ (71 ) $ (43 ) $ 558 Liabilities Long-term debt $ (84 ) $ — $ (3 ) $ — $ — $ 24 $ 27 $ (36 ) DOJ litigation (82 ) (2 ) — — — — — (84 ) Totals $ (166 ) $ (2 ) $ (3 ) $ — $ — $ 24 $ 27 $ (120 ) Derivative financial instruments (net) Rate lock commitments $ 31 $ 7 $ — $ — $ 191 $ (172 ) $ (27 ) $ 30 The following tables present the quantitative information about recurring level 3 fair value financial instruments and the fair value measurements as of June 30, 2016 and December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) June 30, 2016 (Dollars in millions) Assets Second mortgage loans $ 38 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%)10.9% - 16.4% (13.6%) HELOC loans $ 44 Discounted cash flows Discount rate 7.8% - 11.7% (9.7%) Mortgage servicing rights $ 301 Discounted cash flows Option adjusted spread 6.7% - 10.1% (8.4%) Liabilities DOJ litigation settlement $ (84 ) Discounted cash flows Discount rate 5.6% - 8.3% (6.9%) Derivative financial instruments Rate lock commitments $ 83 Consensus pricing Origination pull-through rate 65.5% - 98.3% (81.9%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 (Dollars in millions) Assets Second mortgage loans $ 42 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%)13.5% - 20.2% (16.9%) HELOC loans $ 64 Discounted cash flows Discount rate 6.8% - 10.1% (8.4%) Mortgage servicing rights $ 296 Discounted cash flows Option adjusted spread 6.6% - 9.9% (8.2%) Liabilities DOJ litigation settlement $ (84 ) Discounted cash flows Discount rate 4.9% - 9.5% (7.2%) Derivative financial instruments Rate lock commitments $ 26 Consensus pricing Origination pull-through rate 67.6% - 101.5% (84.6%) Recurring Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the second mortgage loans are discount rates, constant prepayment rates, and default rates. The constant prepayment and default rates are based on a 12 month historical average. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. Increases (decreases) in prepay rates in isolation result in a higher (lower) fair value and increases (decreases) in default rates in isolation result in a lower (higher) fair value. The HELOC loans are valued utilizing a loan-level discounted cash flow model which projects expected cash flows given three potential outcomes: (1) paid-in-full at scheduled maturity, (2) default at scheduled maturity (foreclosure), and (3) modification at scheduled maturity into an amortizing HELOC. Loans are placed into the potential outcome buckets based on their underlying current delinquency, FICO scores and property CLTV all of which are unobservable inputs. Estimated cash flows are then discounted back using an unobservable discount rate. Loans within the HELOC portfolio contain FICO scores with a minimum of 444 , maximum of 817 , and a weighted average of 665 . For the HELOC loans, increases (decreases) in the discount rate, in isolation, would lower (higher) the fair value measurement. 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. Additionally, the key economic assumptions used in determining the fair value of MSRs capitalized during the three and six months ended June 30, 2016 and 2015 periods were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average life (in years) 7.0 8.4 7.0 7.9 Weighted average constant prepayment rate 13.3 % 9.3 % 13.5 % 11.4 % Weighted average option adjusted spread 8.9 % 8.7 % 8.2 % 8.6 % The key economic assumptions reflected in the overall fair value of the entire portfolio of MSRs were as follows: June 30, December 31, Weighted average life (in years) 5.9 7.3 Weighted average constant prepayment rate 16.4 % 12.6 % Weighted average option adjusted spread 8.4 % 8.2 % 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 our 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 input used in the fair value measurement of the DOJ litigation settlement is the discount rate. Significant increases (decreases) in the discount rate in isolation could result in a marginally lower (higher) fair value measurement. For further information on the fair value inputs related to the DOJ litigation, see Note 17 of the Notes to the Consolidated Financial Statements, herein. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets are measured at the lower of cost or market and had a fair value below cost at the end of the period as summarized below: Total (1) Level 2 Level 3 (Dollars in millions) June 30, 2016 Loans held-for-sale (2) $ 16 $ 16 $ — Impaired loans held-for-investment (3) Residential first mortgage loans 25 — 25 Commercial and industrial loans 1 — 1 Repossessed assets (4) 19 — 19 Totals $ 61 $ 16 $ 45 December 31, 2015 Loans held-for-sale (2) $ 8 $ 8 $ — Impaired loans held-for-investment (3) Residential first mortgage loans 40 — 40 Commercial real estate loans 2 — 2 Repossessed assets (4) 17 — 17 Totals $ 67 $ 8 $ 59 (1) The fair values are obtained at various dates during the six months ended June 30, 2016 and the year ended December 31, 2015 , respectively. (2) We recorded less than $1 million and $1 million in fair value losses on loans held-for-sale for which we did not elect the fair value option (included in interest income on the Consolidated Statements of Operations) during the three and six months ended June 30, 2016 , respectively compared to less than $1 million and $1 million in fair value losses on loans held-for-sale during the three and six months ended June 30, 2015 , respectively. (3) We recorded $9 million and $20 million in fair value losses on impaired loans (included in provision (benefit) for loan losses on Consolidated Statements of Operations) during the three and six months ended June 30, 2016 , respectively, compared to $21 million and $56 million in fair value losses on impaired loans during the three and six months ended June 30, 2015 , respectively. (4) We recorded $3 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 six months ended June 30, 2016 , respectively and recognized net gain of zero and $1 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 six months ended June 30, 2016 . We recorded zero and $1 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and six months ended June 30, 2015 , respectively, and recognized a net gains of $1 million and $1 million on sales of repossessed assets during the three and six months ended June 30, 2015 , respectively. The following tables present the quantitative information about nonrecurring level 3 fair value financial instruments and the fair value measurements as of June 30, 2016 and December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) June 30, 2016 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 25 Fair value of collateral Loss severity discount 20% - 25% (21.7%) Commercial and industrial loans $ 1 Fair value of collateral Loss severity discount 50% - 55% (53.6%) Repossessed assets $ 19 Fair value of collateral Loss severity discount 18% - 99% (58.4%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 40 Fair value of collateral Loss severity discount 35% - 45% (35.2%) Commercial real estate loans $ 2 Fair value of collateral Loss severity discount 45% - 55% (50.1%) Repossessed assets $ 17 Fair value of collateral Loss severity discount 16% - 100% (48.7%) Nonrecurring 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 table presents the carrying amount and estimated fair value of financial instruments that are carried either at fair value, cost, or amortized cost: June 30, 2016 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 184 $ 184 $ 184 $ — $ — Investment securities available-for-sale 1,145 $ 1,145 — 1,145 — Investment securities held-to-maturity 1,211 $ 1,237 — 1,237 — Loans held-for-sale 3,091 3,094 — 3,094 — Loans with government guarantees 435 422 — 422 — Loans held-for-investment, net 5,672 5,640 — 6 5,634 Repossessed assets 19 19 — — 19 Federal Home Loan Bank stock 172 172 — 172 — Mortgage servicing rights 301 301 — — 301 Bank owned life insurance 267 267 — 267 — Other assets, foreclosure claims 178 178 — 178 — Derivative financial instruments, assets 178 178 3 92 83 Liabilities Retail deposits Demand deposits and savings accounts $ (5,071 ) $ (4,863 ) $ — $ (4,863 ) $ — Certificates of deposit (1,023 ) (1,038 ) — (1,038 ) — Government deposits (974 ) (962 ) — (962 ) — Company controlled deposits (1,503 ) (1,459 ) — (1,459 ) — Federal Home Loan Bank advances (2,646 ) (2,635 ) — (2,635 ) — Other long-term debt (247 ) (77 ) — (77 ) — Warrant liabilities (9 ) (9 ) — (9 ) — DOJ litigation settlement (84 ) (84 ) — — (84 ) Derivative financial instruments, liabilities (133 ) (133 ) (3 ) (130 ) — December 31, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 208 $ 208 $ 208 $ — $ — Investment securities available-for-sale 1,294 1,294 — 1,294 — Investment securities held-to-maturity 1,268 1,262 — 1,262 — Loans held-for-sale 2,576 2,578 — 2,578 — Loans with government guarantees 485 469 — 469 — Loans held-for-investment, net 6,165 6,121 — 6 6,115 Repossessed assets 17 17 — — 17 Federal Home Loan Bank stock 170 170 — 170 — Mortgage servicing rights 296 296 — — 296 Bank owned life insurance 178 178 — 178 — Other assets, foreclosure claims 210 210 — 210 — Derivative financial instruments, assets 58 58 — 32 26 Liabilities Retail deposits Demand deposits and savings accounts $ (5,008 ) $ (4,744 ) $ — $ (4,744 ) $ — Certificates of deposit (826 ) (833 ) — (833 ) — Government deposits (1,062 ) (1,045 ) — (1,045 ) — Company controlled deposits (1,039 ) (947 ) — (947 ) — Federal Home Loan Bank advances (3,541 ) (3,543 ) — (3,543 ) — Long-term debt (247 ) (89 ) — (89 ) — Warrant liabilities (8 ) (8 ) — (8 ) — DOJ litigation settlement (84 ) (84 ) — — (84 ) Derivative financial instruments, liabilities (18 ) (18 ) (1 ) (17 ) — The methods and assumptions used by us 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 remaining maturities are used to estimate the fair value of the existing debt. Long-term debt. The fair value of the long-term debt is estimated based on a discounted cash flow model that incorporates current borrowing rates for similar types of borrowing arrangements. Fair Value Option We elected the fair value option for certain items as discussed throughout the Notes to the Consolidated Financial Statements to mitigate a divergence between accounting losses and economic exposure. Interest income on loans held-for-sale is accrued on the principal outstanding primarily using the "simple-interest" method. The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Assets (Dollars in millions) Loans held-for-sale Net gain on loan sales $ 145 $ 37 $ 289 $ 142 Loans held-for-investment Interest income on loans $ 2 $ 4 $ 2 $ 7 Other noninterest income — (25 ) — (34 ) Liabilities Long-term debt Other noninterest income $ — $ (14 ) $ — $ (25 ) Litigation settlement Other noninterest expense $ — $ 3 $ — $ 2 The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding as of June 30, 2016 and December 31, 2015 for assets and liabilities for which the fair value option has been elected: June 30, 2016 December 31, 2015 (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-sale $ 1 $ 1 $ — $ 1 $ — $ (1 ) Loans held-for-investment 22 10 (12 ) 21 10 (11 ) Total nonaccrual loans $ 23 $ 11 $ (12 ) $ 22 $ 10 $ (12 ) Other performing loans Loans held-for-sale $ 2,921 $ 3,070 $ 149 $ 2,451 $ 2,541 $ 90 Loans held-for-investment 90 78 (12 ) 112 101 (11 ) Total other performing loans $ 3,011 $ 3,148 $ 137 $ 2,563 $ 2,642 $ 79 Total loans Loans held-for-sale $ 2,922 $ 3,071 $ 149 $ 2,452 $ 2,541 $ 89 Loans held-for-investment 112 88 (24 ) 133 111 (22 ) Total loans $ 3,034 $ 3,159 $ 125 $ 2,585 $ 2,652 $ 67 Liabilities Litigation settlement (1) $ (118 ) $ (84 ) $ 34 $ (118 ) $ (84 ) $ 34 (1) We are obligated to pay $118 million in installment payments upon meeting certain performance conditions. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our 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. Effective January 1, 2016, we reorganized our reportable segments to align with our new management reporting structure and to align with our long-term strategy. All prior periods were reclassified to be consistent with the current presentation. Prior to the reorganization, representation and warranty reserves were reported in the Mortgage Servicing segment and the MSR asset and associated costs were reported in the Other segment. As a result of this change, representation and warranty reserves, as well as the MSR asset and associated costs are now reported in the Mortgage Originations segment. 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 Mortgage Originations 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, 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, and interest rate risk management. 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 (benefit) 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 June 30, 2016 Mortgage Originations Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 20 $ 7 $ 49 $ 1 $ 77 Net gain on loan sales 87 — 3 — 90 Representation and warranty benefit 4 — — — 4 Other noninterest income 9 13 6 6 34 Total net interest income and noninterest income 120 20 58 7 205 (Provision) benefit for loan losses — — 3 — 3 Asset resolution — (1 ) — — (1 ) Depreciation and amortization expense (1 ) (1 ) (2 ) (4 ) (8 ) Other noninterest expense (61 ) (21 ) (45 ) (3 ) (130 ) Total noninterest expense (62 ) (23 ) (47 ) (7 ) (139 ) Income (loss) before income taxes 58 (3 ) 14 — 69 Provision for income taxes — — — 22 22 Net income (loss) $ 58 $ (3 ) $ 14 $ (22 ) $ 47 Intersegment revenue $ 1 $ 6 $ — $ (7 ) $ — Average balances Loans held-for-sale $ 2,828 $ — $ 56 $ — $ 2,884 Loans with government guarantees — 444 — — 444 Loans held-for-investment 3 — 5,566 — 5,569 Total assets 3,471 678 5,653 3,636 13,438 Deposits — 1,558 7,073 — 8,631 Three Months Ended June 30, 2015 Mortgage Originations Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 19 $ 4 $ 42 $ 8 $ 73 Net gain on loan sales 87 — (4 ) — 83 Representation and warranty benefit 5 — — — 5 Other noninterest income 24 14 1 (1 ) 38 Total net interest income and noninterest income 135 18 39 7 199 (Provision) benefit for loan losses — — 13 — 13 Asset resolution — (5 ) — — (5 ) Depreciation and amortization expense — — (2 ) (3 ) (5 ) Other noninterest expense (61 ) (28 ) (37 ) (2 ) (128 ) Total noninterest expense (61 ) (33 ) (39 ) (5 ) (138 ) Income (loss) before income taxes 74 (15 ) 13 2 74 Provision for income taxes — — — 28 28 Net income (loss) $ 74 $ (15 ) $ 13 $ (26 ) $ 46 Intersegment revenue $ 12 $ (2 ) $ (5 ) $ (5 ) $ — Average balances Loans held-for-sale $ 2,173 $ — $ 45 $ — $ 2,218 Loans with government guarantees — 630 — — 630 Loans held-for-investment 2 — 4,831 105 4,938 Total assets 2,628 986 4,803 3,394 11,811 Deposits — 1,128 6,608 — 7,736 Six Months Ended June 30, 2016 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 40 $ 13 $ 96 $ 7 $ 156 Net gain (loss) on loan sales 156 — 9 — 165 Representation and warranty benefit 6 — — — 6 Other noninterest income (loss) 13 26 13 10 62 Total net interest income and noninterest income 215 39 118 17 389 (Provision) benefit for loan losses — — 16 — 16 Asset resolution — (4 ) — — (4 ) Depreciation and amortization expense (2 ) (2 ) (4 ) (7 ) (15 ) Other noninterest expense (118 ) (45 ) (88 ) (6 ) (257 ) Total noninterest expense (120 ) (51 ) (92 ) (13 ) (276 ) Income (loss) before income taxes 95 (12 ) 42 4 129 Provision for income taxes — — — 43 43 Net income (loss) $ 95 $ (12 ) $ 42 $ (39 ) $ 86 Intersegment revenue $ 2 $ 11 $ (1 ) $ (12 ) $ — Average balances Loans held-for-sale $ 2,780 $ — $ 117 $ — $ 2,897 Loans with government guarantees — 460 — — 460 Loans held-for-investment 7 — 5,611 — 5,618 Total assets 3,409 703 5,745 3,634 13,491 Deposits — 1,357 6,984 — 8,341 Six Months Ended June 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 34 $ 7 $ 81 $ 16 $ 138 Net gain (loss) on loan sales 183 — (9 ) — 174 Representation and warranty benefit 7 — — — 7 Other noninterest income 34 27 8 (5 ) 64 Total net interest income and noninterest income 258 34 80 11 383 (Provision) benefit for loan losses — — 17 — 17 Asset resolution — (12 ) (1 ) — (13 ) Depreciation and amortization expense (1 ) (1 ) (3 ) (6 ) (11 ) Other noninterest expense (118 ) (53 ) (77 ) (4 ) (252 ) Total noninterest expense (119 ) (66 ) (81 ) (10 ) (276 ) Income (loss) before income taxes 139 (32 ) 16 1 124 Benefit for income taxes — — — 46 46 Net income (loss) $ 139 $ (32 ) $ 16 $ (45 ) $ 78 Intersegment revenue $ 19 $ 1 $ (10 ) $ (10 ) $ — Average balances Loans held-for-sale $ 1,988 $ — $ 43 $ — $ 2,031 Loans with government guarantees — 747 — — 747 Loans held-for-investment 2 — 4,500 115 4,617 Total assets 2,477 1,077 4,457 3,325 11,336 Deposits — 1,038 6,515 — 7,553 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU alters the current method for recognizing credit losses within the reserve account. Currently, an institution uses the incurred loss method, the new guidance will require the allowance to be recorded on day one for the contractual term of the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. Management is currently evaluating this guidance and the impact it will have on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective retrospectively for fiscal years beginning after December 15, 2016 and early adoption is permitted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments. The amendments in ASU 2016-06 clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. ASU 2016-06 is effective retrospectively for fiscal years beginning after December 15, 2016 and early adoption is permitted. This guidance is not expected to have a material impact upon adoption on our Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Section A - Leases: Amendments to the FASB Accounting Standards Codification, Section B - Conforming Amendments Related to Leases: Amendment to the FASB Accounting Standards Codification, Section C - Background Information and Basis For Conclusions. Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting. ASU 2016-02 is effective retrospectively for fiscal years beginning after December 15, 2019 and early adoption is permitted. The guidance in ASU 2016-02 supersedes Topic 840, Leases. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective retrospectively for fiscal years beginning after December 15, 2017 and early adoption is permitted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements, if any. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 a year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption. In April 2016, the FASB clarified the following two aspects: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU 2016-12 Revenue From Contracts With Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to provide a limited number of changes to its revenue recognition standard. The amendments clarify the assessment of the likelihood that revenue will be collected from a contract, the guidance for presenting sales taxes and similar taxes, and the timing for measuring customer payments that are not in cash. The amendment also says a contract should be considered complete if all, or substantially all, of its revenue has been collected prior to making the transition to the new standard. In addition, the update clarifies the disclosure requirements for businesses and other organizations that make the transition to the new standard by adjusting amounts from prior reporting periods. The effects have to be disclosed for prior periods that were adjusted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements, changes to disclosures in the Notes thereto will be required. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 11, 2016, we completed an offering of $250 million of 6.125 percent senior notes due 2021 (the "Senior Notes"). This transaction will increase our long term debt reported on the consolidated statement of financial condition by approximately $245 million , net of issuance costs. We utilized these proceeds and other available cash to execute the transactions described below. On July 14, 2016, we made a $34 million payment on our junior subordination notes (trust preferred securities) to bring current our previously deferred interest as of that date. This transaction will reduce our other liabilities reported on the consolidated statement of financial condition by $34 million . On July 29, 2016, we completed the previously announced $267 million redemption of our TARP Preferred. This transaction will reduce stockholders equity by approximately $371 million with a $267 million reduction in Preferred Stock and a $104 million reduction related to the payment of deferred dividends. The transactions above have a significant impact on our capital ratios, the impact of which has been further discussed and presented in the capital section of Management's Discussion and Analysis within this Form 10-Q. |
Recently Issued Accounting Pr30
Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Credit Quality | Credit Quality We utilize 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. Descriptions of our 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 we will sustain some loss if the deficiencies are not corrected. For HELOC loans and other consumer loans, we evaluate credit quality based on the aging and status of payment activity and any other known credit characteristics that call into question full repayment of the asset. Nonperforming loans are classified as either substandard, doubtful or loss. 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. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as bankable asset is not warranted. This classification does not mean that an asset has absolutely no recovery or salvage value, but, rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. |
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 non-performance risk inherent in all its derivative contracts is minimal based on credit standards and the collateral provisions of the derivative agreements. A majority of the Company’s derivatives are centrally cleared through a Central Counterparty Clearing House or consist of residential mortgage interest rate lock commitments further limiting non-performance risk. 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: We have designated certain interest rate swaps as cash flow hedges of certain interest rate payments of our variable-rate Federal Home Loan Bank (FHLB) advances. We have also designated certain interest rate swaps as fair value hedges of certain FHLB advances. 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 recognized in earnings. At June 30, 2016 , we had $40 million (net-of-tax) recorded of unrealized losses on derivatives classified as cash flow hedges recorded in accumulated other comprehensive income (loss), compared to $3 million at December 31, 2015 . The estimated amount to be reclassified from other comprehensive income into earnings during the next 12 months represents $8 million of losses (net-of-tax). Changes in the fair value of the derivatives designated as a fair value hedge are recorded in interest expense, in the same line as changes in the fair value of the FHLB debt, the hedged item, in the current period to the extent it is effective. Derivatives that are designated in hedging relationships are assessed for effectiveness using regression analysis at inception and throughout the hedge period. All hedge relationships were highly effective as of June 30, 2016 . Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item. |
Fair Value Measurements | Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management's judgment, assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Refer to Note 24 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2015 for a description of our valuation methodologies and information about the fair value hierarchy. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU alters the current method for recognizing credit losses within the reserve account. Currently, an institution uses the incurred loss method, the new guidance will require the allowance to be recorded on day one for the contractual term of the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. Management is currently evaluating this guidance and the impact it will have on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective retrospectively for fiscal years beginning after December 15, 2016 and early adoption is permitted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments. The amendments in ASU 2016-06 clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. ASU 2016-06 is effective retrospectively for fiscal years beginning after December 15, 2016 and early adoption is permitted. This guidance is not expected to have a material impact upon adoption on our Consolidated Financial Statements, but disclosures to the Notes thereto will be updated per the requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Section A - Leases: Amendments to the FASB Accounting Standards Codification, Section B - Conforming Amendments Related to Leases: Amendment to the FASB Accounting Standards Codification, Section C - Background Information and Basis For Conclusions. Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting. ASU 2016-02 is effective retrospectively for fiscal years beginning after December 15, 2019 and early adoption is permitted. The guidance in ASU 2016-02 supersedes Topic 840, Leases. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective retrospectively for fiscal years beginning after December 15, 2017 and early adoption is permitted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements, if any. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 a year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption. In April 2016, the FASB clarified the following two aspects: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU 2016-12 Revenue From Contracts With Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to provide a limited number of changes to its revenue recognition standard. The amendments clarify the assessment of the likelihood that revenue will be collected from a contract, the guidance for presenting sales taxes and similar taxes, and the timing for measuring customer payments that are not in cash. The amendment also says a contract should be considered complete if all, or substantially all, of its revenue has been collected prior to making the transition to the new standard. In addition, the update clarifies the disclosure requirements for businesses and other organizations that make the transition to the new standard by adjusting amounts from prior reporting periods. The effects have to be disclosed for prior periods that were adjusted. Management is currently evaluating this guidance and does not expect this guidance to have a material impact on our Consolidated Financial Statements, changes to disclosures in the Notes thereto will be required. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Trading and Available-for-sale Securities | As of June 30, 2016 and December 31, 2015 , investment securities were comprised of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in millions) June 30, 2016 Available-for-sale securities Agency - Commercial $ 626 $ 14 $ — $ 640 Agency - Residential 461 12 — 473 Municipal obligations 31 1 — 32 Total available-for-sale securities (1) $ 1,118 $ 27 $ — $ 1,145 Held-to-maturity securities Agency - Commercial $ 635 $ 12 $ — $ 647 Agency - Residential 576 14 — 590 Total held-to-maturity securities (1) $ 1,211 $ 26 $ — $ 1,237 December 31, 2015 Available-for-sale securities Agency - Commercial $ 766 $ 3 $ (3 ) $ 766 Agency - Residential 514 2 (2 ) 514 Municipal obligations 14 — — 14 Total available-for-sale securities (1) $ 1,294 $ 5 $ (5 ) $ 1,294 Held-to-maturity securities Agency - Commercial $ 634 $ — $ (2 ) $ 632 Agency - Residential 634 — (4 ) 630 Total held-to-maturity securities (1) $ 1,268 $ — $ (6 ) $ 1,262 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at June 30, 2016 or December 31, 2015 . |
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) June 30, 2016 Available-for-sale securities Agency - Commercial $ 7 1 $ — $ 13 2 $ — Held-to-maturity securities Agency - Commercial $ — — $ — $ 57 4 $ — December 31, 2015 Available-for-sale securities Agency - Commercial $ — — $ — $ 482 27 $ (3 ) Agency - Residential $ 8 2 $ — $ 224 15 $ (2 ) Held-to-maturity securities Agency - Commercial $ — — $ — $ 471 27 $ (2 ) Agency - Residential $ — — $ — $ 547 50 $ (4 ) |
Schedule of Available-for-sale Securities, by Contractual Maturity Date | The amortized cost and estimated fair value of securities at June 30, 2016 , are presented below by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-maturity Amortized Cost Fair Value Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield June 30, 2016 (Dollars in millions) (Dollars in millions) Due after one year through five years $ 18 $ 18 3.97 % $ — $ — — % Due after five years through 10 years 7 7 2.66 % 61 64 2.50 % Due after 10 years 1,093 1,120 2.59 % 1,150 1,173 2.40 % Total $ 1,118 $ 1,145 $ 1,211 $ 1,237 |
Loans Held-for-Investment (Tabl
Loans Held-for-Investment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Loans Held-for-investment | Loans held-for-investment are summarized as follows: June 30, December 31, (Dollars in millions) Consumer loans Residential first mortgage $ 2,075 $ 3,100 Second mortgage 127 135 HELOC 346 384 Other 32 31 Total consumer loans 2,580 3,650 Commercial loans Commercial real estate (1) 976 814 Commercial and industrial 615 552 Warehouse lending 1,651 1,336 Total commercial loans 3,242 2,702 Total loans held-for-investment $ 5,822 $ 6,352 (1) Includes $221 million and $188 million , respectively, of commercial owner occupied real estate loans at June 30, 2016 and December 31, 2015 . |
Allowance for Loan Losses | The allowance for loan losses by class of loan are summarized in the following table: Residential First Mortgage (1) Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) Three Months Ended June 30, 2016 Beginning balance allowance for loan losses $ 95 $ 10 $ 20 $ 2 $ 19 $ 10 $ 6 $ 162 Charge-offs (2) (8 ) (1 ) — (1 ) — — — (10 ) Recoveries 1 1 (1 ) — — — — 1 (Benefit) provision (7 ) — 1 — — 1 2 (3 ) Ending balance allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 Three Months Ended June 30, 2015 Beginning balance allowance for loan losses $ 188 $ 12 $ 21 $ — $ 16 $ 12 $ 4 $ 253 Charge-offs (2) (19 ) (1 ) — (1 ) — — — (21 ) Recoveries 1 1 — 1 — — — 3 (Benefit) provision (19 ) 2 4 1 (1 ) — — (13 ) Ending balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 Six Months Ended June 30, 2016 Beginning balance allowance for loan losses $ 116 $ 11 $ 21 $ 2 $ 18 $ 13 $ 6 $ 187 Charge-offs (2) (19 ) (2 ) (1 ) (2 ) — — — (24 ) Recoveries 1 1 — 1 — — — 3 Provision (benefit) (17 ) — — — 1 (2 ) 2 (16 ) Ending balance allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 Six Months Ended June 30, 2015 Beginning balance allowance for loan losses $ 234 $ 12 $ 19 $ 1 $ 17 $ 11 $ 3 $ 297 Charge-offs (2) (60 ) (2 ) (1 ) (1 ) — — — (64 ) Recoveries 2 1 — 1 2 — — 6 Provision (benefit) (25 ) 3 7 — (4 ) 1 1 (17 ) Ending balance allowance for loan losses $ 151 $ 14 $ 25 $ 1 $ 15 $ 12 $ 4 $ 222 (1) Includes allowance and charge-offs related to loans with government guarantees. (2) Includes charge-offs of $2 million and $15 million related to the sale or transfer of loans during the three months ended June 30, 2016 and June 30, 2015 , respectively, and $8 million and $51 million related to the sale of loans during the six months ended June 30, 2016 and June 30, 2015 , respectively. Also includes charge-offs related to loans with government guarantees of $4 million and $7 million during the three and six months ended June 30, 2016 , respectively. The loans held-for-investment and allowance for loan losses by class of loan is summarized in the following table: Residential First Mortgage (1) Second Mortgage HELOC Other Consumer Commercial Real Estate Commercial and Industrial Warehouse Lending Total (Dollars in millions) June 30, 2016 Loans held-for-investment Individually evaluated $ 43 $ 27 $ 6 $ — $ — $ 1 $ — $ 77 Collectively evaluated (2) 2,027 61 296 32 976 614 1,651 5,657 Total loans $ 2,070 $ 88 $ 302 $ 32 $ 976 $ 615 $ 1,651 $ 5,734 Allowance for loan losses Individually evaluated $ 7 $ 6 $ 3 $ — $ — $ — $ — $ 16 Collectively evaluated (2) 74 4 17 1 19 11 8 134 Total allowance for loan losses $ 81 $ 10 $ 20 $ 1 $ 19 $ 11 $ 8 $ 150 December 31, 2015 Loans held-for-investment Individually evaluated $ 87 $ 28 $ 3 $ — $ — $ 2 $ — $ 120 Collectively evaluated (2) 3,007 65 318 31 814 550 1,336 6,121 Total loans $ 3,094 $ 93 $ 321 $ 31 $ 814 $ 552 $ 1,336 $ 6,241 Allowance for loan losses Individually evaluated $ 12 $ 6 $ 1 $ 1 $ — $ — $ — $ 20 Collectively evaluated (2) 104 5 20 1 18 13 6 167 Total allowance for loan losses $ 116 $ 11 $ 21 $ 2 $ 18 $ 13 $ 6 $ 187 (1) Includes allowance related to loans with government guarantees. (2) 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 June 30, 2016 and December 31, 2015 , 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) June 30, 2016 Consumer loans Residential first mortgage $ 3 $ 1 $ 32 $ 36 $ 2,039 $ 2,075 Second mortgage — — 3 3 124 127 HELOC 2 1 9 12 334 346 Other — — — — 32 32 Total consumer loans 5 2 44 51 2,529 2,580 Commercial loans Commercial real estate — — — — 976 976 Commercial and industrial — — — — 615 615 Warehouse lending — — — — 1,651 1,651 Total commercial loans — — — — 3,242 3,242 Total loans (2) $ 5 $ 2 $ 44 $ 51 $ 5,771 $ 5,822 December 31, 2015 Consumer loans Residential first mortgage $ 7 $ 3 $ 53 $ 63 $ 3,037 $ 3,100 Second mortgage — — 2 2 133 135 HELOC 2 1 9 12 372 384 Other 1 — — 1 30 31 Total consumer loans 10 4 64 78 3,572 3,650 Commercial loans Commercial real estate — — — — 814 814 Commercial and industrial — — 2 2 550 552 Warehouse lending — — — — 1,336 1,336 Total commercial loans — — 2 2 2,700 2,702 Total loans (2) $ 10 $ 4 $ 66 $ 80 $ 6,272 $ 6,352 (1) Includes loans that are less than 90 days past due, which have been placed on nonaccrual. (2) Includes $10 million of loans 90 days or greater past due, accounted for under the fair value option at both June 30, 2016 and December 31, 2015 . |
Troubled Debt Restructurings | The following table provides a summary of newly modified TDRs during the three and six months ended June 30, 2016 and 2015 . New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) Increase in Allowance at Modification Three Months Ended June 30, 2016 (Dollars in millions) Residential first mortgages 3 $ 1 $ 1 $ — Second mortgages 5 — — — HELOC (2)(3) 20 2 2 — Total TDR loans 28 $ 3 $ 3 $ — Three Months Ended June 30, 2015 Residential first mortgages 77 $ 23 $ 22 $ (2 ) Second mortgages 35 1 1 — HELOC (2) 122 8 7 — Other consumer 3 — — — Total TDR loans 237 $ 32 $ 30 $ (2 ) Six Months Ended June 30, 2016 Residential first mortgages 16 $ 3 $ 4 $ — Second mortgages 26 1 1 — HELOC (2)(3) 85 6 5 — Commercial and industrial 1 2 1 — Total TDR loans 128 $ 12 $ 11 $ — Six Months Ended June 30, 2015 Residential first mortgages 191 $ 53 $ 52 $ (1 ) Second mortgages 68 3 2 — HELOC (2)(3) 158 8 7 — Other consumer 3 — — — Total TDR loans 420 $ 64 $ 61 $ (1 ) (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) HELOC post-modification unpaid principal balance reflects write downs. (3) Includes loans carried at the fair value option. The following table provides a summary of TDR loans that were modified within the previous 12 months, which subsequently defaulted during the three and six months ended June 30, 2016 and 2015 . All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due. TDRs that were modified in the previous 12 months, which have subsequently defaulted Number of Accounts Unpaid Principal Balance Increase in Allowance at Subsequent Default Three Months Ended June 30, 2015 (Dollars in millions) Second mortgages 1 $ — $ — Total TDR loans 1 $ — $ — Six Months Ended June 30, 2016 Residential first mortgages 1 $ — $ — HELOC (1) 4 — — Total TDR loans 5 $ — $ — Six Months Ended June 30, 2015 Second mortgages 1 $ — $ — Total TDR loans 1 $ — $ — (1) 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 June 30, 2016 (Dollars in millions) Consumer loans Residential first mortgage $ 21 $ 13 $ 34 Second mortgage 30 1 31 HELOC 21 7 28 Total consumer loans 72 21 93 Commercial loans Commercial and industrial 1 — 1 Total commercial loans 1 — 1 Total TDRs (1)(2) $ 73 $ 21 $ 94 December 31, 2015 Consumer loans Residential first mortgage $ 49 $ 27 $ 76 Second mortgage 32 1 33 HELOC 20 7 27 Total TDRs (1)(2) $ 101 $ 35 $ 136 (1) The allowance for loan losses on consumer TDR loans totaled $12 million and $15 million at June 30, 2016 and December 31, 2015 , respectively. (2) Includes $30 million and $32 million of TDR loans accounted for under the fair value option at June 30, 2016 and December 31, 2015 , respectively. |
Impaired Loans | The following table presents individually evaluated impaired loans and the associated allowance: June 30, 2016 December 31, 2015 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 $ 2 $ 2 $ — $ 20 $ 20 $ — Commercial loans Commercial and industrial 1 1 — 5 2 — $ 3 $ 3 $ — $ 25 $ 22 $ — With an allowance recorded Consumer loans Residential first mortgage $ 41 $ 41 $ 6 $ 65 $ 67 $ 12 Second mortgage 26 27 7 28 28 6 HELOC 6 6 3 3 3 1 Other consumer — — — — — 1 $ 73 $ 74 $ 16 $ 96 $ 98 $ 20 Total Consumer loans Residential first mortgage $ 43 $ 43 $ 6 $ 85 $ 87 $ 12 Second mortgage 26 27 7 28 28 6 HELOC 6 6 3 3 3 1 Other consumer — — — — — 1 Commercial loans Commercial and industrial 1 1 — 5 2 — Total impaired loans $ 76 $ 77 $ 16 $ 121 $ 120 $ 20 The following table presents average impaired loans and the interest income recognized: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 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 $ 47 $ — $ 116 $ 1 $ 60 $ 1 $ 210 $ 2 Second mortgage 27 1 31 — 27 1 31 1 HELOC 5 — 2 — 5 — 2 — Commercial loans Commercial and industrial 1 — — — 3 — — — Total impaired loans $ 80 $ 1 $ 149 $ 1 $ 95 $ 2 $ 243 $ 3 |
Loan Credit Quality Indicators | Commercial Credit Loans Commercial Real Estate Commercial and Industrial Warehouse Total Commercial June 30, 2016 (Dollars in millions) Grade Pass $ 934 $ 562 $ 1,505 $ 3,001 Watch 38 20 146 204 Special mention 3 32 — 35 Substandard 1 1 — 2 Total loans $ 976 $ 615 $ 1,651 $ 3,242 December 31, 2015 Pass $ 766 $ 492 $ 1,181 $ 2,439 Watch 42 30 155 227 Special mention 2 21 — 23 Substandard 4 9 — 13 Total loans $ 814 $ 552 $ 1,336 $ 2,702 Consumer Credit Loans Residential First Mortgage Second Mortgage HELOC Other Consumer Total June 30, 2016 (Dollars in millions) Grade Pass $ 2,019 $ 93 $ 315 $ 32 $ 2,459 Watch 21 31 22 — 74 Substandard 35 3 9 — 47 Total loans $ 2,075 $ 127 $ 346 $ 32 $ 2,580 December 31, 2015 Pass $ 2,993 $ 101 $ 353 $ 31 $ 3,478 Watch 49 32 22 — 103 Substandard 58 2 9 — 69 Total loans $ 3,100 $ 135 $ 384 $ 31 $ 3,650 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Balance at beginning of period $ 281 $ 279 $ 296 $ 258 Additions from loans sold with servicing retained 65 77 122 146 Reductions from sales — (49 ) (24 ) (71 ) Changes in fair value due to (1) Decrease in MSR due to pay-offs, pay-downs and run-off (15 ) (11 ) (26 ) (26 ) Changes in estimates of fair value (2) (30 ) 21 (67 ) 10 Fair value of MSRs at end of period $ 301 $ 317 $ 301 $ 317 (1) Changes in fair value are included within net (loss) return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes in interest rates |
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: June 30, 2016 December 31, 2015 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 8.37 % $ 293 $ 285 8.24 % $ 287 $ 279 Constant prepayment rate 16.38 % 287 274 12.63 % 285 275 Weighted average cost to service per loan $ 70.99 297 293 $ 71.86 292 288 |
Schedule of Servicing Assets at Fair Value, Servicing Fees | The following table summarizes the servicing fees: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Income on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 21 $ 17 $ 38 $ 34 Changes in fair value (2) (45 ) 12 (93 ) (14 ) Gain on MSR derivatives (3) 19 (14 ) 45 (5 ) Net transaction costs 1 (6 ) — (8 ) Total (loss) return, included in net return on mortgage servicing rights $ (4 ) $ 9 $ (10 ) $ 7 (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 three and six months ended June 30, 2015. (3) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The agency servicing fees, ancillary income and late fees increased during the six month ended June 30, 2016, as compared to the six month ended June 30, 2015, primarily driven by the higher amount of loans serviced and fewer MSR sales during 2016. The following table summarizes income and fees associated on our mortgage loans subserviced: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Income on mortgage loans subserviced Subservicing fees, ancillary income and late fees (1) $ 7 $ 9 $ 14 $ 16 Other servicing charges (3 ) (2 ) (4 ) (5 ) Total income, included in loan administration $ 4 $ 7 $ 10 $ 11 (1) Servicing fees are recorded on the accrual basis. Ancillary income and late fees are recorded on cash basis. |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Changes in Fair Value of Derivative Instruments | The net gain (loss) recognized in income on derivative instruments, net of the impact of offsetting positions, were as follows: Three Months Ended June 30, Six Months Ended June 30, Location of Gain/(Loss) 2016 2015 2016 2015 (Dollars in millions) Derivatives not designated as hedging instruments: U.S. Treasury, swap and euro dollar futures Net (loss) return on mortgage servicing rights $ 1 $ (3 ) $ 4 $ 3 Interest rate swaps and swaptions Net (loss) return on mortgage servicing rights 13 (8 ) 28 (8 ) Mortgage backed securities forwards Net (loss) return on mortgage servicing rights 5 (3 ) 13 — Rate lock commitments and forward agency and loan sales Net gain on loan sales (6 ) 10 (1 ) 20 Rate lock commitments Other noninterest income — (1 ) 1 — Interest rate swaps Other noninterest income (1 ) — 1 — Total derivative (loss) gain $ 12 $ (5 ) $ 46 $ 15 |
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) June 30, 2016 Derivatives designated as hedging instruments: Assets Interest rate swaps on FHLB advances $ 250 $ 2 2020 Liabilities (1) Interest rate swaps on FHLB advances $ 825 $ 56 2023-2025 Derivatives not designated as hedging instruments: Assets (2) U.S. Treasury, swap and euro dollar futures $ 749 $ 3 2016-2020 Mortgage backed securities forwards 468 4 2016 Rate lock commitments 6,305 83 2016 Interest rate swaps and swaptions 2,337 88 2016-2046 Total derivative assets $ 9,859 $ 178 Liabilities (1) U.S. Treasury, swap and euro dollar futures $ 7,903 $ 3 2016-2019 Mortgage backed securities forwards 6,054 58 2016 Rate lock commitments 46 — 2016 Interest rate swaps 510 18 2016-2026 Total derivative liabilities $ 14,513 $ 79 December 31, 2015 Derivatives designated as hedging instruments: Liabilities (1) Interest rate swaps on FHLB advances $ 825 $ 4 2023-2025 Derivatives not designated as hedging instruments: Assets (2) U.S. Treasury, swap and euro dollar futures $ 1,892 $ — 2016-2019 Mortgage backed securities forwards 1,931 7 2016 Rate lock commitments 3,593 26 2016 Interest rate swaps and swaptions 1,554 25 2016-2035 Total derivative assets $ 8,970 $ 58 Liabilities (1) U.S. Treasury, swap and euro dollar futures $ 768 $ 1 2016-2019 Mortgage backed securities forwards 2,655 6 2016 Rate lock commitments 168 — 2016 Interest rate swaps 422 7 2016-2025 Total derivative liabilities $ 4,013 $ 14 (1) Derivatives liabilities are included in other liabilities on the Consolidated Statements of Financial Condition. (2) Derivative assets are included in other assets on the Consolidated Statements of Financial Condition. |
Offsetting of Derivatives | The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Not Offset in the Statement of Financial Position Gross Amount Gross Amounts Netted in the Statement of Financial Position Net Amount Presented in the Statement of Financial Position Financial Instruments Cash Collateral (Dollars in millions) June 30, 2016 Derivatives designated as hedging instruments: Assets Interest rate swaps on FHLB advances (1) $ 2 $ 2 $ — $ — $ — Liabilities Interest rate swaps on FHLB advances (1) $ 56 $ 2 $ 54 $ — $ 35 Derivatives not designated as hedging instruments: Assets U.S. Treasury, swap and euro dollar futures $ 3 $ 3 $ — $ — $ — Mortgage backed securities forwards 4 — 4 — — Interest rate swaps and swaptions (1) 88 — 88 — 19 Total derivative assets $ 95 $ 3 $ 92 $ — $ 19 Liabilities U.S. Treasury, swap and euro dollar futures $ 3 $ 3 $ — $ — $ 5 Mortgage backed securities forwards 58 — 58 — 62 Interest rate swaps and swaptions (1) 18 — 18 — 14 Total derivative liabilities $ 79 $ 3 $ 76 $ — $ 81 December 31, 2015 Derivatives designated as hedging instruments: Liabilities Interest rate swaps on FHLB advances $ 4 $ — $ 4 $ — $ 19 Derivatives not designated as hedging instruments: Assets Mortgage backed securities forwards $ 7 $ — $ 7 $ — $ 4 Interest rate swaps and swaptions (1) 25 — 25 — 10 Total derivative assets $ 32 $ — $ 32 $ — $ 14 Liabilities U.S. Treasury, swap and euro dollar futures $ 1 $ — $ 1 $ — $ 2 Mortgage backed securities forwards 6 — 6 — 8 Interest rate swaps and swaptions (1) 7 — 7 — 12 Total derivative liabilities $ 14 $ — $ 14 $ — $ 22 (1) Additional funds are pledged to a Central Counterparty Clearing House in the amount of $32 million as of June 30, 2016 and $7 million as of December 31, 2015 to maintain initial margin requirements. This collateral is in addition to the amount required to be maintained for potential market changes shown in the cash collateral column above. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of FHLB Advances, by Interest Rate Type | The following is a breakdown of the advances outstanding: June 30, 2016 December 31, 2015 Amount Rate Amount Rate (Dollars in millions) Short-term adjustable rate $ 1 0.70 % $ — — % Short-term fixed rate term advances 1,068 0.40 % 2,116 0.32 % Long-term LIBOR adjustable advances 1,025 0.80 % 825 0.70 % Long-term fixed rate advances (1) 552 1.44 % 600 1.37 % Total $ 2,646 0.77 % $ 3,541 0.59 % (1) Includes the current portion of fixed rate advances of $125 million and $175 million at June 30, 2016 and December 31, 2015 , respectively. |
Schedule of FHLB Advances, Disclosures | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Maximum outstanding at any month end $ 2,646 $ 2,198 $ 3,557 $ 2,198 Average outstanding balance 2,460 1,828 2,841 1,497 Average remaining borrowing capacity 983 1,503 843 1,697 Weighted average interest rate 1.42 % 0.90 % 1.25 % 0.97 % |
Schedule of FHLB, Advances, Maturity Summary | The following outlines our Federal Home Loan Bank advance final maturity dates as of June 30, 2016 : June 30, 2016 (Dollars in millions) 2016 $ 1,194 2017 50 2018 125 2019 — Thereafter 1,277 Total $ 2,646 |
Schedule of Long-Term Debt Instruments | The following table presents the carrying value on each of our junior subordinated notes, along with the related interest rates of the long-term debt as of the dates indicated: June 30, 2016 December 31, 2015 (Dollars in millions) Trust Preferred Securities Floating Three Month LIBOR Plus 3.25%, matures 2032 $ 26 3.89 % $ 26 3.85 % Plus 3.25%, matures 2033 26 3.88 % 26 3.57 % Plus 3.25%, matures 2033 26 3.88 % 26 3.85 % Plus 2.00%, matures 2035 26 2.63 % 26 2.32 % Plus 2.00%, matures 2035 26 2.63 % 26 2.32 % Plus 1.75%, matures 2035 51 2.40 % 51 2.26 % Plus 1.50%, matures 2035 25 2.13 % 25 1.82 % Plus 1.45%, matures 2037 25 2.10 % 25 1.96 % Plus 2.50%, matures 2037 16 3.15 % 16 3.01 % Total long-term debt $ 247 $ 247 |
Representation and Warranty R36
Representation and Warranty Reserve (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Balance, beginning of period $ 40 $ 53 $ 40 $ 53 Provision (release) Charged to gain on sale for current loan sales 1 2 3 4 Charged to representation and warranty benefit (4 ) (5 ) (6 ) (7 ) Total (3 ) (3 ) (3 ) (3 ) Charge-offs, net (1 ) (2 ) (1 ) (2 ) Balance, end of period $ 36 $ 48 $ 36 $ 48 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table sets forth the components in accumulated other comprehensive income (loss) for each type of 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 Accumulated Other Comprehensive Income (Loss) Net of Tax (Dollars in millions) Accumulated other comprehensive income (loss) ("AOCI") Balance at December 31, 2015, net of tax $ 5 $ — $ (3 ) $ 2 Net unrealized loss, net of tax — 16 (44 ) (28 ) Reclassifications out of AOCI (1 ) 1 7 7 Balance at June 30, 2016, net of tax $ 4 $ 17 $ (40 ) $ (19 ) Balance at December 31, 2014, net of tax $ — $ 8 $ — $ 8 Balance at June 30, 2015, net of tax $ — $ 8 $ — $ 8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 is summarized as follows: Rate Earliest Redemption Date Shares Outstanding Preferred Shares (Dollars in millions) Series C Preferred Stock 9.0 % 1/31/2012 266,657 $ 267 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share of common stock: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions, except share data) Net income $ 47 $ 46 $ 86 $ 78 Deferred cumulative preferred stock dividends (8 ) (7 ) (16 ) (15 ) Net income applicable to common stock $ 39 $ 39 $ 70 $ 63 Weighted average shares Weighted average common shares outstanding 56,574,796 56,436,026 56,544,256 56,410,880 Effect of dilutive securities May Investor warrants (1) 349,539 299,391 327,307 266,118 Stock-based awards 826,895 429,655 751,518 294,135 Weighted average diluted common shares 57,751,230 57,165,072 57,623,081 56,971,133 Earnings per common share Basic earnings per common share $ 0.67 $ 0.69 $ 1.23 $ 1.12 Effect of dilutive securities Stock-based awards (0.01 ) (0.01 ) (0.02 ) (0.01 ) Diluted earnings per share $ 0.66 $ 0.68 $ 1.21 $ 1.11 (1) Exercise price of $10.00 per share and a fair value of $9 million at June 30, 2016 . |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (Dollars in millions) Provision for income taxes $ 22 $ 28 $ 43 $ 46 Effective tax provision rate 32.7 % 37.2 % 33.4 % 37.0 % |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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) June 30, 2016 Tangible capital (to tangible assets) $ 1,514 11.59 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,514 11.59 % $ 523 4.0 % $ 653 5.0 % Common equity Tier 1 capital (to RWA) 1,086 13.55 % 361 4.5 % 521 6.5 % Tier 1 capital (to risk-weighted assets) 1,514 18.89 % 481 6.0 % 642 8.0 % Total capital (to risk-weighted assets) 1,618 20.19 % 642 8.0 % 802 10.0 % December 31, 2015 Tangible capital (to tangible assets) $ 1,435 11.51 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,435 11.51 % $ 499 4.0 % $ 624 5.0 % Common equity Tier 1 capital (to RWA) 1,065 14.09 % 340 4.5 % 491 6.5 % Tier 1 capital (to risk-weighted assets) 1,435 18.98 % 454 6.0 % 605 8.0 % Total capital (to risk-weighted assets) 1,534 20.28 % 605 8.0 % 756 10.0 % N/A - Not applicable Bank Actual For Capital Adequacy Purposes Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2016 Tangible capital (to tangible assets) $ 1,576 12.03 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,576 12.03 % $ 524 4.0 % $ 655 5.0 % Common equity tier 1 capital (to RWA) 1,576 19.58 % 362 4.5 % 524 6.5 % Tier 1 capital (to risk-weighted assets) 1,576 19.58 % 483 6.0 % 644 8.0 % Total capital (to risk-weighted assets) 1,679 20.86 % 644 8.0 % 806 10.0 % December 31, 2015 Tangible capital (to tangible assets) $ 1,472 11.79 % N/A N/A N/A N/A Tier 1 capital (to adjusted tangible assets) 1,472 11.79 % $ 500 4.0 % $ 625 5.0 % Common equity tier 1 capital (to RWA) 1,472 19.42 % 341 4.5 % 493 6.5 % Tier 1 capital (to risk-weighted assets) 1,472 19.42 % 455 6.0 % 607 8.0 % Total capital (to risk-weighted assets) 1,570 20.71 % 607 8.0 % 758 10.0 % N/A - Not applicable |
Legal Proceedings, Contingenc42
Legal Proceedings, Contingencies and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Amount of Significant Commitments | A summary of the contractual amount of significant commitments is as follows: June 30, 2016 December 31, 2015 (Dollars in millions) Commitments to extend credit Mortgage loans interest-rate lock commitments $ 6,398 $ 3,792 HELOC commitments 161 150 Other consumer commitments 33 22 Warehouse loan commitments 779 871 Standby and commercial letters of credit 18 13 Commercial and industrial commitments 157 151 Other commercial commitments 723 497 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 , by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy. Level 1 Level 2 Level 3 Total Fair Value June 30, 2016 (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 640 $ — $ 640 Agency - Residential — 473 — 473 Municipal obligations — 32 — 32 Loans held-for-sale Residential first mortgage loans — 3,071 — 3,071 Loans held-for-investment Residential first mortgage loans — 6 — 6 Second mortgage loans — — 38 38 HELOC loans — — 44 44 Mortgage servicing rights — — 301 301 Derivative assets 3 92 83 178 Total assets at fair value $ 3 $ 4,314 $ 466 $ 4,783 Derivative liabilities $ (3 ) $ (130 ) $ — $ (133 ) Warrant liabilities — (9 ) — (9 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (3 ) $ (139 ) $ (84 ) $ (226 ) Level 1 Level 2 Level 3 Total Fair Value December 31, 2015 (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 766 $ — $ 766 Agency - Residential — 514 — 514 Municipal obligations — 14 — 14 Loans held-for-sale Residential first mortgage loans — 2,541 — 2,541 Loans held-for-investment Residential first mortgage loans — 6 — 6 Second mortgage loans — — 42 42 HELOC loans — — 64 64 Mortgage servicing rights — — 296 296 Derivative assets — 32 26 58 Total assets at fair value $ — $ 3,873 $ 428 $ 4,301 Derivative liabilities $ (1 ) $ (17 ) $ — $ (18 ) Warrant liabilities — (8 ) — (8 ) DOJ litigation settlement — — (84 ) (84 ) Total liabilities at fair value $ (1 ) $ (25 ) $ (84 ) $ (110 ) |
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 six months ended June 30, 2016 and 2015 (including the change in fair value) for financial instruments classified by us within level 3 of the valuation hierarchy: Recorded in Earnings Recorded in OCI Three Months Ended June 30, 2016 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Balance at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 40 $ — $ — $ — $ — $ — $ (2 ) $ 38 HELOC loans 55 (3 ) — — — — (8 ) 44 Mortgage servicing rights 281 (44 ) — — 64 — — 301 Totals $ 376 $ (47 ) $ — $ — $ 64 $ — $ (10 ) $ 383 Liabilities DOJ litigation settlement $ (84 ) $ — $ — $ — $ — $ — $ — $ (84 ) Derivative financial instruments (net) Rate lock commitments $ 61 $ 58 $ — $ — $ 106 $ (126 ) $ (16 ) $ 83 Three Months Ended June 30, 2015 Assets Other investments $ 100 $ — $ — $ — $ — $ — $ — $ 100 Investment securities available-for-sale Loans held-for-investment Second mortgage loans 50 2 — — — — (4 ) 48 HELOC loans 113 (2 ) — — — — (18 ) 93 Mortgage servicing rights 279 10 — — 77 (49 ) — 317 Totals $ 542 $ 10 $ — $ — $ 77 $ (49 ) $ (22 ) $ 558 Liabilities Long-term debt $ (70 ) $ — $ (1 ) $ — $ — $ 24 $ 11 $ (36 ) DOJ litigation settlement (82 ) (2 ) — — — — — (84 ) Totals $ (152 ) $ (2 ) $ (1 ) $ — $ — $ 24 $ 11 $ (120 ) Derivative financial instruments (net) Rate lock commitments $ 55 $ (30 ) $ — $ — $ 93 $ (75 ) $ (13 ) $ 30 Recorded in Earnings Recorded in OCI Six Months Ended June 30, 2016 Balance at Beginning of Period Total Unrealized Gains / (Losses) Total Realized Gains / (Losses) Total Unrealized Gains / (Losses) Purchases / Originations Sales Settlements Balance at End of Period Assets (Dollars in millions) Loans held-for-investment Second mortgage loans $ 42 $ 1 $ — $ — $ — $ — $ (5 ) 38 HELOC loans 64 (3 ) — — — — (17 ) 44 Mortgage servicing rights 296 (92 ) — — 121 (24 ) — 301 Totals $ 402 $ (94 ) $ — $ — $ 121 $ (24 ) $ (22 ) $ 383 Liabilities DOJ litigation $ (84 ) $ — $ — $ — $ — $ — $ — (84 ) Derivative financial instruments (net) Rate lock commitments $ 26 $ 120 $ — $ — $ 187 $ (220 ) $ (30 ) $ 83 Six Months Ended June 30, 2015 Assets Other investments $ 100 $ — $ — $ — $ — $ — $ — $ 100 Investment securities available-for-sale Municipal obligation 2 — — — — — (2 ) — Loans held-for-investment Second mortgage loans 53 2 1 — — — (8 ) 48 HELOC loans 132 (6 ) — — — — (33 ) 93 Mortgage servicing rights 258 (16 ) — — 146 (71 ) — 317 Totals $ 545 $ (20 ) $ 1 $ — $ 146 $ (71 ) $ (43 ) $ 558 Liabilities Long-term debt $ (84 ) $ — $ (3 ) $ — $ — $ 24 $ 27 $ (36 ) DOJ litigation (82 ) (2 ) — — — — — (84 ) Totals $ (166 ) $ (2 ) $ (3 ) $ — $ — $ 24 $ 27 $ (120 ) Derivative financial instruments (net) Rate lock commitments $ 31 $ 7 $ — $ — $ 191 $ (172 ) $ (27 ) $ 30 |
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 June 30, 2016 and December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) June 30, 2016 (Dollars in millions) Assets Second mortgage loans $ 38 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%)10.9% - 16.4% (13.6%) HELOC loans $ 44 Discounted cash flows Discount rate 7.8% - 11.7% (9.7%) Mortgage servicing rights $ 301 Discounted cash flows Option adjusted spread 6.7% - 10.1% (8.4%) Liabilities DOJ litigation settlement $ (84 ) Discounted cash flows Discount rate 5.6% - 8.3% (6.9%) Derivative financial instruments Rate lock commitments $ 83 Consensus pricing Origination pull-through rate 65.5% - 98.3% (81.9%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 (Dollars in millions) Assets Second mortgage loans $ 42 Discounted cash flows Discount rate 7.2% - 10.8% (9.0%)13.5% - 20.2% (16.9%) HELOC loans $ 64 Discounted cash flows Discount rate 6.8% - 10.1% (8.4%) Mortgage servicing rights $ 296 Discounted cash flows Option adjusted spread 6.6% - 9.9% (8.2%) Liabilities DOJ litigation settlement $ (84 ) Discounted cash flows Discount rate 4.9% - 9.5% (7.2%) Derivative financial instruments Rate lock commitments $ 26 Consensus pricing Origination pull-through rate 67.6% - 101.5% (84.6%) |
Fair Value Inputs, Assets, Quantitative Information | 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. Additionally, the key economic assumptions used in determining the fair value of MSRs capitalized during the three and six months ended June 30, 2016 and 2015 periods were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average life (in years) 7.0 8.4 7.0 7.9 Weighted average constant prepayment rate 13.3 % 9.3 % 13.5 % 11.4 % Weighted average option adjusted spread 8.9 % 8.7 % 8.2 % 8.6 % The key economic assumptions reflected in the overall fair value of the entire portfolio of MSRs were as follows: June 30, December 31, Weighted average life (in years) 5.9 7.3 Weighted average constant prepayment rate 16.4 % 12.6 % Weighted average option adjusted spread 8.4 % 8.2 % |
Fair Value Measurements, Nonrecurring | These assets are measured at the lower of cost or market and had a fair value below cost at the end of the period as summarized below: Total (1) Level 2 Level 3 (Dollars in millions) June 30, 2016 Loans held-for-sale (2) $ 16 $ 16 $ — Impaired loans held-for-investment (3) Residential first mortgage loans 25 — 25 Commercial and industrial loans 1 — 1 Repossessed assets (4) 19 — 19 Totals $ 61 $ 16 $ 45 December 31, 2015 Loans held-for-sale (2) $ 8 $ 8 $ — Impaired loans held-for-investment (3) Residential first mortgage loans 40 — 40 Commercial real estate loans 2 — 2 Repossessed assets (4) 17 — 17 Totals $ 67 $ 8 $ 59 (1) The fair values are obtained at various dates during the six months ended June 30, 2016 and the year ended December 31, 2015 , respectively. (2) We recorded less than $1 million and $1 million in fair value losses on loans held-for-sale for which we did not elect the fair value option (included in interest income on the Consolidated Statements of Operations) during the three and six months ended June 30, 2016 , respectively compared to less than $1 million and $1 million in fair value losses on loans held-for-sale during the three and six months ended June 30, 2015 , respectively. (3) We recorded $9 million and $20 million in fair value losses on impaired loans (included in provision (benefit) for loan losses on Consolidated Statements of Operations) during the three and six months ended June 30, 2016 , respectively, compared to $21 million and $56 million in fair value losses on impaired loans during the three and six months ended June 30, 2015 , respectively. (4) We recorded $3 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 six months ended June 30, 2016 , respectively and recognized net gain of zero and $1 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 six months ended June 30, 2016 . We recorded zero and $1 million in losses related to write downs of repossessed assets based on the estimated fair value of the specific assets during the three and six months ended June 30, 2015 , respectively, and recognized a net gains of $1 million and $1 million on sales of repossessed assets during the three and six months ended June 30, 2015 , respectively. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following tables present the quantitative information about nonrecurring level 3 fair value financial instruments and the fair value measurements as of June 30, 2016 and December 31, 2015 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) June 30, 2016 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 25 Fair value of collateral Loss severity discount 20% - 25% (21.7%) Commercial and industrial loans $ 1 Fair value of collateral Loss severity discount 50% - 55% (53.6%) Repossessed assets $ 19 Fair value of collateral Loss severity discount 18% - 99% (58.4%) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 (Dollars in millions) Impaired loans held-for-investment Residential first mortgage loans $ 40 Fair value of collateral Loss severity discount 35% - 45% (35.2%) Commercial real estate loans $ 2 Fair value of collateral Loss severity discount 45% - 55% (50.1%) Repossessed assets $ 17 Fair value of collateral Loss severity discount 16% - 100% (48.7%) |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amount and estimated fair value of financial instruments that are carried either at fair value, cost, or amortized cost: June 30, 2016 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 184 $ 184 $ 184 $ — $ — Investment securities available-for-sale 1,145 $ 1,145 — 1,145 — Investment securities held-to-maturity 1,211 $ 1,237 — 1,237 — Loans held-for-sale 3,091 3,094 — 3,094 — Loans with government guarantees 435 422 — 422 — Loans held-for-investment, net 5,672 5,640 — 6 5,634 Repossessed assets 19 19 — — 19 Federal Home Loan Bank stock 172 172 — 172 — Mortgage servicing rights 301 301 — — 301 Bank owned life insurance 267 267 — 267 — Other assets, foreclosure claims 178 178 — 178 — Derivative financial instruments, assets 178 178 3 92 83 Liabilities Retail deposits Demand deposits and savings accounts $ (5,071 ) $ (4,863 ) $ — $ (4,863 ) $ — Certificates of deposit (1,023 ) (1,038 ) — (1,038 ) — Government deposits (974 ) (962 ) — (962 ) — Company controlled deposits (1,503 ) (1,459 ) — (1,459 ) — Federal Home Loan Bank advances (2,646 ) (2,635 ) — (2,635 ) — Other long-term debt (247 ) (77 ) — (77 ) — Warrant liabilities (9 ) (9 ) — (9 ) — DOJ litigation settlement (84 ) (84 ) — — (84 ) Derivative financial instruments, liabilities (133 ) (133 ) (3 ) (130 ) — December 31, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 208 $ 208 $ 208 $ — $ — Investment securities available-for-sale 1,294 1,294 — 1,294 — Investment securities held-to-maturity 1,268 1,262 — 1,262 — Loans held-for-sale 2,576 2,578 — 2,578 — Loans with government guarantees 485 469 — 469 — Loans held-for-investment, net 6,165 6,121 — 6 6,115 Repossessed assets 17 17 — — 17 Federal Home Loan Bank stock 170 170 — 170 — Mortgage servicing rights 296 296 — — 296 Bank owned life insurance 178 178 — 178 — Other assets, foreclosure claims 210 210 — 210 — Derivative financial instruments, assets 58 58 — 32 26 Liabilities Retail deposits Demand deposits and savings accounts $ (5,008 ) $ (4,744 ) $ — $ (4,744 ) $ — Certificates of deposit (826 ) (833 ) — (833 ) — Government deposits (1,062 ) (1,045 ) — (1,045 ) — Company controlled deposits (1,039 ) (947 ) — (947 ) — Federal Home Loan Bank advances (3,541 ) (3,543 ) — (3,543 ) — Long-term debt (247 ) (89 ) — (89 ) — Warrant liabilities (8 ) (8 ) — (8 ) — DOJ litigation settlement (84 ) (84 ) — — (84 ) Derivative financial instruments, liabilities (18 ) (18 ) (1 ) (17 ) — |
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 fair value option has been elected: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Assets (Dollars in millions) Loans held-for-sale Net gain on loan sales $ 145 $ 37 $ 289 $ 142 Loans held-for-investment Interest income on loans $ 2 $ 4 $ 2 $ 7 Other noninterest income — (25 ) — (34 ) Liabilities Long-term debt Other noninterest income $ — $ (14 ) $ — $ (25 ) Litigation settlement Other noninterest expense $ — $ 3 $ — $ 2 |
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 June 30, 2016 and December 31, 2015 for assets and liabilities for which the fair value option has been elected: June 30, 2016 December 31, 2015 (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-sale $ 1 $ 1 $ — $ 1 $ — $ (1 ) Loans held-for-investment 22 10 (12 ) 21 10 (11 ) Total nonaccrual loans $ 23 $ 11 $ (12 ) $ 22 $ 10 $ (12 ) Other performing loans Loans held-for-sale $ 2,921 $ 3,070 $ 149 $ 2,451 $ 2,541 $ 90 Loans held-for-investment 90 78 (12 ) 112 101 (11 ) Total other performing loans $ 3,011 $ 3,148 $ 137 $ 2,563 $ 2,642 $ 79 Total loans Loans held-for-sale $ 2,922 $ 3,071 $ 149 $ 2,452 $ 2,541 $ 89 Loans held-for-investment 112 88 (24 ) 133 111 (22 ) Total loans $ 3,034 $ 3,159 $ 125 $ 2,585 $ 2,652 $ 67 Liabilities Litigation settlement (1) $ (118 ) $ (84 ) $ 34 $ (118 ) $ (84 ) $ 34 (1) We are obligated to pay $118 million in installment payments upon meeting certain performance conditions. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 Mortgage Originations Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 20 $ 7 $ 49 $ 1 $ 77 Net gain on loan sales 87 — 3 — 90 Representation and warranty benefit 4 — — — 4 Other noninterest income 9 13 6 6 34 Total net interest income and noninterest income 120 20 58 7 205 (Provision) benefit for loan losses — — 3 — 3 Asset resolution — (1 ) — — (1 ) Depreciation and amortization expense (1 ) (1 ) (2 ) (4 ) (8 ) Other noninterest expense (61 ) (21 ) (45 ) (3 ) (130 ) Total noninterest expense (62 ) (23 ) (47 ) (7 ) (139 ) Income (loss) before income taxes 58 (3 ) 14 — 69 Provision for income taxes — — — 22 22 Net income (loss) $ 58 $ (3 ) $ 14 $ (22 ) $ 47 Intersegment revenue $ 1 $ 6 $ — $ (7 ) $ — Average balances Loans held-for-sale $ 2,828 $ — $ 56 $ — $ 2,884 Loans with government guarantees — 444 — — 444 Loans held-for-investment 3 — 5,566 — 5,569 Total assets 3,471 678 5,653 3,636 13,438 Deposits — 1,558 7,073 — 8,631 Three Months Ended June 30, 2015 Mortgage Originations Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 19 $ 4 $ 42 $ 8 $ 73 Net gain on loan sales 87 — (4 ) — 83 Representation and warranty benefit 5 — — — 5 Other noninterest income 24 14 1 (1 ) 38 Total net interest income and noninterest income 135 18 39 7 199 (Provision) benefit for loan losses — — 13 — 13 Asset resolution — (5 ) — — (5 ) Depreciation and amortization expense — — (2 ) (3 ) (5 ) Other noninterest expense (61 ) (28 ) (37 ) (2 ) (128 ) Total noninterest expense (61 ) (33 ) (39 ) (5 ) (138 ) Income (loss) before income taxes 74 (15 ) 13 2 74 Provision for income taxes — — — 28 28 Net income (loss) $ 74 $ (15 ) $ 13 $ (26 ) $ 46 Intersegment revenue $ 12 $ (2 ) $ (5 ) $ (5 ) $ — Average balances Loans held-for-sale $ 2,173 $ — $ 45 $ — $ 2,218 Loans with government guarantees — 630 — — 630 Loans held-for-investment 2 — 4,831 105 4,938 Total assets 2,628 986 4,803 3,394 11,811 Deposits — 1,128 6,608 — 7,736 Six Months Ended June 30, 2016 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 40 $ 13 $ 96 $ 7 $ 156 Net gain (loss) on loan sales 156 — 9 — 165 Representation and warranty benefit 6 — — — 6 Other noninterest income (loss) 13 26 13 10 62 Total net interest income and noninterest income 215 39 118 17 389 (Provision) benefit for loan losses — — 16 — 16 Asset resolution — (4 ) — — (4 ) Depreciation and amortization expense (2 ) (2 ) (4 ) (7 ) (15 ) Other noninterest expense (118 ) (45 ) (88 ) (6 ) (257 ) Total noninterest expense (120 ) (51 ) (92 ) (13 ) (276 ) Income (loss) before income taxes 95 (12 ) 42 4 129 Provision for income taxes — — — 43 43 Net income (loss) $ 95 $ (12 ) $ 42 $ (39 ) $ 86 Intersegment revenue $ 2 $ 11 $ (1 ) $ (12 ) $ — Average balances Loans held-for-sale $ 2,780 $ — $ 117 $ — $ 2,897 Loans with government guarantees — 460 — — 460 Loans held-for-investment 7 — 5,611 — 5,618 Total assets 3,409 703 5,745 3,634 13,491 Deposits — 1,357 6,984 — 8,341 Six Months Ended June 30, 2015 Mortgage Origination Mortgage Servicing Community Banking Other Total Summary of Operations (Dollars in millions) Net interest income $ 34 $ 7 $ 81 $ 16 $ 138 Net gain (loss) on loan sales 183 — (9 ) — 174 Representation and warranty benefit 7 — — — 7 Other noninterest income 34 27 8 (5 ) 64 Total net interest income and noninterest income 258 34 80 11 383 (Provision) benefit for loan losses — — 17 — 17 Asset resolution — (12 ) (1 ) — (13 ) Depreciation and amortization expense (1 ) (1 ) (3 ) (6 ) (11 ) Other noninterest expense (118 ) (53 ) (77 ) (4 ) (252 ) Total noninterest expense (119 ) (66 ) (81 ) (10 ) (276 ) Income (loss) before income taxes 139 (32 ) 16 1 124 Benefit for income taxes — — — 46 46 Net income (loss) $ 139 $ (32 ) $ 16 $ (45 ) $ 78 Intersegment revenue $ 19 $ 1 $ (10 ) $ (10 ) $ — Average balances Loans held-for-sale $ 1,988 $ — $ 43 $ — $ 2,031 Loans with government guarantees — 747 — — 747 Loans held-for-investment 2 — 4,500 115 4,617 Total assets 2,477 1,077 4,457 3,325 11,336 Deposits — 1,038 6,515 — 7,553 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Investment securities | |||||
Amortized Cost | $ 1,118,000,000 | $ 1,118,000,000 | $ 1,294,000,000 | ||
Gross Unrealized Gains | 27,000,000 | 27,000,000 | 5,000,000 | ||
Gross Unrealized Losses | 0 | 0 | (5,000,000) | ||
Fair Value | 1,145,000,000 | 1,145,000,000 | 1,294,000,000 | ||
Held-to-maturity Securities [Abstract] | |||||
Amortized Cost | 1,211,000,000 | 1,211,000,000 | 1,268,000,000 | ||
Gross Unrealized Gains | 26,000,000 | 26,000,000 | 0 | ||
Gross Unrealized Losses | 0 | 0 | (6,000,000) | ||
Fair Value | 1,237,000,000 | 1,237,000,000 | 1,262,000,000 | ||
Other than temporary impairments | 0 | $ 0 | 0 | $ 0 | |
Agency - Commercial | |||||
Held-to-maturity Securities [Abstract] | |||||
Amortized Cost | 635,000,000 | 635,000,000 | 634,000,000 | ||
Gross Unrealized Gains | 12,000,000 | 12,000,000 | 0 | ||
Gross Unrealized Losses | 0 | 0 | (2,000,000) | ||
Fair Value | 647,000,000 | 647,000,000 | 632,000,000 | ||
Agency - Residential | |||||
Held-to-maturity Securities [Abstract] | |||||
Amortized Cost | 576,000,000 | 576,000,000 | 634,000,000 | ||
Gross Unrealized Gains | 14,000,000 | 14,000,000 | 0 | ||
Gross Unrealized Losses | 0 | 0 | (4,000,000) | ||
Fair Value | 590,000,000 | 590,000,000 | 630,000,000 | ||
Agency - Commercial | |||||
Investment securities | |||||
Amortized Cost | 626,000,000 | 626,000,000 | 766,000,000 | ||
Gross Unrealized Gains | 14,000,000 | 14,000,000 | 3,000,000 | ||
Gross Unrealized Losses | 0 | 0 | (3,000,000) | ||
Fair Value | 640,000,000 | 640,000,000 | 766,000,000 | ||
Agency - Residential | |||||
Investment securities | |||||
Amortized Cost | 461,000,000 | 461,000,000 | 514,000,000 | ||
Gross Unrealized Gains | 12,000,000 | 12,000,000 | 2,000,000 | ||
Gross Unrealized Losses | 0 | 0 | (2,000,000) | ||
Fair Value | 473,000,000 | 473,000,000 | 514,000,000 | ||
Municipal obligations | |||||
Investment securities | |||||
Amortized Cost | 31,000,000 | 31,000,000 | 14,000,000 | ||
Gross Unrealized Gains | 1,000,000 | 1,000,000 | 0 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | $ 32,000,000 | $ 32,000,000 | $ 14,000,000 |
Investment Securities (Availabl
Investment Securities (Available-for-sale and Held-to-maturity Securities, Unrealized Losses) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Purchase of investment securities available-for-sale | $ 68,000,000 | $ 724,000,000 | ||||
Sales of AFS securities | $ 175,000,000 | $ 0 | 175,000,000 | 0 | ||
Sales of AFS securities, realized gain (loss) | 1,000,000 | 1,000,000 | ||||
Non-cash reclassification of investment AFS to HTM | $ 1,100,000,000 | |||||
Transfer of available-for-sale securities to held-to-maturity, premium | 8,000,000 | |||||
Unrealized holding gain (loss), net of tax included in transfer | 5,000,000 | |||||
Gain (loss) related to transfer of HTM securities | $ 0 | |||||
Purchase of investment securities HTM | 0 | 0 | 15,000,000 | 0 | ||
Available-for-sale Securities Pledged as Collateral | 234,000,000 | 234,000,000 | $ 14,000,000 | |||
Agency - Commercial | ||||||
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 | $ 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Positions | security | 0 | 0 | 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months or Over, Unrealized Loss | $ 0 | $ 0 | $ 0 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 57,000,000 | $ 57,000,000 | $ 471,000,000 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Positions | security | 4 | 4 | 27 | |||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ 0 | $ 0 | $ (2,000,000) | |||
Agency - Residential | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months and Over, Fair Value | $ 0 | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Positions | security | 0 | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration 12 Months or Over, Unrealized Loss | $ 0 | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 547,000,000 | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Positions | security | 50 | |||||
Held-to-maturity Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ (4,000,000) | |||||
US Government-sponsored Enterprises Debt Securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Purchase of investment securities available-for-sale | 40,000,000 | $ 72,000,000 | 68,000,000 | $ 724,000,000 | ||
Agency - Commercial | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Fair Value | $ 7,000,000 | $ 7,000,000 | $ 0 | |||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Securities | security | 1 | 1 | 0 | |||
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 | $ 13,000,000 | $ 13,000,000 | $ 482,000,000 | |||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Securities | security | 2 | 2 | 27 | |||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ 0 | $ 0 | $ (3,000,000) | |||
Agency - Residential | ||||||
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 | |||||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Number of Securities | security | 2 | |||||
Available-for-sale Securities, Unrealized Loss Position with Duration 12 Months and Over, Unrealized Loss | $ 0 | |||||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Fair Value | $ 224,000,000 | |||||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Number of Securities | security | 15 | |||||
Available-for-Sale Securities, Unrealized Loss Position with Duration Under 12 Months, Unrealized Loss | $ (2,000,000) |
Investment Securities (Contract
Investment Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investment Securities Available-for-Sale, Amortized Cost | ||
Due after one year through five years, amortized cost | $ 18 | |
Due after five years through 10 years, amortized cost | 7 | |
Due after 10 years, amortized cost | 1,093 | |
Total, amortized cost | 1,118 | |
Investment Securities Available-for-Sale, Estimated Fair Value | ||
Due after one year through five years, fair value | 18 | |
Due after five years through 10 years, fair value | 7 | |
Due after 10 years, fair value | 1,120 | |
Fair Value | $ 1,145 | $ 1,294 |
Investment Securities Available-for-Sale, Weighted-Average Yield | ||
Due after one year through five years, weighted average yield (as a percent) | 3.97% | |
Due after five years through 10 years, weighted average yield (as a percent) | 2.66% | |
Due after 10 years, weighted average yield (as a percent) | 2.59% | |
Investment Securities Held-to-maturity, Amortized cost | ||
Due after one year through five years, amortized cost | $ 0 | |
Due after five years through 10 years, amortized cost | 61 | |
Due after 10 years, amortized cost | 1,150 | |
Amortized Cost | 1,211 | 1,268 |
Investment Securities Held-to-maturity, Estimated Fair Value | ||
Due after one year through five years, fair value | 0 | |
Due after five years through 10 years, fair value | 64 | |
Due after 10 years, fair value | 1,173 | |
Fair Value | $ 1,237 | $ 1,262 |
Investment Securities Held-to-maturity, Weighted-Average Yield | ||
Due after one year through five years, weighted average yield (as a percent) | 0.00% | |
Due after five years through 10 years, weighted average yield (as a percent) | 2.50% | |
Due after 10 years, weighted average yield (as a percent) | 2.40% |
Loans Held-for-Sale (Details)
Loans Held-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 3,091 | $ 3,091 | $ 2,576 | ||
Net gain on loan sales | 90 | $ 83 | 165 | $ 174 | |
Loans held-for-sale, other | 20 | 20 | 35 | ||
Loans Held-for-sale [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net gain on loan sales | 85 | $ 83 | 151 | $ 174 | |
Consumer loans | Residential first mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 3,100 | $ 3,100 | $ 2,600 |
Loans with Government Guarant49
Loans with Government Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Debt instrument, term (in years) | 10 years | |
Loans with government guarantees | $ 435 | $ 485 |
Loans with government guarantees | 485 | |
Other assets | ||
Debt Instrument [Line Items] | ||
Repossessed assets and associated claims | $ 178 | $ 210 |
Loans Held-for-Investment (Deta
Loans Held-for-Investment (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | $ 5,822 | $ 6,352 |
Residential first mortgage loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 2,075 | 3,100 |
Second mortgage | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 127 | 135 |
HELOC loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 346 | 384 |
Other | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 32 | 31 |
Consumer loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 2,580 | 3,650 |
Commercial real estate | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 976 | 814 |
Commercial and industrial | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 615 | 552 |
Warehouse lending | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 1,651 | 1,336 |
Commercial loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | 3,242 | 2,702 |
Commercial Borrower [Member] | Commercial real estate | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total Investment Loans | $ 221 | $ 188 |
Loans Held-for-Investment (Narr
Loans Held-for-Investment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-cash reclassification of mortgage loans originated HFS to HFI | $ 0 | $ 27 | |||
Charge-offs related to sale of loans | $ 15 | 51 | |||
Net gain (loss) on sale of assets | $ 0 | (2) | (2) | (2) | |
Charge-offs | 10 | 21 | 24 | 64 | |
Loans held-for-investment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans Pledged as Collateral | 4,900 | 4,900 | $ 5,800 | ||
Residential first mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs related to sale of loans | 1,200 | 386 | |||
Net gain (loss) on sale of assets | 14 | (1) | |||
Charge-offs | 2 | 8 | 51 | ||
Unpaid principal balances | 150 | 197 | |||
Premiums | $ 1 | $ 7 | 1 | 7 | |
Nonperforming | Residential first mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Charge-offs related to sale of loans | $ 110 | $ 401 |
Loans Held-for-Investment (Allo
Loans Held-for-Investment (Allowance for Loan Losses Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | $ 162 | $ 253 | $ 187 | $ 297 |
Charge-offs | (10) | (21) | (24) | (64) |
Recoveries | 1 | 3 | 3 | 6 |
(Benefit) provision | (3) | (13) | (16) | (17) |
Ending balance allowance for loan losses | 150 | 222 | 150 | 222 |
Charge-offs related to sale of loans | 15 | 51 | ||
Residential first mortgage | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 95 | 188 | 116 | 234 |
Charge-offs | (8) | (19) | (19) | (60) |
Recoveries | 1 | 1 | 1 | 2 |
(Benefit) provision | (7) | (19) | (17) | (25) |
Ending balance allowance for loan losses | 81 | 151 | 81 | 151 |
Second mortgage | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 10 | 12 | 11 | 12 |
Charge-offs | (1) | (1) | (2) | (2) |
Recoveries | 1 | 1 | 1 | 1 |
(Benefit) provision | 0 | 2 | 0 | 3 |
Ending balance allowance for loan losses | 10 | 14 | 10 | 14 |
HELOC commitments | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 20 | 21 | 21 | 19 |
Charge-offs | 0 | 0 | (1) | (1) |
Recoveries | (1) | 0 | 0 | 0 |
(Benefit) provision | 1 | 4 | 0 | 7 |
Ending balance allowance for loan losses | 20 | 25 | 20 | 25 |
Other Consumer | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 2 | 0 | 2 | 1 |
Charge-offs | (1) | (1) | (2) | (1) |
Recoveries | 0 | 1 | 1 | 1 |
(Benefit) provision | 0 | 1 | 0 | 0 |
Ending balance allowance for loan losses | 1 | 1 | 1 | 1 |
Commercial real estate | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 19 | 16 | 18 | 17 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 2 |
(Benefit) provision | 0 | (1) | 1 | (4) |
Ending balance allowance for loan losses | 19 | 15 | 19 | 15 |
Commercial and industrial | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 10 | 12 | 13 | 11 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
(Benefit) provision | 1 | 0 | (2) | 1 |
Ending balance allowance for loan losses | 11 | 12 | 11 | 12 |
Warehouse lending | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance allowance for loan losses | 6 | 4 | 6 | 3 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
(Benefit) provision | 2 | 0 | 2 | 1 |
Ending balance allowance for loan losses | 8 | $ 4 | 8 | $ 4 |
Loans Insured or Guaranteed by US Government Authorities | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Charge-offs | $ (4) | |||
Charge-offs related to sale of loans | $ 7 |
Loans Held-for-Investment (Al53
Loans Held-for-Investment (Allowance Additional Disclosure) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | $ 77 | $ 120 | ||||
Collectively evaluated | 5,657 | 6,121 | ||||
Total loans | 5,734 | 6,241 | ||||
Individually evaluated | 16 | 20 | ||||
Collectively evaluated | 134 | 167 | ||||
Total allowance for loan losses | 150 | $ 162 | 187 | $ 222 | $ 253 | $ 297 |
Residential first mortgage | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 43 | 87 | ||||
Collectively evaluated | 2,027 | 3,007 | ||||
Total loans | 2,070 | 3,094 | ||||
Individually evaluated | 7 | 12 | ||||
Collectively evaluated | 74 | 104 | ||||
Total allowance for loan losses | 81 | 95 | 116 | 151 | 188 | 234 |
Second mortgage | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 27 | 28 | ||||
Collectively evaluated | 61 | 65 | ||||
Total loans | 88 | 93 | ||||
Individually evaluated | 6 | 6 | ||||
Collectively evaluated | 4 | 5 | ||||
Total allowance for loan losses | 10 | 10 | 11 | 14 | 12 | 12 |
HELOC commitments | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 6 | 3 | ||||
Collectively evaluated | 296 | 318 | ||||
Total loans | 302 | 321 | ||||
Individually evaluated | 3 | 1 | ||||
Collectively evaluated | 17 | 20 | ||||
Total allowance for loan losses | 20 | 20 | 21 | 25 | 21 | 19 |
Other Consumer | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 32 | 31 | ||||
Total loans | 32 | 31 | ||||
Individually evaluated | 0 | 1 | ||||
Collectively evaluated | 1 | 1 | ||||
Total allowance for loan losses | 1 | 2 | 2 | 1 | 0 | 1 |
Commercial real estate | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 976 | 814 | ||||
Total loans | 976 | 814 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 19 | 18 | ||||
Total allowance for loan losses | 19 | 19 | 18 | 15 | 16 | 17 |
Commercial and industrial | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 1 | 2 | ||||
Collectively evaluated | 614 | 550 | ||||
Total loans | 615 | 552 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 11 | 13 | ||||
Total allowance for loan losses | 11 | 10 | 13 | 12 | 12 | 11 |
Warehouse lending | ||||||
Allowance for Loan Losses [Line Items] | ||||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 1,651 | 1,336 | ||||
Total loans | 1,651 | 1,336 | ||||
Individually evaluated | 0 | 0 | ||||
Collectively evaluated | 8 | 6 | ||||
Total allowance for loan losses | $ 8 | $ 6 | $ 6 | $ 4 | $ 4 | $ 3 |
Loans Held-for-Investment (Past
Loans Held-for-Investment (Past Due Loans) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Loans, Aging [Abstract] | |||||
Total Past Due | $ 51,000,000 | $ 51,000,000 | $ 80,000,000 | ||
Current | 5,771,000,000 | 5,771,000,000 | 6,272,000,000 | ||
Total Investment Loans | 5,822,000,000 | 5,822,000,000 | 6,352,000,000 | ||
Loans greater than 90 days past due accounted for under the fair value option | 10,000,000 | 10,000,000 | 10,000,000 | ||
Accrued interest on nonaccrual loans | 1,000,000 | $ 1,000,000 | 1,000,000 | $ 3,000,000 | |
90 Days and Still Accruing | 0 | 0 | 0 | ||
Residential first mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 36,000,000 | 36,000,000 | 63,000,000 | ||
Current | 2,039,000,000 | 2,039,000,000 | 3,037,000,000 | ||
Total Investment Loans | 2,075,000,000 | 2,075,000,000 | 3,100,000,000 | ||
Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 2,000,000 | ||
Current | 124,000,000 | 124,000,000 | 133,000,000 | ||
Total Investment Loans | 127,000,000 | 127,000,000 | 135,000,000 | ||
HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 12,000,000 | 12,000,000 | 12,000,000 | ||
Current | 334,000,000 | 334,000,000 | 372,000,000 | ||
Total Investment Loans | 346,000,000 | 346,000,000 | 384,000,000 | ||
Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 1,000,000 | ||
Current | 32,000,000 | 32,000,000 | 30,000,000 | ||
Total Investment Loans | 32,000,000 | 32,000,000 | 31,000,000 | ||
Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 51,000,000 | 51,000,000 | 78,000,000 | ||
Current | 2,529,000,000 | 2,529,000,000 | 3,572,000,000 | ||
Total Investment Loans | 2,580,000,000 | 2,580,000,000 | 3,650,000,000 | ||
Commercial real estate | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
Current | 976,000,000 | 976,000,000 | 814,000,000 | ||
Total Investment Loans | 976,000,000 | 976,000,000 | 814,000,000 | ||
Commercial and industrial | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 2,000,000 | ||
Current | 615,000,000 | 615,000,000 | 550,000,000 | ||
Total Investment Loans | 615,000,000 | 615,000,000 | 552,000,000 | ||
Warehouse lending | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
Current | 1,651,000,000 | 1,651,000,000 | 1,336,000,000 | ||
Total Investment Loans | 1,651,000,000 | 1,651,000,000 | 1,336,000,000 | ||
Commercial loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 2,000,000 | ||
Current | 3,242,000,000 | 3,242,000,000 | 2,700,000,000 | ||
Total Investment Loans | 3,242,000,000 | 3,242,000,000 | 2,702,000,000 | ||
30-59 Days Past Due | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 5,000,000 | 5,000,000 | 10,000,000 | ||
30-59 Days Past Due | Residential first mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 7,000,000 | ||
30-59 Days Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
30-59 Days Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 2,000,000 | 2,000,000 | 2,000,000 | ||
30-59 Days Past Due | Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 1,000,000 | ||
30-59 Days Past Due | Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 5,000,000 | 5,000,000 | 10,000,000 | ||
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 | 2,000,000 | 2,000,000 | 4,000,000 | ||
60-89 Days Past Due | Residential first mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 3,000,000 | ||
60-89 Days Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
60-89 Days Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 1,000,000 | 1,000,000 | 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 | 2,000,000 | 2,000,000 | 4,000,000 | ||
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 | 44,000,000 | 44,000,000 | 66,000,000 | ||
90 Days or Greater Past Due | Residential first mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 32,000,000 | 32,000,000 | 53,000,000 | ||
90 Days or Greater Past Due | Second mortgage | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 3,000,000 | 3,000,000 | 2,000,000 | ||
90 Days or Greater Past Due | HELOC commitments | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 9,000,000 | 9,000,000 | 9,000,000 | ||
90 Days or Greater Past Due | Other | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 0 | 0 | 0 | ||
90 Days or Greater Past Due | Consumer loans | |||||
Loans, Aging [Abstract] | |||||
Total Past Due | 44,000,000 | 44,000,000 | 64,000,000 | ||
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 | 0 | 0 | 2,000,000 | ||
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 | $ 0 | $ 0 | $ 2,000,000 |
Loans Held-for-Investment (Trou
Loans Held-for-Investment (Troubled Debt Restructurings) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | $ 94 | $ 136 |
TDR loans under fair value option | 30 | 32 |
Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 73 | 101 |
Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 21 | 35 |
Consumer loans | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 93 | |
Allowance for loan losses on TDR loans | 12 | 15 |
Consumer loans | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 72 | |
Consumer loans | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 21 | |
Consumer loans | Residential first mortgage | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 34 | 76 |
Consumer loans | Residential first mortgage | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 21 | 49 |
Consumer loans | Residential first mortgage | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 13 | 27 |
Consumer loans | Second mortgage | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 31 | 33 |
Consumer loans | Second mortgage | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 30 | 32 |
Consumer loans | Second mortgage | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | 1 |
Consumer loans | HELOC commitments | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 28 | 27 |
Consumer loans | HELOC commitments | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 21 | 20 |
Consumer loans | HELOC commitments | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 7 | $ 7 |
Commercial loans | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | |
Commercial loans | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | |
Commercial loans | Nonperforming | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 0 | |
Commercial loans | Commercial and industrial | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | |
Commercial loans | Commercial and industrial | Performing | ||
Troubled Debt Restructurings [Line Items] | ||
TDR Balance | 1 | |
Commercial loans | Commercial and industrial | 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 | 6 Months Ended | ||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | |
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 28 | 237 | 128 | 420 |
Pre-Modification Unpaid Principal Balance | $ 3 | $ 32 | $ 12 | $ 64 |
Post-Modification Unpaid Principal Balance | 3 | 30 | 11 | 61 |
Increase in Allowance at Modification | $ 0 | $ (2) | $ 0 | $ (1) |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 1 | 5 | 1 | |
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 | |
Residential first mortgage | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 3 | 77 | 16 | 191 |
Pre-Modification Unpaid Principal Balance | $ 1 | $ 23 | $ 3 | $ 53 |
Post-Modification Unpaid Principal Balance | 1 | 22 | 4 | 52 |
Increase in Allowance at Modification | $ 0 | $ (2) | $ 0 | $ (1) |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 1 | |||
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 | |||
Second mortgage | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 5 | 35 | 26 | 68 |
Pre-Modification Unpaid Principal Balance | $ 0 | $ 1 | $ 1 | $ 3 |
Post-Modification Unpaid Principal Balance | 0 | 1 | 1 | 2 |
Increase in Allowance at Modification | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 1 | 1 | ||
TDRs that subsequently defaulted in previous 12 months, Unpaid Principal Balance | $ 0 | $ 0 | ||
TDRs that subsequently defaulted in previous 12 months, Increase in Allowance at Subsequent Default | $ 0 | $ 0 | ||
HELOC commitments | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 20 | 122 | 85 | 158 |
Pre-Modification Unpaid Principal Balance | $ 2 | $ 8 | $ 6 | $ 8 |
Post-Modification Unpaid Principal Balance | 2 | 7 | 5 | 7 |
Increase in Allowance at Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Other consumer | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 3 | 3 | ||
Pre-Modification Unpaid Principal Balance | $ 0 | $ 0 | ||
Post-Modification Unpaid Principal Balance | 0 | 0 | ||
Increase in Allowance at Modification | $ 0 | $ 0 | ||
Commercial and industrial | ||||
Troubled Debt Restructurings [Line Items] | ||||
Number of Accounts | loan | 1 | |||
Pre-Modification Unpaid Principal Balance | $ 2 | |||
Post-Modification Unpaid Principal Balance | 1 | |||
Increase in Allowance at Modification | $ 0 | |||
HELOC loans | ||||
Troubled Debt Restructurings [Line Items] | ||||
TDRs that subsequently defaulted in previous 12 months, Number of Accounts | loan | 4 | |||
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 |
Loans Held-for-Investment (Impa
Loans Held-for-Investment (Impaired Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | $ 3 | $ 3 | $ 25 | ||
With no related allowance recorded, unpaid principal balance | 3 | 3 | 22 | ||
With an allowance recorded, recorded investment | 73 | 73 | 96 | ||
With an allowance recorded, unpaid principal balance | 74 | 74 | 98 | ||
With an allowance recorded, related allowance | 16 | 16 | 20 | ||
Total recorded investment | 76 | 76 | 121 | ||
Total unpaid principal balance | 77 | 77 | 120 | ||
Average Recorded Investment | 80 | $ 149 | 95 | $ 243 | |
Interest Income Recognized | 1 | 1 | 2 | 3 | |
Residential first mortgage | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 2 | 2 | 20 | ||
With no related allowance recorded, unpaid principal balance | 2 | 2 | 20 | ||
With an allowance recorded, recorded investment | 41 | 41 | 65 | ||
With an allowance recorded, unpaid principal balance | 41 | 41 | 67 | ||
With an allowance recorded, related allowance | 6 | 6 | 12 | ||
Total recorded investment | 43 | 43 | 85 | ||
Total unpaid principal balance | 43 | 43 | 87 | ||
Average Recorded Investment | 47 | 116 | 60 | 210 | |
Interest Income Recognized | 0 | 1 | 1 | 2 | |
Second mortgage | |||||
Impaired Loans [Line Items] | |||||
With an allowance recorded, recorded investment | 26 | 26 | 28 | ||
With an allowance recorded, unpaid principal balance | 27 | 27 | 28 | ||
With an allowance recorded, related allowance | 7 | 7 | 6 | ||
Total recorded investment | 26 | 26 | 28 | ||
Total unpaid principal balance | 27 | 27 | 28 | ||
Average Recorded Investment | 27 | 31 | 27 | 31 | |
Interest Income Recognized | 1 | 0 | 1 | 1 | |
HELOC commitments | |||||
Impaired Loans [Line Items] | |||||
With an allowance recorded, recorded investment | 6 | 6 | 3 | ||
With an allowance recorded, unpaid principal balance | 6 | 6 | 3 | ||
With an allowance recorded, related allowance | 3 | 3 | 1 | ||
Total recorded investment | 6 | 6 | 3 | ||
Total unpaid principal balance | 6 | 6 | 3 | ||
Average Recorded Investment | 5 | 2 | 5 | 2 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial and industrial | |||||
Impaired Loans [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 1 | 1 | 5 | ||
With no related allowance recorded, unpaid principal balance | 1 | 1 | 2 | ||
With an allowance recorded, related allowance | 0 | 0 | 0 | ||
Total recorded investment | 1 | 1 | 5 | ||
Total unpaid principal balance | 1 | 1 | 2 | ||
Average Recorded Investment | 1 | 0 | 3 | 0 | |
Interest Income Recognized | 0 | $ 0 | 0 | $ 0 | |
Other consumer | |||||
Impaired Loans [Line Items] | |||||
With an allowance recorded, recorded investment | 0 | 0 | 0 | ||
With an allowance recorded, unpaid principal balance | 0 | 0 | 0 | ||
With an allowance recorded, related allowance | 0 | 0 | 1 | ||
Total recorded investment | 0 | 0 | 0 | ||
Total unpaid principal balance | $ 0 | $ 0 | $ 0 |
Loans Held-for-Investment (Cred
Loans Held-for-Investment (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | $ 5,734 | $ 6,241 |
Total loans | 5,822 | 6,352 |
Commercial real estate | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 976 | 814 |
Total loans | 976 | 814 |
Commercial real estate | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 934 | 766 |
Commercial real estate | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 38 | 42 |
Commercial real estate | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3 | 2 |
Commercial real estate | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 1 | 4 |
Commercial and industrial | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 615 | 552 |
Total loans | 615 | 552 |
Commercial and industrial | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 562 | 492 |
Commercial and industrial | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 20 | 30 |
Commercial and industrial | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 32 | 21 |
Commercial and industrial | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 1 | 9 |
Warehouse lending | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 1,651 | 1,336 |
Total loans | 1,651 | 1,336 |
Warehouse lending | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 1,505 | 1,181 |
Warehouse lending | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 146 | 155 |
Warehouse lending | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Warehouse lending | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Commercial loans | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3,242 | 2,702 |
Total loans | 3,242 | 2,702 |
Commercial loans | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3,001 | 2,439 |
Commercial loans | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 204 | 227 |
Commercial loans | Special mention | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 35 | 23 |
Commercial loans | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2 | 13 |
Residential first mortgage | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,070 | 3,094 |
Total loans | 2,075 | 3,100 |
Residential first mortgage | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,019 | 2,993 |
Residential first mortgage | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 21 | 49 |
Residential first mortgage | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 35 | 58 |
Second mortgage | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 88 | 93 |
Total loans | 127 | 135 |
Second mortgage | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 93 | 101 |
Second mortgage | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 31 | 32 |
Second mortgage | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 3 | 2 |
HELOC commitments | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 302 | 321 |
Total loans | 346 | 384 |
HELOC commitments | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 315 | 353 |
HELOC commitments | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 22 | 22 |
HELOC commitments | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 9 | 9 |
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 | 2,580 | 3,650 |
Consumer loans | Pass | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 2,459 | 3,478 |
Consumer loans | Watch | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | 74 | 103 |
Consumer loans | Substandard | ||
Loans held-for-investment [Line Items] | ||
Loans held-for-investment | $ 47 | $ 69 |
Variable Interest Entities (V59
Variable Interest Entities (VIEs) (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)loanentity | Dec. 31, 2015USD ($)loan | |
HELOC Securitizations | ||
Private-label Securitizations [Line Items] | ||
Payments for Legal Settlements | $ 52 | |
FSTAR 2007-1 Mortgage Securitization | ||
Private-label Securitizations [Line Items] | ||
Number of unconsolidated VIEs | entity | 1 | |
Number of mortgage securitization trust loans | loan | 2,762 | 3,061 |
Aggregate principal balance | $ 103 | $ 117 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | $ 296 | |||
Changes in fair value due to | ||||
Fair value of MSRs at end of period | $ 301 | 301 | ||
Residential first mortgage loans | ||||
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | 281 | $ 279 | 296 | $ 258 |
Additions from loans sold with servicing retained | 65 | 77 | 122 | 146 |
Reductions from sales | 0 | (49) | (24) | (71) |
Changes in fair value due to | ||||
Decrease in MSR due to pay-offs, pay-downs and run-off | (15) | (11) | (26) | (26) |
Changes in estimates of fair value | (30) | 21 | (67) | 10 |
Fair value of MSRs at end of period | $ 301 | $ 317 | $ 301 | $ 317 |
Mortgage Servicing Rights (Sche
Mortgage Servicing Rights (Schedule of Sensitivity Analysis of Fair Value) (Details) - Mortgage servicing rights $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)$ / loan | Dec. 31, 2015USD ($)$ / loan | |
Servicing Assets at Fair Value [Line Items] | ||
Option adjusted spread, Actual (as a percent) | 8.37% | 8.24% |
Option adjusted spread, Decline in fair value due to 10% adverse change | $ 293 | $ 287 |
Option adjusted spread, Decline in fair value due to 20% adverse change | $ 285 | $ 279 |
Constant prepayment rate, Actual (as a percent) | 16.38% | 12.63% |
Constant prepayment rate, Decline in fair value due to 10% adverse change | $ 287 | $ 285 |
Constant prepayment rate, Decline in fair value due to 20% adverse change | $ 274 | $ 275 |
Weighted average cost to service per loan, Actual (in usd per loan) | $ / loan | 70.99 | 71.86 |
Weighted average cost to service per loan, Decline in fair value due to 10% adverse change | $ 297 | $ 292 |
Weighted average cost to service per loan, Decline in fair value due to 20% adverse change | $ 293 | $ 288 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Servicing Assets at Fair Value [Line Items] | ||||
Net gain (loss) return on mortgage servicing rights | $ (4) | $ 9 | $ (10) | $ 7 |
Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Total (loss) return, included in net return on mortgage servicing rights | (4) | 9 | (10) | 7 |
Mortgage servicing rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Net gain (loss) return on mortgage servicing rights | 2 | 2 | ||
Net (loss) return on mortgage servicing rights | Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sub servicing/Servicing fees, ancillary income and late fees | 21 | 17 | 38 | 34 |
Changes in fair value | (45) | 12 | (93) | (14) |
Gain on MSR derivatives | 19 | (14) | 45 | (5) |
Net transaction costs | 1 | (6) | 0 | (8) |
Net Loan Administration Income | Residential first mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sub servicing/Servicing fees, ancillary income and late fees | 7 | 9 | 14 | 16 |
Other servicing charges | (3) | (2) | (4) | (5) |
Total income, included in loan administration | $ 4 | $ 7 | $ 10 | $ 11 |
Derivative Financial Instrume63
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Unrealized losses on derivatives recorded in AOCI | $ (19) | $ 2 |
Estimated amount to be reclassified from OCI into earnings during next 12 months | (8) | |
Right to reclaim cash | 116 | 41 |
Obligation to Return Cash | 19 | 14 |
Cash Flow Hedges | ||
Derivative [Line Items] | ||
Unrealized losses on derivatives recorded in AOCI | $ (40) | $ (3) |
Derivative Financial Instrume64
Derivative Financial Instruments (Schedule of Unrealized Gains or Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | $ 12 | $ (5) | $ 46 | $ 15 |
U.S. Treasury, swap and euro dollar futures | Net (loss) return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 1 | (3) | 4 | 3 |
Interest rate swaps | Net (loss) return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 13 | (8) | 28 | (8) |
Interest rate swaps | Other noninterest income | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | (1) | 0 | 1 | 0 |
Mortgage backed securities forwards | Net (loss) return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | 5 | (3) | 13 | 0 |
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 | (6) | 10 | (1) | 20 |
Rate lock commitments | Other noninterest income | ||||
Derivative [Line Items] | ||||
Net gain (loss) recognized in income on derivative instruments | $ 0 | $ (1) | $ 1 | $ 0 |
Derivative Financial Instrume65
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | $ 14,513 | $ 4,013 |
Derivative liability, Fair Value | 79 | 14 |
Derivatives designated as hedging instruments | Interest rate swaps on FHLB advances | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 2 | |
Derivative liability, Fair Value | 56 | 4 |
Derivatives designated as hedging instruments | Other assets | Interest rate swaps on FHLB advances | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 250 | |
Derivative asset, Fair Value | 2 | |
Derivatives designated as hedging instruments | Other liabilities | Interest rate swaps on FHLB advances | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 825 | 825 |
Derivative liability, Fair Value | 56 | 4 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 95 | 32 |
Derivative liability, Fair Value | 79 | 14 |
Derivatives not designated as hedging instruments | U.S. Treasury, swap and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 3 | |
Derivative liability, Fair Value | 3 | 1 |
Derivatives not designated as hedging instruments | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 4 | 7 |
Derivative liability, Fair Value | 58 | 6 |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Derivative [Line Items] | ||
Derivative asset, Fair Value | 88 | 25 |
Derivative liability, Fair Value | 18 | 7 |
Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 9,859 | 8,970 |
Derivative asset, Fair Value | 178 | 58 |
Derivatives not designated as hedging instruments | Other assets | U.S. Treasury, swap and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 749 | 1,892 |
Derivative asset, Fair Value | 3 | 0 |
Derivatives not designated as hedging instruments | Other assets | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 468 | 1,931 |
Derivative asset, Fair Value | 4 | 7 |
Derivatives not designated as hedging instruments | Other assets | Rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 6,305 | 3,593 |
Derivative asset, Fair Value | 83 | 26 |
Derivatives not designated as hedging instruments | Other assets | Interest rate swaps and swaptions | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | 2,337 | 1,554 |
Derivative asset, Fair Value | 88 | 25 |
Derivatives not designated as hedging instruments | Other liabilities | U.S. Treasury, swap and euro dollar futures | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 7,903 | 768 |
Derivative liability, Fair Value | 3 | 1 |
Derivatives not designated as hedging instruments | Other liabilities | Mortgage backed securities forwards | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 6,054 | 2,655 |
Derivative liability, Fair Value | 58 | 6 |
Derivatives not designated as hedging instruments | Other liabilities | Rate lock commitments | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 46 | 168 |
Derivative liability, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Other liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 510 | 422 |
Derivative liability, Fair Value | $ 18 | $ 7 |
Derivative Financial Instrume66
Derivative Financial Instruments (Master Netting Schedule) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Asset [Abstract] | ||
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | $ 19 | $ 14 |
Derivative Liability [Abstract] | ||
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 116 | 41 |
Central Counterparty Clearing House | ||
Derivative Liability [Abstract] | ||
Additional funds pledged | 32 | 7 |
Derivatives designated as hedging instruments | Interest rate swaps on FHLB advances | ||
Derivative Asset [Abstract] | ||
Gross Amount | 2 | |
Gross Amounts Netted in the Statement of Financial Position | 2 | |
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 | 0 | |
Derivative Liability [Abstract] | ||
Gross Amount | 56 | 4 |
Gross Amounts Netted in the Statement of Financial Position | 2 | 0 |
Net Amount Presented in the Statement of Financial Position | 54 | 4 |
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 | 19 |
Derivatives not designated as hedging instruments | ||
Derivative Asset [Abstract] | ||
Gross Amount | 95 | 32 |
Gross Amounts Netted in the Statement of Financial Position | 3 | 0 |
Net Amount Presented in the Statement of Financial Position | 92 | 32 |
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 | 19 | 14 |
Derivative Liability [Abstract] | ||
Gross Amount | 79 | 14 |
Gross Amounts Netted in the Statement of Financial Position | 3 | 0 |
Net Amount Presented in the Statement of Financial Position | 76 | 14 |
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 | 81 | 22 |
Derivatives not designated as hedging instruments | U.S. Treasury, swap and euro dollar futures | ||
Derivative Asset [Abstract] | ||
Gross Amount | 3 | |
Gross Amounts Netted in the Statement of Financial Position | 3 | |
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 | 0 | |
Derivative Liability [Abstract] | ||
Gross Amount | 3 | 1 |
Gross Amounts Netted in the Statement of Financial Position | 3 | 0 |
Net Amount Presented in the Statement of Financial Position | 0 | 1 |
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 | 5 | 2 |
Derivatives not designated as hedging instruments | Mortgage backed securities forwards | ||
Derivative Asset [Abstract] | ||
Gross Amount | 4 | 7 |
Gross Amounts Netted in the Statement of Financial Position | 0 | 0 |
Net Amount Presented in the Statement of Financial Position | 4 | 7 |
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 | 0 | 4 |
Derivative Liability [Abstract] | ||
Gross Amount | 58 | 6 |
Gross Amounts Netted in the Statement of Financial Position | 0 | 0 |
Net Amount Presented in the Statement of Financial Position | 58 | 6 |
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 | 62 | 8 |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Derivative Asset [Abstract] | ||
Gross Amount | 88 | 25 |
Gross Amounts Netted in the Statement of Financial Position | 0 | 0 |
Net Amount Presented in the Statement of Financial Position | 88 | 25 |
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 | 19 | 10 |
Derivative Liability [Abstract] | ||
Gross Amount | 18 | 7 |
Gross Amounts Netted in the Statement of Financial Position | 0 | 0 |
Net Amount Presented in the Statement of Financial Position | 18 | 7 |
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 | $ 14 | $ 12 |
Debt (FHLB Advances) (Details)
Debt (FHLB Advances) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term Debt | $ 1,069 | $ 2,116 |
Federal Home Loan Bank advances | $ 2,646 | $ 3,541 |
Federal Home Loan Bank Advances, Rate (as a percent) | 0.77% | 0.59% |
Current portion of fixed rate advances | $ 1,577 | $ 1,425 |
Short-term adjustable rate | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term Debt | $ 1 | $ 0 |
Short-term Debt, Rate (as a percent) | 0.70% | 0.00% |
Short-term fixed rate term advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,068 | $ 2,116 |
Federal Home Loan Bank Advances, Rate (as a percent) | 0.40% | 0.32% |
Long-term LIBOR adjustable advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,025 | $ 825 |
Federal Home Loan Bank Advances, Rate (as a percent) | 0.80% | 0.70% |
Long-term fixed rate advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 552 | $ 600 |
Federal Home Loan Bank Advances, Rate (as a percent) | 1.44% | 1.37% |
Long-term fixed rate advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Current portion of fixed rate advances | $ 125 | $ 175 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2015 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
FHLB line of credit, maximum amount available | $ 7,000 | |
FHLB line of credit, available collateral amount | 2,600 | |
FHLB advances, line of credit | 900 | |
Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
FHLB line of credit, available collateral amount | $ 1,000 | |
Debt instrument, variable interest rate, term | 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 Advances | ||
Debt Instrument [Line Items] | ||
Payments for Federal Home Loan Bank Advances | $ 375 | |
Gains (Losses) on Extinguishment of Debt | $ 3 |
Debt (Schedule of FHLB Advances
Debt (Schedule of FHLB Advances, Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||||
Maximum outstanding at any month end | $ 2,646 | $ 2,198 | $ 3,557 | $ 2,198 |
Average outstanding balance | 2,460 | 1,828 | 2,841 | 1,497 |
Average remaining borrowing capacity | $ 983 | $ 1,503 | $ 843 | $ 1,697 |
Weighted average interest rate (as a percent) | 1.42% | 0.90% | 1.25% | 0.97% |
Debt (Schedule of FHLB, Advance
Debt (Schedule of FHLB, Advances, Maturity Summary) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 1,194 | |
2,017 | 50 | |
2,018 | 125 | |
2,019 | 0 | |
Thereafter | 1,277 | |
Total | $ 2,646 | $ 3,541 |
(Trust Preferred Securities) (D
(Trust Preferred Securities) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)subsidiary | Dec. 31, 2015USD ($) | |
Trust Preferred Securities [Abstract] | ||
Number of trust subsidiaries | subsidiary | 9 | |
Maximum period for interest payment deferment (in quarters) | 60 months | |
Trust Preferred Securities, Accrued Interest | $ 31 | |
Long-term debt, par value | $ 247 | $ 247 |
Junior Subordinated Debt | ||
Trust Preferred Securities [Abstract] | ||
Current Period for Interest Payment Deferment (in Quarters) | 54 months | |
3ML plus 3.25% maturing 2032 | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.89% | 3.85% |
3ML plus 3.25% maturing 2033 A | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.88% | 3.57% |
3ML plus 3.25% maturing 2033 B | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 3.25% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 3.88% | 3.85% |
3ML plus 2.00% maturing 2035 A | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 2.00% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 2.63% | 2.32% |
3ML plus 2.00% maturing 2035 B | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 2.00% | |
Junior subordinated notes | $ 26 | $ 26 |
Interest rate | 2.63% | 2.32% |
3ML plus 1.75% maturing 2035 | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 1.75% | |
Junior subordinated notes | $ 51 | $ 51 |
Interest rate | 2.40% | 2.26% |
3ML plus 1.50% maturing 2035 | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 1.50% | |
Junior subordinated notes | $ 25 | $ 25 |
Interest rate | 2.13% | 1.82% |
3ML plus 1.45% maturing 2037 | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 1.45% | |
Junior subordinated notes | $ 25 | $ 25 |
Interest rate | 2.10% | 1.96% |
3ML plus 2.50% maturing 2037 | ||
Trust Preferred Securities [Abstract] | ||
Interest rate | 2.50% | |
Junior subordinated notes | $ 16 | $ 16 |
Interest rate | 3.15% | 3.01% |
Representation and Warranty R72
Representation and Warranty Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Representation and Warranty Reserve [Roll Forward] | ||||
Balance, beginning of period | $ 40 | $ 53 | $ 40 | $ 53 |
Charged to gain on sale for current loan sales | 1 | 2 | 3 | 4 |
Charged to representation and warranty benefit | (4) | (5) | (6) | (7) |
Total | (3) | (3) | (3) | (3) |
Charge-offs, net | (1) | (2) | (1) | 2 |
Balance, end of period | $ 36 | $ 48 | $ 36 | $ 48 |
Warrants (Details)
Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jan. 30, 2009 | |
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in usd per share) | $ 10 | ||
Preferred Stock, Shares Sold (in shares) | 266,657 | 266,657 | |
Series C Preferred Stock | |||
Class of Warrant or Right [Line Items] | |||
Preferred Stock, Shares Sold (in shares) | 266,657 | 266,657 | |
Preferred stock, total exercise price of warrant | $ 267 | ||
Preferred stock, dividend rate per annum (as a percent) | 9.00% | ||
May Investors | |||
Class of Warrant or Right [Line Items] | |||
Warrants exercised (in shares) | 0 | ||
Warrants outstanding (in shares) | 615,962 | ||
Exercise price of warrants (in usd per share) | $ 10 | ||
Liability from warrants | $ 9 | $ 8 | |
Troubled Asset Relief Program | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in usd per share) | $ 62 | ||
Number of shares auctioned by warrants | 645,138 |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive income (loss) | |||
Beginning balance | $ 1,529 | ||
Ending balance | 1,599 | ||
Balance | 1,529 | $ 1,451 | $ 1,373 |
Cash Flow Hedges | |||
Accumulated other comprehensive income (loss) | |||
Beginning balance | (3) | ||
Net unrealized loss, net of tax | (44) | ||
Reclassifications out of AOCI | 7 | ||
Ending balance | (40) | ||
Balance | (3) | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Beginning balance | 2 | ||
Net unrealized loss, net of tax | (28) | ||
Reclassifications out of AOCI | 7 | ||
Ending balance | (19) | ||
Balance | 2 | 8 | 8 |
Held-to-Maturity Securities | Securities | |||
Accumulated other comprehensive income (loss) | |||
Beginning balance | 5 | ||
Net unrealized loss, net of tax | 0 | ||
Reclassifications out of AOCI | (1) | ||
Ending balance | 4 | ||
Balance | 5 | 0 | 0 |
Available-for-Sale Securities | Securities | |||
Accumulated other comprehensive income (loss) | |||
Beginning balance | 0 | ||
Net unrealized loss, net of tax | 16 | ||
Reclassifications out of AOCI | 1 | ||
Ending balance | 17 | ||
Balance | $ 0 | $ 8 | $ 8 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jan. 30, 2009 | |
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 | |
Shares Outstanding (in shares) | 266,657 | 266,657 | |
Preferred stock, dividends payable | $ 102 | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Rate (as a percent) | 9.00% | ||
Shares Outstanding (in shares) | 266,657 | 266,657 | |
Preferred Shares | $ 267 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 47 | $ 46 | $ 86 | $ 78 | |
Deferred cumulative preferred stock dividends | (8) | (7) | (16) | (15) | |
Net income applicable to common stock | $ 39 | $ 39 | $ 70 | $ 63 | |
Weighted average shares | |||||
Weighted average common shares outstanding | 56,574,796 | 56,436,026 | 56,544,256 | 56,410,880 | |
Effect of dilutive securities | |||||
May Investor warrants (in shares) | 349,539 | 299,391 | 327,307 | 266,118 | |
Stock-based awards (in shares) | 826,895 | 429,655 | 751,518 | 294,135 | |
Weighted average diluted common shares | 57,751,230 | 57,165,072 | 57,623,081 | 56,971,133 | |
Earnings per common share | |||||
Basic earnings per common share (in usd per share) | $ 0.67 | $ 0.69 | $ 1.23 | $ 1.12 | |
Effect of dilutive securities | |||||
Stock-based awards (in usd per share) | (0.01) | (0.01) | (0.02) | (0.01) | |
Diluted (loss) earnings per share (in usd per share) | 0.66 | $ 0.68 | 1.21 | $ 1.11 | |
Exercise price of warrants (in usd per share) | 10 | 10 | |||
May Investors | |||||
Effect of dilutive securities | |||||
Exercise price of warrants (in usd per share) | $ 10 | $ 10 | |||
Liability from warrants | $ 9 | $ 9 | $ 8 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Arrearage on dividend payments | $ 102 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 22 | $ 28 | $ 43 | $ 46 |
Effective tax provision rate (as a percent) | 32.70% | 37.20% | 33.40% | 37.00% |
Unrecognized tax benefits, recognition period (in months) | 12 months |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tangible capital (to tangible assets), Actual, Amount | $ 1,514 | $ 1,435 |
Tangible capital (to tangible assets), Actual, Ratio | 11.59% | 11.51% |
Tier 1 capital (to adjusted tangible assets), Actual, Amount | $ 1,514 | $ 1,435 |
Tier 1 capital (to adjusted tangible assets), Actual, Ratio (as a percent) | 11.59% | 11.51% |
Tier 1 capital (to adjusted tangible assets), For Capital Adequacy Purposes, Amount | $ 523 | $ 499 |
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 | $ 653 | $ 624 |
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 | $ 1,086 | $ 1,065 |
Common equity Tier 1 capital (to RWA), Actual, Ratio (as a percent) | 13.55% | 14.09% |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Amount | $ 361 | $ 340 |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Ratio (as a percent) | 4.50% | 4.50% |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Amount | $ 521 | $ 491 |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 1,514 | $ 1,435 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio (as a percent) | 18.89% | 18.98% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 481 | $ 454 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 642 | $ 605 |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Actual, Amount | $ 1,618 | $ 1,534 |
Total capital (to risk-weighted assets), Actual, Ratio (as a percent) | 20.19% | 20.28% |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 642 | $ 605 |
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 | $ 802 | $ 756 |
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 | $ 1,576 | $ 1,472 |
Tangible capital (to tangible assets), Actual, Ratio | 12.03% | 11.79% |
Tier 1 capital (to adjusted tangible assets), Actual, Amount | $ 1,576 | $ 1,472 |
Tier 1 capital (to adjusted tangible assets), Actual, Ratio (as a percent) | 12.03% | 11.79% |
Tier 1 capital (to adjusted tangible assets), For Capital Adequacy Purposes, Amount | $ 524 | $ 500 |
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 | $ 655 | $ 625 |
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 | $ 1,576 | $ 1,472 |
Common equity Tier 1 capital (to RWA), Actual, Ratio (as a percent) | 19.58% | 19.42% |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Amount | $ 362 | $ 341 |
Common equity Tier 1 capital (to RWA), Required for Capital Adequacy, Ratio (as a percent) | 4.50% | 4.50% |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Amount | $ 524 | $ 493 |
Common equity Tier 1 capital (to RWA), Required to Be Well Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 1,576 | $ 1,472 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio (as a percent) | 19.58% | 19.42% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 483 | $ 455 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 644 | $ 607 |
Tier 1 capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Actual, Amount | $ 1,679 | $ 1,570 |
Total capital (to risk-weighted assets), Actual, Ratio (as a percent) | 20.86% | 20.71% |
Total capital (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 644 | $ 607 |
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 | $ 806 | $ 758 |
Total capital (to risk-weighted assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Legal Proceedings, Contingenc80
Legal Proceedings, Contingencies and Commitments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Accrued reserve for contingent liabilities | $ 9 | $ 2 |
Letter of Credit, reserve amount | 3 | 2 |
Mortgage loans interest-rate lock commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 6,398 | 3,792 |
HELOC commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 161 | 150 |
Other consumer commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 33 | 22 |
Warehouse loan commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 779 | 871 |
Standby and commercial letters of credit | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 18 | 13 |
Commercial and industrial | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 157 | 151 |
Other commercial commitments | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 723 | 497 |
DOJ Agreement | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, initial payment | 15 | |
Litigation settlement payment amount | $ 118 | |
Fair Value Inputs, Discount Rate | 6.90% | |
Litigation Settlement Liability | $ 84 | $ 84 |
Bank | ||
Loss Contingencies [Line Items] | ||
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Bank | DOJ Agreement | ||
Loss Contingencies [Line Items] | ||
Tier 1 capital (to adjusted tangible assets), Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 11.00% | |
Additional payments | DOJ Agreement | ||
Loss Contingencies [Line Items] | ||
Litigation settlement payment amount | $ (118) | |
Annual payments (up to) | $ 25 | |
Litigation Settlement, Terms (less than) | 33.30% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | $ 1,145 | $ 1,294 |
Loans held-for-sale | 3,071 | 2,541 |
Loans held-for-investment | 88 | 111 |
Mortgage servicing rights | 301 | 296 |
Total assets at fair value | 3,159 | 2,652 |
Agency - Commercial | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 640 | 766 |
Agency - Residential | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 473 | 514 |
Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 32 | 14 |
Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 1,145 | 1,294 |
Loans held-for-sale | 3,094 | 2,578 |
Loans held-for-investment | 5,640 | 6,121 |
Mortgage servicing rights | 301 | 296 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | (9) | (8) |
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 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 1,145 | |
Level 2 | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 1,294 | |
Loans held-for-sale | 3,094 | 2,578 |
Loans held-for-investment | 6 | 6 |
Mortgage servicing rights | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | (9) | (8) |
Level 3 | 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 | 5,634 | 6,115 |
Mortgage servicing rights | 301 | 296 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liabilities | 0 | 0 |
Recurring | Total Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 301 | 296 |
Derivative assets | 178 | 58 |
Total assets at fair value | 4,783 | 4,301 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (133) | (18) |
Warrant liabilities | (9) | (8) |
DOJ litigation settlement | (84) | (84) |
Total liabilities at fair value | (226) | (110) |
Recurring | Total Fair Value | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 3,071 | 2,541 |
Loans held-for-investment | 6 | 6 |
Recurring | Total Fair Value | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 38 | 42 |
Recurring | Total Fair Value | Agency - Commercial | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 640 | 766 |
Recurring | Total Fair Value | Agency - Residential | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 473 | 514 |
Recurring | Total Fair Value | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 32 | 14 |
Recurring | Total Fair Value | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 44 | 64 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage servicing rights | 0 | 0 |
Derivative assets | 3 | 0 |
Total assets at fair value | 3 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (3) | (1) |
Warrant liabilities | 0 | 0 |
DOJ litigation settlement | 0 | 0 |
Total liabilities at fair value | (3) | (1) |
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 - Commercial | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Agency - Residential | ||
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 | 92 | 32 |
Total assets at fair value | 4,314 | 3,873 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | (130) | (17) |
Warrant liabilities | (9) | (8) |
DOJ litigation settlement | 0 | 0 |
Total liabilities at fair value | (139) | (25) |
Recurring | Level 2 | Residential first mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-sale | 3,071 | 2,541 |
Loans held-for-investment | 6 | 6 |
Recurring | Level 2 | Second mortgage | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 2 | Agency - Commercial | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 640 | 766 |
Recurring | Level 2 | Agency - Residential | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 473 | 514 |
Recurring | Level 2 | Municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 32 | 14 |
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 | 301 | 296 |
Derivative assets | 83 | 26 |
Total assets at fair value | 466 | 428 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Warrant liabilities | 0 | 0 |
DOJ litigation settlement | (84) | (84) |
Total liabilities at fair value | (84) | (84) |
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 | 38 | 42 |
Recurring | Level 3 | Agency - Commercial | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Agency - Residential | ||
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 | 0 |
Recurring | Level 3 | HELOC loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Loans held-for-investment | $ 44 | $ 64 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
HELOC loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FICO Score | 444 | |
HELOC loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FICO Score | 817 | |
HELOC loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FICO Score | 665 | |
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 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Using Significant Unobservable Inputs) (Details) - Recurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | $ 376 | $ 542 | $ 402 | $ 545 |
Total unrealized gains/(losses) recorded in earnings | (47) | 10 | (94) | (20) |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 1 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 64 | 77 | 121 | 146 |
Sales | 0 | (49) | (24) | (71) |
Settlements | (10) | (22) | (22) | (43) |
Balance at End of Period | 383 | 558 | 383 | 558 |
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (152) | (166) | ||
Total unrealized gains/(losses) recorded in earnings | (2) | (2) | ||
Total realized gains/(losses) recorded in earnings | (1) | (3) | ||
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | ||
Purchases / Originations | 0 | 0 | ||
Sales | 24 | 24 | ||
Settlements | 11 | 27 | ||
Balance at End of Period | (120) | (120) | ||
Rate lock commitments | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 61 | 55 | 26 | 31 |
Total unrealized gains/(losses) recorded in earnings | 58 | (30) | 120 | 7 |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 106 | 93 | 187 | 191 |
Sales | (126) | (75) | (220) | (172) |
Settlements | (16) | (13) | (30) | (27) |
Balance at End of Period | 83 | 30 | 83 | 30 |
Long-term debt | ||||
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (70) | (84) | ||
Total unrealized gains/(losses) recorded in earnings | 0 | 0 | ||
Total realized gains/(losses) recorded in earnings | (1) | (3) | ||
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | ||
Purchases / Originations | 0 | 0 | ||
Sales | 24 | 24 | ||
Settlements | 11 | 27 | ||
Balance at End of Period | (36) | (36) | ||
DOJ litigation settlement | ||||
Liabilities, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | (84) | (82) | (84) | (82) |
Total unrealized gains/(losses) recorded in earnings | 0 | (2) | 0 | (2) |
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 |
Balance at End of Period | (84) | (84) | (84) | (84) |
Second mortgage loans | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 40 | 50 | 42 | 53 |
Total unrealized gains/(losses) recorded in earnings | 0 | 2 | 1 | 2 |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 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 | (2) | (4) | (5) | (8) |
Balance at End of Period | 38 | 48 | 38 | 48 |
HELOC loans | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 55 | 113 | 64 | 132 |
Total unrealized gains/(losses) recorded in earnings | (3) | (2) | (3) | (6) |
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 | (8) | (18) | (17) | (33) |
Balance at End of Period | 44 | 93 | 44 | 93 |
Mortgage servicing rights | ||||
Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at Beginning of Period | 281 | 279 | 296 | 258 |
Total unrealized gains/(losses) recorded in earnings | (44) | 10 | (92) | (16) |
Total realized gains/(losses) recorded in earnings | 0 | 0 | 0 | 0 |
Total unrealized gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Purchases / Originations | 64 | 77 | 121 | 146 |
Sales | 0 | (49) | (24) | (71) |
Settlements | 0 | 0 | 0 | 0 |
Balance at End of Period | $ 301 | 317 | $ 301 | 317 |
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 | ||
Balance at End of Period | 100 | 100 | ||
Municipal obligation | ||||
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) | |||
Balance at End of Period | $ 0 | $ 0 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Quantitative Information) (Details) - Level 3 - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Mortgage servicing rights | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Constant prepayment rate (as a percent) | 16.40% | 12.60% | ||||
Recurring | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 383 | $ 402 | $ 376 | $ 558 | $ 542 | $ 545 |
Fair value, Liabilities | (120) | (152) | (166) | |||
Recurring | Rate lock commitments | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | 83 | 26 | 61 | 30 | 55 | 31 |
Recurring | Litigation settlement | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | (84) | (84) | (84) | (84) | (82) | (82) |
Recurring | Second mortgage | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | 38 | 42 | 40 | 48 | 50 | 53 |
Recurring | Mortgage servicing rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | 301 | 296 | $ 281 | $ 317 | $ 279 | $ 258 |
Recurring | Discounted cash flows | Litigation settlement | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Liabilities | $ (84) | $ (84) | ||||
Recurring | Discounted cash flows | Litigation settlement | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 5.60% | 4.90% | ||||
Recurring | Discounted cash flows | Litigation settlement | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 8.30% | 9.50% | ||||
Recurring | Discounted cash flows | Litigation settlement | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 6.90% | 7.20% | ||||
Recurring | Discounted cash flows | Second mortgage | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 38 | $ 42 | ||||
Recurring | Discounted cash flows | Second mortgage | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 7.20% | 7.20% | ||||
Constant prepayment rate (as a percent) | 10.90% | 13.50% | ||||
CDR rate (as a percent) | 2.70% | 2.60% | ||||
Recurring | Discounted cash flows | Second mortgage | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.80% | 10.80% | ||||
Constant prepayment rate (as a percent) | 16.40% | 20.20% | ||||
CDR rate (as a percent) | 4.10% | 4.00% | ||||
Recurring | Discounted cash flows | Second mortgage | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 9.00% | 9.00% | ||||
Constant prepayment rate (as a percent) | 13.60% | 16.90% | ||||
CDR rate (as a percent) | 3.40% | 3.30% | ||||
Recurring | Discounted cash flows | HELOC loans | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 44 | $ 64 | ||||
Recurring | Discounted cash flows | HELOC loans | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 7.80% | 6.80% | ||||
Recurring | Discounted cash flows | HELOC loans | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 11.70% | 10.10% | ||||
Recurring | Discounted cash flows | HELOC loans | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 9.70% | 8.40% | ||||
Recurring | Discounted cash flows | Mortgage servicing rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 301 | $ 296 | ||||
Recurring | Discounted cash flows | Mortgage servicing rights | Lower range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 6.70% | 6.60% | ||||
Constant prepayment rate (as a percent) | 13.40% | 10.30% | ||||
Weighted average cost to service per loan | $ 57 | $ 57 | ||||
Recurring | Discounted cash flows | Mortgage servicing rights | Upper range | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 10.10% | 9.90% | ||||
Constant prepayment rate (as a percent) | 19.30% | 14.80% | ||||
Weighted average cost to service per loan | $ 85 | $ 86 | ||||
Recurring | Discounted cash flows | Mortgage servicing rights | Weighted Average | ||||||
Fair Value Inputs [Abstract] | ||||||
Discount rate (as a percent) | 8.40% | 8.20% | ||||
Constant prepayment rate (as a percent) | 16.40% | 12.60% | ||||
Weighted average cost to service per loan | $ 71 | $ 72 | ||||
Recurring | Consensus pricing | Rate lock commitments | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value, Assets | $ 83 | $ 26 | ||||
Recurring | Consensus pricing | Lower range | Rate lock commitments | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 65.50% | 67.60% | ||||
Recurring | Consensus pricing | Upper range | Rate lock commitments | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 98.30% | 101.50% | ||||
Recurring | Consensus pricing | Weighted Average | Rate lock commitments | ||||||
Fair Value Inputs [Abstract] | ||||||
Origination pull-through rate (as a percent) | 81.90% | 84.60% |
Fair Value Measurements (Fair85
Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Disclosures) (Details) - Level 3 - Weighted Average | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Residential Mortgage Servicing Rights Capitalized | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Weighted average life (in years) | 7 years 15 days | 8 years 4 months 15 days | 7 years 15 days | 7 years 10 months 15 days | |
Weighted-average constant prepayment rate (as a percent) | 13.30% | 9.30% | 13.50% | 11.40% | |
Weighted average option adjusted spread (as a percent) | 8.90% | 8.70% | 8.20% | 8.60% | |
Mortgage servicing rights | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Weighted average life (in years) | 5 years 10 months 30 days | 7 years 3 months 18 days | |||
Weighted-average constant prepayment rate (as a percent) | 16.40% | 12.60% | |||
Weighted average option adjusted spread (as a percent) | 8.40% | 8.20% |
Fair Value Measurements (Asse86
Fair Value Measurements (Assets Measured at Fair Value on a Non-recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | $ 3,071 | $ 3,071 | $ 2,541 | ||
Total assets at fair value | 3,159 | 3,159 | 2,652 | ||
Net gain on loan sales | 90 | $ 83 | 165 | $ 174 | |
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 19 | 19 | 17 | ||
Total assets at fair value | 61 | 61 | 67 | ||
Fair value losses on repossessed assets | (3) | 0 | (2) | (1) | |
Net gain on loan sales | 0 | 1 | 1 | 1 | |
Nonrecurring | Interest income on loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value losses on loans (less than for $1 million) | (1) | (1) | (1) | (1) | |
Nonrecurring | Provision for loan losses | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value losses on loans (less than for $1 million) | (9) | $ (21) | (20) | $ (56) | |
Nonrecurring | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 16 | 16 | 8 | ||
Impaired loans held-for-investment | 25 | 25 | 40 | ||
Nonrecurring | Commercial and industrial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 1 | 1 | 2 | ||
Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 0 | 0 | 0 | ||
Total assets at fair value | 16 | 16 | 8 | ||
Nonrecurring | Level 2 | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 16 | 16 | 8 | ||
Impaired loans held-for-investment | 0 | 0 | 0 | ||
Nonrecurring | Level 2 | Commercial and industrial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 0 | 0 | 0 | ||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 19 | 19 | 17 | ||
Total assets at fair value | 45 | 45 | 59 | ||
Nonrecurring | Level 3 | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 0 | 0 | 0 | ||
Impaired loans held-for-investment | 25 | 25 | 40 | ||
Nonrecurring | Level 3 | Commercial and industrial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | $ 1 | $ 1 | $ 2 |
Fair Value Measurements (Asse87
Fair Value Measurements (Assets Measured on a Nonrecurring Basis, Level 3 Quantitative Information) (Details) - Nonrecurring - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Repossessed assets | $ 19 | $ 17 |
Residential first mortgage loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | 25 | 40 |
Commercial and industrial | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | 1 | 2 |
Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Repossessed assets | 19 | 17 |
Level 3 | Residential first mortgage loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | 25 | 40 |
Level 3 | Residential first mortgage loans | Fair value of underlying collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 25 | $ 40 |
Level 3 | Residential first mortgage loans | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 20.00% | 35.00% |
Level 3 | Residential first mortgage loans | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 25.00% | 45.00% |
Level 3 | Residential first mortgage loans | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 21.70% | 35.20% |
Level 3 | Commercial and industrial | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 1 | $ 2 |
Level 3 | Commercial and industrial | Fair value of underlying collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 1 | |
Level 3 | Commercial and industrial | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 50.00% | |
Level 3 | Commercial and industrial | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 55.00% | |
Level 3 | Commercial and industrial | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 53.60% | |
Level 3 | Commercial real estate | Fair value of underlying collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans held-for-investment | $ 2 | |
Level 3 | Commercial real estate | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 45.00% | |
Level 3 | Commercial real estate | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 55.00% | |
Level 3 | Commercial real estate | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 50.10% | |
Level 3 | Repossessed assets | Fair value of underlying collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Repossessed assets | $ 19 | $ 17 |
Level 3 | Repossessed assets | Fair value of underlying collateral | Lower range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 18.00% | 16.00% |
Level 3 | Repossessed assets | Fair value of underlying collateral | Upper range | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 99.00% | 100.00% |
Level 3 | Repossessed assets | Fair value of underlying collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (as a percent) | 58.40% | 48.70% |
Fair Value Measurements (Fair88
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Investment securities available-for-sale | $ 1,145 | $ 1,294 |
Investment securities held-to-maturity | 1,237 | 1,262 |
Loans held-for-sale | 3,071 | 2,541 |
Loans held-for-investment | 88 | 111 |
Mortgage servicing rights | 301 | 296 |
Level 2 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Investment securities available-for-sale | 1,145 | |
Carrying Value | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 184 | 208 |
Investment securities available-for-sale | 1,145 | 1,294 |
Investment securities held-to-maturity | 1,211 | 1,268 |
Loans held-for-sale | 3,091 | 2,576 |
Loans with government guarantees | 435 | 485 |
Loans held-for-investment | 5,672 | 6,165 |
Repossessed assets | 19 | 17 |
Federal Home Loan Bank stock | 172 | 170 |
Mortgage servicing rights | 301 | 296 |
Bank owned life insurance | 267 | 178 |
Other assets, foreclosure claims | 178 | 210 |
Derivative financial instruments, assets | 178 | 58 |
Federal Home Loan Bank advances | (2,646) | (3,541) |
Other long-term debt | (247) | (247) |
Warrant liabilities | (9) | (8) |
DOJ litigation settlement | (84) | (84) |
Derivative financial instruments, liabilities | (133) | (18) |
Carrying Value | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (5,071) | (5,008) |
Carrying Value | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,023) | (826) |
Carrying Value | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (974) | (1,062) |
Carrying Value | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,503) | (1,039) |
Estimated Fair Value | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 184 | 208 |
Investment securities available-for-sale | 1,145 | 1,294 |
Investment securities held-to-maturity | 1,237 | 1,262 |
Loans held-for-sale | 3,094 | 2,578 |
Loans with government guarantees | 422 | 469 |
Loans held-for-investment | 5,640 | 6,121 |
Repossessed assets | 19 | 17 |
Federal Home Loan Bank stock | 172 | 170 |
Mortgage servicing rights | 301 | 296 |
Bank owned life insurance | 267 | 178 |
Other assets, foreclosure claims | 178 | 210 |
Derivative financial instruments, assets | 178 | 58 |
Federal Home Loan Bank advances | (2,635) | (3,543) |
Other long-term debt | (77) | (89) |
Warrant liabilities | (9) | (8) |
DOJ litigation settlement | (84) | (84) |
Derivative financial instruments, liabilities | (133) | (18) |
Estimated Fair Value | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (4,863) | (4,744) |
Estimated Fair Value | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,038) | (833) |
Estimated Fair Value | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (962) | (1,045) |
Estimated Fair Value | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,459) | (947) |
Estimated Fair Value | Level 1 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 184 | 208 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 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 | 0 |
Mortgage servicing rights | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Other assets, foreclosure claims | 0 | 0 |
Derivative financial instruments, assets | 3 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Other long-term debt | 0 | 0 |
Warrant liabilities | 0 | 0 |
DOJ litigation settlement | 0 | 0 |
Derivative financial instruments, liabilities | (3) | (1) |
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 2 | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 1,294 | |
Investment securities held-to-maturity | 1,237 | 1,262 |
Loans held-for-sale | 3,094 | 2,578 |
Loans with government guarantees | 422 | 469 |
Loans held-for-investment | 6 | 6 |
Repossessed assets | 0 | 0 |
Federal Home Loan Bank stock | 172 | 170 |
Mortgage servicing rights | 0 | 0 |
Bank owned life insurance | 267 | 178 |
Other assets, foreclosure claims | 178 | 210 |
Derivative financial instruments, assets | 92 | 32 |
Federal Home Loan Bank advances | (2,635) | (3,543) |
Other long-term debt | (77) | (89) |
Warrant liabilities | (9) | (8) |
DOJ litigation settlement | 0 | 0 |
Derivative financial instruments, liabilities | (130) | (17) |
Estimated Fair Value | Level 2 | Demand deposits and savings accounts | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (4,863) | (4,744) |
Estimated Fair Value | Level 2 | Certificates of deposit | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,038) | (833) |
Estimated Fair Value | Level 2 | Government deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (962) | (1,045) |
Estimated Fair Value | Level 2 | Company controlled deposits | ||
Carrying and Fair Values of Financial Instruments [Abstract] | ||
Deposits | (1,459) | (947) |
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 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans with government guarantees | 0 | 0 |
Loans held-for-investment | 5,634 | 6,115 |
Repossessed assets | 19 | 17 |
Federal Home Loan Bank stock | 0 | 0 |
Mortgage servicing rights | 301 | 296 |
Bank owned life insurance | 0 | 0 |
Other assets, foreclosure claims | 0 | 0 |
Derivative financial instruments, assets | 83 | 26 |
Federal Home Loan Bank advances | 0 | 0 |
Other long-term debt | 0 | 0 |
Warrant liabilities | 0 | 0 |
DOJ litigation settlement | (84) | (84) |
Derivative financial instruments, liabilities | 0 | 0 |
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 |
Fair Value Measurements (Fair89
Fair Value Measurements (Fair Value Option Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | $ 3,034 | $ 3,034 | $ 2,585 | ||
Total assets at fair value | 3,159 | 3,159 | 2,652 | ||
Assets, fair value over/(under) UPB | 125 | 125 | 67 | ||
Litigation settlement | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Litigation settlement payment amount | (118) | ||||
Additional payments | Litigation settlement | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Litigation settlement payment amount | 118 | ||||
Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 2,922 | 2,922 | 2,452 | ||
Total assets at fair value | 3,071 | 3,071 | 2,541 | ||
Assets, fair value over/(under) UPB | 149 | 149 | 89 | ||
Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 112 | 112 | 133 | ||
Total assets at fair value | 88 | 88 | 111 | ||
Assets, fair value over/(under) UPB | (24) | (24) | (22) | ||
Litigation settlement | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Liabilities, unpaid principal balance | (118) | (118) | (118) | ||
Liabilities, fair value | (84) | (84) | (84) | ||
Liabilities, fair value over/(under) UPB | 34 | 34 | 34 | ||
Nonperforming | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 23 | 23 | 22 | ||
Total assets at fair value | 11 | 11 | 10 | ||
Assets, fair value over/(under) UPB | (12) | (12) | (12) | ||
Nonperforming | Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 1 | 1 | 1 | ||
Total assets at fair value | 1 | 1 | 0 | ||
Assets, fair value over/(under) UPB | 0 | 0 | (1) | ||
Nonperforming | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 22 | 22 | 21 | ||
Total assets at fair value | 10 | 10 | 10 | ||
Assets, fair value over/(under) UPB | (12) | (12) | (11) | ||
Performing | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 3,011 | 3,011 | 2,563 | ||
Total assets at fair value | 3,148 | 3,148 | 2,642 | ||
Assets, fair value over/(under) UPB | 137 | 137 | 79 | ||
Performing | Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 2,921 | 2,921 | 2,451 | ||
Total assets at fair value | 3,070 | 3,070 | 2,541 | ||
Assets, fair value over/(under) UPB | 149 | 149 | 90 | ||
Performing | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Assets, unpaid principal balance (UPB) | 90 | 90 | 112 | ||
Total assets at fair value | 78 | 78 | 101 | ||
Assets, fair value over/(under) UPB | (12) | (12) | $ (11) | ||
Net gain on loan sales | Loans held-for-sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 145 | $ 37 | 289 | $ 142 | |
Interest income on loans | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 2 | 4 | 2 | 7 | |
Other noninterest income | Loans held-for-investment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 0 | (25) | 0 | (34) | |
Other noninterest income | Long-term debt | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | 0 | (14) | 0 | (25) | |
Other noninterest expense | Litigation settlement | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Changes in fair value, gain (loss) | $ 0 | $ 3 | $ 0 | $ 2 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 4 | |||
Summary of Operations | ||||
Net interest income | $ 77 | $ 73 | $ 156 | $ 138 |
Net gain on loan sales | 90 | 83 | 165 | 174 |
Representation and warranty benefit | 4 | 5 | 6 | 7 |
Other noninterest income (loss) | 34 | 38 | 62 | 64 |
(Provision) benefit for loan losses | 3 | 13 | 16 | 17 |
Asset resolution | (1) | (5) | (4) | (13) |
Depreciation and amortization expense | (8) | (5) | (15) | (11) |
Other noninterest expense | (130) | (128) | (257) | (252) |
Total noninterest expense | (139) | (138) | (276) | (276) |
Income before income taxes | 69 | 74 | 129 | 124 |
Provision for income taxes | 22 | 28 | 43 | 46 |
Net income | 47 | 46 | 86 | 78 |
Average balances | ||||
Loans held-for-sale | 2,884 | 2,218 | 2,897 | 2,031 |
Loans with government guarantees | 444 | 630 | 460 | 747 |
Loans held-for-investment | 5,569 | 4,938 | 5,618 | 4,617 |
Total assets | 13,438 | 11,811 | 13,491 | 11,336 |
Deposits | 8,631 | 7,736 | 8,341 | 7,553 |
Mortgage Originations | ||||
Summary of Operations | ||||
Net interest income | 20 | 19 | 40 | 34 |
Net gain on loan sales | 87 | 87 | 156 | 183 |
Representation and warranty benefit | 4 | 5 | 6 | 7 |
Other noninterest income (loss) | 9 | 24 | 13 | 34 |
(Provision) 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 | (61) | (61) | (118) | (118) |
Total noninterest expense | (62) | (61) | (120) | (119) |
Income before income taxes | 58 | 74 | 95 | 139 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | 58 | 74 | 95 | 139 |
Average balances | ||||
Loans held-for-sale | 2,828 | 2,173 | 2,780 | 1,988 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 3 | 2 | 7 | 2 |
Total assets | 3,471 | 2,628 | 3,409 | 2,477 |
Deposits | 0 | 0 | 0 | 0 |
Mortgage Servicing | ||||
Summary of Operations | ||||
Net interest income | 7 | 4 | 13 | 7 |
Net gain on loan sales | 0 | 0 | 0 | 0 |
Representation and warranty benefit | 0 | 0 | 0 | 0 |
Other noninterest income (loss) | 13 | 14 | 26 | 27 |
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 |
Asset resolution | (1) | (5) | (4) | (12) |
Depreciation and amortization expense | (1) | 0 | (2) | (1) |
Other noninterest expense | (21) | (28) | (45) | (53) |
Total noninterest expense | (23) | (33) | (51) | (66) |
Income before income taxes | (3) | (15) | (12) | (32) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | (3) | (15) | (12) | (32) |
Average balances | ||||
Loans held-for-sale | 0 | 0 | 0 | 0 |
Loans with government guarantees | 444 | 630 | 460 | 747 |
Loans held-for-investment | 0 | 0 | 0 | 0 |
Total assets | 678 | 986 | 703 | 1,077 |
Deposits | 1,558 | 1,128 | 1,357 | 1,038 |
Community Banking | ||||
Summary of Operations | ||||
Net interest income | 49 | 42 | 96 | 81 |
Net gain on loan sales | 3 | (4) | 9 | (9) |
Representation and warranty benefit | 0 | 0 | 0 | 0 |
Other noninterest income (loss) | 6 | 1 | 13 | 8 |
(Provision) benefit for loan losses | 3 | 13 | 16 | 17 |
Asset resolution | 0 | 0 | 0 | (1) |
Depreciation and amortization expense | (2) | (2) | (4) | (3) |
Other noninterest expense | (45) | (37) | (88) | (77) |
Total noninterest expense | (47) | (39) | (92) | (81) |
Income before income taxes | 14 | 13 | 42 | 16 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | 14 | 13 | 42 | 16 |
Average balances | ||||
Loans held-for-sale | 56 | 45 | 117 | 43 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 5,566 | 4,831 | 5,611 | 4,500 |
Total assets | 5,653 | 4,803 | 5,745 | 4,457 |
Deposits | 7,073 | 6,608 | 6,984 | 6,515 |
Other | ||||
Summary of Operations | ||||
Net interest income | 1 | 8 | 7 | 16 |
Net gain on loan sales | 0 | 0 | 0 | 0 |
Representation and warranty benefit | 0 | 0 | 0 | 0 |
Other noninterest income (loss) | 6 | (1) | 10 | (5) |
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 |
Asset resolution | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | (4) | (3) | (7) | (6) |
Other noninterest expense | (3) | (2) | (6) | (4) |
Total noninterest expense | (7) | (5) | (13) | (10) |
Income before income taxes | 0 | 2 | 4 | 1 |
Provision for income taxes | 22 | 28 | 43 | 46 |
Net income | (22) | (26) | (39) | (45) |
Average balances | ||||
Loans held-for-sale | 0 | 0 | 0 | 0 |
Loans with government guarantees | 0 | 0 | 0 | 0 |
Loans held-for-investment | 0 | 105 | 0 | 115 |
Total assets | 3,636 | 3,394 | 3,634 | 3,325 |
Deposits | 0 | 0 | 0 | 0 |
Operating Segments | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 205 | 199 | 389 | 383 |
Operating Segments | Mortgage Originations | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 120 | 135 | 215 | 258 |
Operating Segments | Mortgage Servicing | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 20 | 18 | 39 | 34 |
Operating Segments | Community Banking | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 58 | 39 | 118 | 80 |
Operating Segments | Other | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 7 | 7 | 17 | 11 |
Intersegment Eliminations | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Mortgage Originations | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 1 | 12 | 2 | 19 |
Intersegment Eliminations | Mortgage Servicing | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 6 | (2) | 11 | 1 |
Intersegment Eliminations | Community Banking | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | 0 | (5) | (1) | (10) |
Intersegment Eliminations | Other | ||||
Summary of Operations | ||||
Total net interest income and noninterest income | $ (7) | $ (5) | $ (12) | $ (10) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jul. 14, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 11, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||
Long-term debt | $ 247 | $ 247 | ||||
Increase in other liabilities | 31 | $ 6 | ||||
Preferred units | $ 267 | $ 267 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Increase (decrease) in Long-term Debt | $ 245 | |||||
Increase in other liabilities | $ (34) | |||||
Preferred units | $ 267 | |||||
Increase (decrease) in stockholders' equity | (371) | |||||
Subsequent Event | Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Increase (decrease) in stockholders' equity | (267) | |||||
Subsequent Event | Additional Paid-in Capital | ||||||
Subsequent Event [Line Items] | ||||||
Increase (decrease) in stockholders' equity | $ (104) | |||||
Senior Notes | Debt Offering | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Long-term debt | $ 250 | |||||
Long-term debt, interest rate (as a percent) | 6.125% | |||||
Subordinated Debt | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Payment of trust preferred securities | $ 34 |