Flagstar Bancorp (FBC) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Nov. 08, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-16577
Entity Registrant Name	Flagstar Bancorp, Inc.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-3150651
Entity Address, Address Line One	5151 Corporate Drive,
Entity Address, City or Town	Troy,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48098-2639
City Area Code	248
Local Phone Number	312-2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common stock
Trading Symbol	FBC
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding (in shares)		52,564,331
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001033012

Consolidated Statements of Fina

Consolidated Statements of Financial Condition - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash	$ 194	$ 220
Interest-earning deposits	86	206
Total cash and cash equivalents	280	426
Investment securities available-for-sale	2,165	2,116
Investment securities held-to-maturity	440	598
Loans held-for-sale ($5,349 and $5,219 measured at fair value, respectively)	5,372	5,258
Loans held-for-investment ($14 and $12 measured at fair value, respectively)	16,476	12,129
Loans with government guarantees	2,500	736
Less: allowance for loan losses	(255)	(107)
Total loans held-for-investment and loans with government guarantees, net	18,721	12,758
Mortgage servicing rights	323	291
Federal Home Loan Bank stock	377	303
Premises and equipment, net	410	416
Goodwill and intangible assets	160	170
Other assets	1,228	930
Total assets	29,476	23,266
Liabilities and Stockholders’ Equity
Noninterest bearing deposits	9,429	5,467
Interest bearing deposits	10,516	9,679
Total deposits	19,945	15,146
Short-term Federal Home Loan Bank advances and other	2,226	4,165
Long-term Federal Home Loan Bank advances	1,200	650
Other long-term debt	493	496
Other liabilities ($35 and $35 measured at fair value, respectively)	3,417	1,021
Total liabilities	27,281	21,478
Stockholders’ Equity
Common stock $0.01 par value, 80,000,000 and 80,000,000 shares authorized; 57,150,470 and 56,631,236 shares issued and outstanding, respectively	1	1
Additional paid in capital	1,493	1,483
Accumulated other comprehensive income	46	1
Retained earnings	655	303
Total stockholders’ equity	2,195	1,788
Total liabilities and stockholders’ equity	29,476	23,266
Other liabilities, fair value	$ 35	$ 35

Consolidated Statements of Fi_2

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
Loans held-for-sale, fair value	$ 5,349	$ 5,219
Loans held-for-investment, fair value	14	12
Liabilities and Stockholders’ Equity
Other liabilities, fair value	$ 35	$ 35
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	80,000,000	80,000,000
Common stock, shares issued (in shares)	57,150,470	56,631,236
Common stock, shares outstanding (in shares)	57,150,470	56,631,236

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest Income
Loans	$ 190	$ 185	$ 551	$ 517
Investment securities	16	17	56	61
Interest-earning deposits and other	0	1	1	3
Total interest income	206	203	608	581
Interest Expense
Deposits	16	38	69	102
Short-term Federal Home Loan Bank advances and other	2	10	16	44
Long-term Federal Home Loan Bank advances	3	2	9	4
Other long-term debt	5	7	18	21
Total interest expense	26	57	112	171
Net interest income	180	146	496	410
Provision for credit losses	32	1	148	18
Net interest income after provision for credit losses	148	145	348	392
Noninterest Income
Net gain on loan sales	346	110	739	234
Loan fees and charges	45	29	112	70
Net return on mortgage servicing rights	12	(2)	10	9
Loan administration income	26	5	59	22
Deposit fees and charges	8	10	24	28
Other noninterest income	15	19	44	85
Total noninterest income	452	171	988	448
Noninterest Expense
Compensation and benefits	123	98	341	275
Occupancy and equipment	47	40	132	118
Commissions	72	38	162	76
Loan processing expense	24	22	69	60
Legal and professional expense	9	6	20	18
Federal insurance premiums	6	5	19	14
Intangible asset amortization	3	3	10	11
Other noninterest expense	21	26	84	71
Total noninterest expense	305	238	837	643
Income before income taxes	295	78	499	197
Provision for income taxes	73	15	115	37
Net income	$ 222	$ 63	$ 384	$ 160
Net income per share
Basic (in dollars per share)	$ 3.90	$ 1.12	$ 6.76	$ 2.83
Diluted (in dollars per share)	$ 3.88	$ 1.11	$ 6.71	$ 2.80
Weighted average shares outstanding
Basic (in shares)	57,032,746	56,484,499	56,827,171	56,607,944
Diluted (in shares)	57,379,809	57,110,796	57,231,689	57,252,540

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 222,000,000	$ 63,000,000	$ 384,000,000	$ 160,000,000
Other comprehensive income, net of tax
Investment securities	0	13,000,000	55,000,000	52,000,000
Derivatives and hedging activities	0	0	(10,000,000)	0
Other comprehensive income, net of tax	0	13,000,000	45,000,000	52,000,000
Comprehensive income	$ 222,000,000	$ 76,000,000	$ 429,000,000	$ 212,000,000

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions		Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2018				57,749,464
Beginning balance at Dec. 31, 2018		$ 1,570		$ 1	$ 1,522	$ (47)	$ 94
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		160					160
Total other comprehensive income		52				52
Shares issued from Employee Stock Purchase Plan (in shares)				84,036
Shares issued from the Employee Stock Purchase Plan		0
Bancorp Dividends Declared and paid (in shares)				280
Bancorp Dividends Declared and paid		(7)					(7)
Stock-based compensation (in shares)				194,266
Stock-based compensation		9			9
Repurchase of shares (in shares)	[1]			(1,517,705)
Repurchase of shares	[1]	(50)			(50)
Ending balance (in shares) at Sep. 30, 2019				56,510,341
Ending balance at Sep. 30, 2019		1,734		$ 1	1,481	5	247
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		63
Total other comprehensive income		13
Ending balance (in shares) at Sep. 30, 2019				56,510,341
Ending balance at Sep. 30, 2019		1,734		$ 1	1,481	5	247
Beginning balance (in shares) at Dec. 31, 2019				56,631,236
Beginning balance at Dec. 31, 2019		1,788	$ (23)	$ 1	1,483	1	303	$ (23)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		384					384
Total other comprehensive income		45				45
Shares issued from Employee Stock Purchase Plan (in shares)				149,789
Shares issued from the Employee Stock Purchase Plan		0
Bancorp Dividends Declared and paid (in shares)				583
Bancorp Dividends Declared and paid		(9)					(9)
Stock-based compensation (in shares)				368,862
Stock-based compensation		10			10
Repurchase of shares	[1]	0
Ending balance (in shares) at Sep. 30, 2020				57,150,470
Ending balance at Sep. 30, 2020		2,195		$ 1	1,493	46	655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		222
Total other comprehensive income		0
Ending balance (in shares) at Sep. 30, 2020				57,150,470
Ending balance at Sep. 30, 2020		$ 2,195		$ 1	$ 1,493	$ 46	$ 655
[1]	Includes dividend reinvestment shares

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.05	$ 0.04
Dividends paid (in dollars per share)	$ 0.05	$ 0.04

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows - USD ($)		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Operating Activities
Net cash used in operating activities		$ (5,991,000,000)	$ (15,700,000,000)
Investing Activities
Proceeds from sale of AFS securities including loans that have been securitized		6,175,000,000	15,631,000,000
Collection of principal on investment securities AFS		395,000,000	129,000,000
Purchase of investment securities AFS and other		(359,000,000)	(39,000,000)
Collection of principal on investment securities HTM		158,000,000	68,000,000
Proceeds received from the sale of LHFI		433,000,000	167,000,000
Net closings, purchases, and principal repayments of LHFI		(4,794,000,000)	(3,575,000,000)
Acquisition of premises and equipment, net of proceeds		(44,000,000)	(48,000,000)
Net purchase of FHLB stock		(74,000,000)	0
Proceeds from the sale of MSRs		42,000,000	56,000,000
Other, net		(11,000,000)	(8,000,000)
Net cash provided by investing activities		1,921,000,000	12,381,000,000
Financing Activities
Net change in deposit accounts		4,799,000,000	3,365,000,000
Net change in short-term FHLB borrowings and other short-term debt		(1,939,000,000)	(913,000,000)
Proceeds from increases in FHLB long-term advances and other debt		550,000,000	550,000,000
Repayment of FHLB long-term advances		0	(50,000,000)
Repayment of long-term debt		(3,000,000)	0
Net receipt of payments of loans serviced for others		531,000,000	366,000,000
Common stock repurchase		0	(50,000,000)
Dividends declared and paid		(9,000,000)	(7,000,000)
Other		(8,000,000)	14,000,000
Net cash provided by financing activities		3,921,000,000	3,275,000,000
Net change in cash, cash equivalents and restricted cash	[1]	(149,000,000)	(44,000,000)
Beginning cash, cash equivalents and restricted cash	[1]	456,000,000	432,000,000
Ending cash, cash equivalents and restricted cash	[1]	307,000,000	388,000,000
Supplemental disclosure of cash flow information
Non-cash reclassification of LHFI to LHFS		445,000,000	101,000,000
Non-cash reclassification of LHFS to securitized HFS loans		6,183,000,000	15,198,000,000
MSRs resulting from sale or securitization of loans		209,000,000	203,000,000
Operating section supplemental disclosures
Proceeds from sales of LHFS		30,332,000,000	7,714,000,000
Closings, premium paid and purchase of LHFS, net of principal repayments		$ (35,603,000,000)	$ (23,249,000,000)
[1]	For further information on restricted cash, see Note 8 - Derivatives.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
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 GAAP for interim financial statements. Where we say "we," "us," "our," the "Company," "Bancorp" or "Flagstar," we usually mean Flagstar Bancorp, Inc. However, in some cases, a reference to "we," "us," "our," the "Company" or "Flagstar" will include 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 SEC. 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, 2019, which is available on our website, flagstar.com, and on the SEC website at sec.gov.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities The following table presents our AFS and HTM investment securities: Amortized Cost Gross Unrealized Gross Unrealized Fair Value (Dollars in millions) September 30, 2020 Available-for-sale securities Agency - Commercial $ 1,126 $ 45 $ — $ 1,171 Agency - Residential 806 31 — 837 Corporate debt obligations 76 1 — 77 Municipal obligations 29 1 — 30 Other MBS 49 — — 49 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 2,087 $ 78 $ — $ 2,165 Held-to-maturity securities Agency - Commercial $ 221 $ 8 $ — $ 229 Agency - Residential 219 10 — 229 Total held-to-maturity securities (1) $ 440 $ 18 $ — $ 458 December 31, 2019 Available-for-sale securities Agency - Commercial $ 948 $ 2 $ (3) $ 947 Agency - Residential 1,015 4 (4) 1,015 Corporate debt obligations 76 1 — 77 Municipal obligations 31 — — 31 Other MBS 44 1 — 45 Certificate of Deposits 1 — — 1 Total available-for-sale securities (1) $ 2,115 $ 8 $ (7) $ 2,116 Held-to-maturity securities Agency - Commercial $ 306 $ — $ (1) $ 305 Agency - Residential 292 3 (1) 294 Total held-to-maturity securities (1) $ 598 $ 3 $ (2) $ 599 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at September 30, 2020 or December 31, 2019. We evaluate AFS debt securities where the value has declined below amortized cost for impairment. If we intend to sell or believe it is more likely than not that we will be required to sell the debt security, it is written down to fair value through earnings. For AFS debt securities we intend to hold, we evaluate the debt securities for expected credit losses, except for debt securities that are guaranteed by the U.S. Treasury, U.S. government agencies or sovereign entities of high credit quality for which we apply a zero credit loss assumption and which represented 94 percent of our AFS portfolio as of September 30, 2020. For the remaining AFS securities, credit losses are recognized as an increase to the allowance for credit losses through the credit loss provision. If any of the decline in fair value is related to market factors, that amount is recognized in OCI. We had no unrealized credit losses as of September 30, 2020 and December 31, 2019. We separately evaluate our HTM debt securities for any credit losses. As of September 30, 2020 and December 31, 2019, our entire HTM portfolio qualified for the zero loss assumption as all securities are guaranteed by the U.S. Treasury, U.S. government agencies. Investment securities transactions are recorded on the trade date for purchases and sales. Interest earned on investment securities, including the amortization of premiums and the accretion of discounts, are determined using the effective interest method over the period of maturity and recorded in interest income in the Consolidated Statements of Operations. Accrued interest receivable on investment securities totaled $6 million at both September 30, 2020 and December 31, 2019, and was reported in other assets on the Consolidated Statements of Financial Condition. Available-for-sale securities Securities available-for-sale are carried at fair value. Unrealized gains and losses on AFS securities are reported as a component of other comprehensive income. We purchased $359 million of AFS securities, which were comprised of U.S. government sponsored agency MBS, certificate of deposits, and corporate debt obligations during the nine months ended September 30, 2020. We did not purchase any AFS securities during the three months ended September 30, 2020. We purchased $16 million and $39 million of AFS securities, which were comprised of U.S. government sponsored agency MBS, certificate of deposits, and corporate debt obligations during the three and nine months ended September 30, 2019, respectively. In addition, we retained $18 million of passive interests in our own private MBS during the nine months ended September 30, 2020. We did not retain any interest in our own private MBS during the three months ended September 30, 2020 or both the three and nine months ended September 30, 2019. There were no sales of AFS securities during both the three and nine months ended September 30, 2020. There were no sales of AFS securities during the three months ended September 30, 2019, and $432 million in sales of AFS securities during the nine months ended September 30, 2019. These sales resulted in a gain of $7 million, reported in other noninterest income in the Consolidated Statements of Operations. These sales did not include those related to mortgage loans that had been securitized for sale in the normal course of business. Held-to-maturity securities Investment securities HTM 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. There were no purchases or sales of HTM securities during both the three and nine months ended September 30, 2020 and September 30, 2019. The following table summarizes the unrealized loss positions on available-for-sale and held-to-maturity investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) September 30, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 4 1 $ — Municipal obligations $ — — $ — $ 6 1 $ — Corporate debt obligations $ — — $ — $ 13 4 $ — Other mortgage-backed securities $ — — $ — $ — 1 $ — Held-to-maturity securities Agency - Residential $ — — $ — $ 5 2 $ — December 31, 2019 Available-for-sale securities Agency - Commercial $ 148 17 $ (3) $ 303 19 $ — Agency - Residential $ 266 26 $ (3) $ 148 14 $ (1) Municipal obligations $ 8 3 $ — $ — — $ — Held-to-maturity securities Agency - Commercial $ 148 13 $ (1) $ 85 6 $ — Agency - Residential $ 35 7 $ (1) $ 38 10 $ — Unrealized losses on available-for-sale securities have not been recognized into income because almost all of the portfolio held by us are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. The remaining unrealized losses on available-for-sale securities are municipal securities and corporate debt obligations, all of which are considered investment grade or are de minimis. The fair value is expected to recover as the bonds approach maturity. The following table shows the amortized cost and estimated fair value of securities by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-Maturity Amortized Fair Weighted Average Amortized Fair Weighted Average (Dollars in millions) September 30, 2020 Due in one year or less $ 5 $ 5 2.24 % $ — $ — — % Due after one year through five years 8 8 2.71 % 8 8 2.52 % Due after five years through 10 years 108 111 4.23 % 8 8 2.35 % Due after 10 years 1,966 2,041 2.38 % 424 442 2.34 % Total $ 2,087 $ 2,165 $ 440 $ 458 We pledge investment securities, primarily agency collateralized and municipal taxable mortgage obligations, to collateralize lines of credit and/or borrowings. At September 30, 2020 and December 31, 2019, we had pledged investment securities of $176 million and $874 million, respectively.

Loans Held-for-Sale

Loans Held-for-Sale	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Loans Held-for-Sale	Loans Held-for-Sale The majority of our mortgage loans originated as LHFS are ultimately sold into the secondary market on a whole loan basis or by securitizing the loans into agency, government, or private label mortgage-backed securities. LHFS totaled $5.4 billion and $5.3 billion at September 30, 2020 and December 31, 2019, respectively. For the three and nine months ended September 30, 2020 we had net gain on loan sales associated with LHFS of $344 million and $737 million as compared to $110 million and $232 million for the three and nine months ended September 30, 2019.

Loans Held-for-Investment

Loans Held-for-Investment	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Loans Held-for-Investment	Loans Held-for-Investment We classify loans that we have the intent and ability to hold for the foreseeable future or until maturity as LHFI. We report LHFI at their amortized cost, which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees and costs. The accrued interest receivable on loans held-for-investment totaled $41.0 million at September 30, 2020 and $36.9 million at December 31, 2019 and was reported in other assets on the Consolidated Statements of Financial Condition. The following table presents our loans held-for-investment: September 30, 2020 December 31, 2019 (Dollars in millions) Consumer loans Residential first mortgage $ 2,472 $ 3,154 Home equity 924 1,024 Other 973 729 Total consumer loans 4,369 4,907 Commercial loans Commercial real estate 2,996 2,828 Commercial and industrial 1,520 1,634 Warehouse lending 7,591 2,760 Total commercial loans 12,107 7,222 Total loans held-for-investment $ 16,476 $ 12,129 The following table presents the UPB of our loan sales and purchases in the loans held-for-investment portfolio: Nine Months Ended September 30, 2020 2019 (Dollars in millions) Loans Sold (1) Performing loans $ 436 $ 166 Total loans sold $ 436 $ 166 Net gain associated with loan sales (2) $ 3 $ 2 Loans Purchased Home equity $ — $ 199 Other consumer (3) 63 51 Total loans purchased $ 63 $ 250 Premium associated with loans purchased $ — $ 9 (1) Upon a change in our intent, the loans were transferred to LHFS and subsequently sold. (2) Recorded in net gain on loan sales on Consolidated Statements of Operations. (3) Does not include point of sale flow consumer loans. We have pledged certain LHFI, LHFS, and loans with government guarantees to collateralize lines of credit and/or borrowings with the FHLB of Indianapolis and the FRB of Chicago. At September 30, 2020 we had pledged loans of $10.7 billion, compared to $9.1 billion at December 31, 2019. Allowance for Loan Losses We determine the estimate of the allowance for loan losses on at least a quarterly basis. The allowance for loan losses represents management's estimate of lifetime losses in our LHFI portfolio, excluding loans carried under the fair value option. We establish an allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance uses a loan-level, model-based approach, to estimate the expected lifetime credit losses. For non-performing loans, we've elected to use the collateral dependent practical expedient. The reserve for collateral dependent loans is established as the difference between fair value of the collateral less cost to sell and the amortized cost of the loan. Management applies judgment and assigns qualitative factors to each loan portfolio segment or the portfolio as a whole based upon the consideration of the following factors: levels of and trends in delinquencies and performance of loans, levels of and trends in write-offs and recoveries collected, changes in the nature and volume of the portfolio, changes in reasonable and supportable economic forecasts, changes in lending policies and procedures, changes in economic and business conditions, changes in lending management, changes in credit quality statistics, changes in the quality of the loan review system, changes in prepayment expectations or other factors affecting assessments of loan contractual term, changes in concentrations of credit, industry conditions and other internal or external factor changes. A specific allowance is established on impaired loans when it is probable all amounts due will not be collected pursuant to the original contractual terms of the loan and the recorded investment in the loan exceeds its fair value. The required allowance is measured using either the present value of the expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A general allowance is established for lifetime losses inherent on non-impaired loans by segmenting the portfolio based upon common risk characteristics. Our consumer loan portfolio is segmented into Residential First Mortgage, Home Equity and Other Consumer. Loan characteristics impacting these segments include lien position, credit quality, and loan structure. At a high-level our commercial loans are segmented into Commercial Real Estate, Commercial and Industrial, and Warehouse Lending. Loan characteristics impacting these segments include credit quality and loan structure. We measure the allowance using the applicable dual risk rating model which measures probability of default, loss given default and exposure at default. As of September 30, 2020, we estimated losses over a two-year reasonable and supportable forecast period using macroeconomic scenarios before reverting economic variables over a one-year period to their long-term historical averages on a straight-line basis. As of September 30, 2020, we utilized the Moody’s September scenarios in our forecast: a growth forecast, weighted at 30 percent; a baseline forecast, weighted at 40 percent; and an adverse forecast, weighted at 30 percent. The resulting composite forecast for the third quarter of 2020 was roughly equivalent to the scenario used in the second quarter 2020. Unemployment ends the year at 10 percent and recovers only slightly in 2021. GDP recovers only slightly by the end of the year from current levels and does not return to near pre-COVID level until 2024. HPI decreases 2 percent from mid-2020 through 2021. The following table presents changes in the allowance for loan losses, by class of loan: Residential Home Equity Other Commercial Commercial Warehouse Total (Dollars in millions) Three Months Ended September 30, 2020 Beginning balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 Provision (6) 1 4 6 19 4 28 Charge-offs (2) (1) (1) — — — (4) Recoveries — 1 1 — — — 2 Ending allowance balance $ 52 $ 29 $ 38 $ 89 $ 42 $ 5 $ 255 Three Months Ended September 30, 2019 Beginning balance $ 26 $ 16 $ 5 $ 35 $ 23 $ 5 $ 110 Provision (benefit) 2 — 3 (2) (2) — 1 Charge-offs (1) (1) (2) — — — (4) Recoveries 1 1 — — 1 — 3 Ending allowance balance $ 28 $ 16 $ 6 $ 33 $ 22 $ 5 $ 110 Nine Months Ended September 30, 2020 Beginning balance, prior to adoption of ASC 326 $ 22 $ 14 $ 6 $ 38 $ 22 $ 5 $ 107 Impact of adopting ASC 326 25 12 10 (14) (6) (4) 23 Provision 10 3 24 65 26 4 132 Charge-offs (5) (3) (4) — — — (12) Recoveries — 3 2 — — — 5 Ending allowance balance $ 52 $ 29 $ 38 $ 89 $ 42 $ 5 $ 255 Nine Months Ended September 30, 2019 Beginning balance $ 38 $ 15 $ 3 $ 48 $ 18 $ 6 $ 128 Provision (benefit) (8) — 8 (15) 34 (1) 18 Charge-offs (3) (1) (5) — (31) — (40) Recoveries 1 2 — — 1 — 4 Ending allowance balance $ 28 $ 16 $ 6 $ 33 $ 22 $ 5 $ 110 (1) Includes loans with government guarantees. The allowance for loan losses was $255 million at September 30, 2020 and $110 million at September 30, 2019. The increase in the allowance is reflective of the adoption of CECL, changes in the economic forecasts used in the ACL models as a result of the ongoing COVID-19 pandemic and credit downgrades largely attributed to challenging economic conditions being faced by certain of our borrowers due to the pandemic. Loans are considered to be past due when any payment of principal or interest is 30 days past the scheduled payment date. While it is the goal of management to collect on loans, we attempt to work out a satisfactory repayment schedule or modification with past due borrowers and will undertake foreclosure proceedings if the delinquency is not satisfactorily resolved. Our practices regarding past due loans are designed to both assist borrowers in meeting their contractual obligations and minimize losses incurred by the Bank. Beginning in March 2020, as a response to COVID-19, customers facing COVID-19 related difficulties were offered forbearance in an effort to help our borrowers get to the other side of the health crisis when we believe they will be able to fulfill all of their contractual commitments. We cease the accrual of interest on all classes of consumer and commercial loans upon the earlier of, becoming 90 days past due, or when doubt exists as to the ultimate collection of principal or interest (classified as nonaccrual or nonperforming loans). When a loan is placed on nonaccrual status, the accrued interest income is reversed and the loan may only return to accrual status when principal and interest become current and are anticipated to be fully collectible. We do not measure an allowance for credit losses for accrued interest receivables as accrued interest is written off in a timely manner. We are not aging receivables for customers who have been granted a payment deferral in response to COVID-19 which remain in the aging category they were in at the time of payment deferral. We continue to accrue interest on these loans, consistent with our forbearance programs. The following table sets forth the LHFI aging analysis of past due and current loans: 30-59 Days 60-89 Days 90 Days or Total Current Total LHFI (3) (4) (Dollars in millions) September 30, 2020 Consumer loans Residential first mortgage $ 5 $ 3 $ 30 $ 38 $ 2,434 $ 2,472 Home equity 1 — 4 5 919 924 Other 3 1 2 6 967 973 Total consumer loans 9 4 36 49 4,320 4,369 Commercial loans Commercial real estate — — — — 2,996 2,996 Commercial and industrial — — 10 10 1,510 1,520 Warehouse lending — — — — 7,591 7,591 Total commercial loans — — 10 10 12,097 12,107 Total loans (2) $ 9 $ 4 $ 46 $ 59 $ 16,417 $ 16,476 December 31, 2019 Consumer loans Residential first mortgage $ 5 $ 4 $ 21 $ 30 $ 3,124 $ 3,154 Home Equity 1 — 4 5 1,019 1,024 Other 3 1 1 5 724 729 Total consumer loans 9 5 26 40 4,867 4,907 Commercial loans Commercial real estate — — — — 2,828 2,828 Commercial and industrial — — — — 1,634 1,634 Warehouse lending — — — — 2,760 2,760 Total commercial loans — — — — 7,222 7,222 Total loans (2) $ 9 $ 5 $ 26 $ 40 $ 12,089 $ 12,129 (1) Includes less than 90 day past due performing loans which are deemed nonaccrual. Interest is not being accrued on these loans. (2) Includes $8 million and $4 million of past due loans accounted for under the fair value option as of September 30, 2020 and December 31, 2019, respectively. (3) Collateral dependent loans totaled $74 million at September 30, 2020 and $54 million at December 31, 2019, respectively. The majority of these loans are secured by real estate. (4) The interest income recognized on impaired loans was $2 million and less than $1 million at September 30, 2020 and December 31, 2019, respectively. Interest income is recognized on nonaccrual loans using a cash basis method. The interest that would have been accrued on impaired loans was $2 million and less than $1 million at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020 and December 31, 2019, we had no loans 90 days past due and still accruing interest. Reserve for Unfunded Commitments We estimated expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. The reserve for unfunded commitments is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The reserve for unfunded commitments is reflected in other liabilities on the Consolidated Statements of Financial Condition and was $25 million as of September 30, 2020, compared to $3 million as of December 31, 2019. The increase in the reserve is reflective of the adoption of CECL which required us to record an allowance for our estimate of lifetime losses and an increase due to changes in the economic forecasts used in the ACL models as a result of the ongoing COVID-19 pandemic. The following categories of off-balance sheet credit exposures have been identified: unfunded loans with available balances, new commitments to lend that are not yet funded, and standby and commercial letters of credit. For further information, see Note 15 - Legal Proceedings, Contingencies and Commitments. Troubled Debt Restructurings We may modify certain loans in both our consumer and commercial loan portfolios to retain customers or to maximize collection of the outstanding loan balance. TDRs are modified loans in which a borrower demonstrates financial difficulties and for which a concession has been granted as a result. Nonperforming TDRs are included in nonaccrual loans. TDRs remain in nonperforming status until a borrower has made payments and is current for at least six consecutive months. Performing TDRs are not considered to be nonaccrual so long as we believe that all contractual principal and interest due under the restructured terms will be collected. Performing and nonperforming TDRs remain impaired as interest and principal will not be received in accordance with the original contractual terms of the loan agreement. Refer to Note 1- Description of Business, Basis of Presentation, and Summary of Significant Accounting Standards to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the methodology used to determine TDRs. 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 nonperforming TDRs. Beginning in March 2020, as a response to COVID-19, we offered our consumer and commercial customers principal and interest payment deferrals and extensions. We considered these programs in the context of whether or not the short-term modifications of these loans would constitute a TDR. We considered the CARES Act, interagency guidance and related guidance from the FASB, which provided that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not required to be accounted for as TDRs. As a result, we have determined that these loans are not TDRs. The following table provides a summary of TDRs by type and performing status: TDRs Performing Nonperforming Total (Dollars in millions) September 30, 2020 Consumer loans Residential first mortgage $ 20 $ 7 $ 27 Home equity 14 2 16 Commercial Real Estate 5 — 5 Total TDRs (1)(2) $ 39 $ 9 $ 48 December 31, 2019 Consumer loans Residential first mortgage $ 20 $ 8 $ 28 Home Equity 18 2 20 Total TDRs (1)(2) $ 38 $ 10 $ 48 (1) Allowance for loan losses on TDR loans totaled $5 million and $8 million at September 30, 2020 and December 31, 2019, respectively. (2) Includes $2 million of TDR loans accounted for under the fair value option at September 30, 2020 and December 31, 2019. The following table provides a summary of newly modified TDRs: New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) (Dollars in millions) Three Months Ended September 30, 2020 Residential first mortgages 1 $ — $ — Home equity (2)(3) 1 — — Consumer 1 — — Total TDR loans 3 $ — $ — Three Months Ended September 30, 2019 Residential first mortgages 4 $ 1 $ 1 Total TDR loans 4 $ 1 $ 1 Nine Months Ended September 30, 2020 Residential first mortgages 6 $ 1 $ 1 Home equity (2)(3) 3 — — Consumer 2 — — Commercial Real Estate 1 5 5 Total TDR loans 12 $ 6 $ 6 Nine Months Ended September 30, 2019 Residential first mortgages 6 $ 1 $ 1 Home equity (2)(3) 4 1 1 Total TDR loans 10 $ 2 $ 2 (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) Home equity post-modification UPB reflects write downs. (3) Includes loans carried at the fair value option. There were no loans modified in the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2020 or September 30, 2019. All TDR classes within the consumer and commercial portfolios are considered subsequently defaulted when they are greater than 90 days past due within 12 months of the restructuring date. Credit Quality We utilize an internal risk rating system 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 full collection or liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. For home equity 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. Substandard loans may be placed on either accrual or non-accrual status. 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. Due to the high probability of loss, doubtful assets are placed on non-accrual. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as a 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 the asset even though partial recovery may be affected in the future. 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, and 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 based 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. Payment activity, credit rating and loan-to-value ratios have the most significant impact on the ACL for consumer loans. The following table presents the amortized cost in residential and consumer loans based on payment activity: Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Term Loans Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 256 $ 630 $ 272 $ 348 $ 308 $ 483 $ 105 $ 8 $ 2,410 $ 3,107 Watch — 1 — 2 — 16 — — 19 23 Substandard — 4 6 2 — 17 — 1 30 15 Home Equity Pass 6 37 16 7 2 12 799 29 908 1,002 Watch — — — — — 12 — — 12 16 Substandard — — — — — 1 1 — 2 3 Other Consumer Pass 226 345 165 4 2 7 218 5 972 727 Watch — — — — — — — — — 1 Substandard — — 1 — — — — — 1 1 Total Consumer Loans (1) $ 488 $ 1,017 $ 460 $ 363 $ 312 $ 548 $ 1,123 $ 43 $ 4,354 $ 4,895 (1) Excludes loans carried under the fair value option The following table presents the amortized cost in residential and consumer loans based on credit scores: Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 151 $ 323 $ 141 $ 241 $ 228 $ 272 $ 61 $ 2 $ 1,419 700-750 79 212 106 95 73 148 30 5 748 <700 26 100 31 16 7 96 14 2 292 Home Equity >750 2 11 6 3 — 7 358 4 391 700-750 2 14 5 3 1 9 319 14 367 <700 2 12 5 1 1 9 123 11 164 Other Consumer >750 160 220 87 1 — 5 200 5 678 700-750 61 114 65 3 2 2 18 — 265 <700 5 11 14 — — — — — 30 Total Consumer Loans (1) $ 488 $ 1,017 $ 460 $ 363 $ 312 $ 548 $ 1,123 $ 43 $ 4,354 (1) Excludes loans carried under the fair value option Loan-to-value ratios primarily impact the allowance on mortgages within the consumer loan portfolio. The following table presents the amortized cost in residential first mortgages and home equity based on loan-to-value ratios: Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential first mortgage >90 $ 53 $ 286 $ 142 $ 39 $ 3 $ 21 $ — $ — $ 544 71-90 122 213 77 123 82 267 — — 884 55-70 64 78 29 99 121 140 — — 531 <55 17 58 30 91 102 88 105 9 500 Home Equity >90 — — — 2 1 11 1 — 15 71-90 4 29 12 4 1 10 612 21 693 <=70 2 8 4 1 — 4 187 8 214 Total (1) $ 262 $ 672 $ 294 $ 359 $ 310 $ 541 $ 905 $ 38 $ 3,381 (1) Excludes loans carried under the fair value option Commercial Loans Risk rating and average loan duration have the most significant impact on the ACL for commercial loans. Additional factors which impact the ACL are debt-service-coverage ratio, loan-to-value ratio, interest-coverage ratio and leverage ratio. Internal audit conducts periodic examinations which serve as an independent verification of the accuracy of the ratings assigned. All loans are examined on an at least annual basis. 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, 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 results in the final rating for the borrowing relationship. Based on the most recent analysis performed, the amortized cost basis, by risk category for each class of loans within the commercial portfolio is as follows: Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Commercial Loans (Dollars in million) Commercial real estate Pass $ 249 $ 978 $ 466 $ 452 $ 325 $ 239 $ (1) $ — $ 2,708 $ 2,794 Watch 20 14 81 44 28 31 — — 218 24 Special mention 4 9 16 — 10 — — — 39 5 Substandard — 3 3 25 — — — — 31 5 Commercial and industrial Pass 212 494 185 188 107 116 20 — 1,322 1,533 Watch 2 46 26 25 — 1 — — 100 72 Special mention 2 13 13 17 — 5 — — 50 24 Substandard 21 1 16 10 — — — — 48 5 Warehouse Pass — — — — — — 7,381 — 7,381 2,556 Watch — — — — — — 195 — 195 189 Special mention — — — — — — 15 — 15 15 Substandard — — — — — — — — — — Total commercial loans $ 510 $ 1,558 $ 806 $ 761 $ 470 $ 392 $ 7,610 $ — $ 12,107 $ 7,222

Loans with Government Guarantee

Loans with Government Guarantees	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Loans with Government Guarantees	Loans with Government Guarantees Substantially all loans with government guarantees are insured or guaranteed by the FHA or the 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 or the U.S. Department of Veterans Affairs until claimed. When a GNMA loan is due, but unpaid, for three consecutive months (typically referred to as 90 days past due) the loan is required to be re-recognized on the balance sheet by the MSR owner. These loans are recorded in loans with government guarantees, and the liability to repurchase the loans is recorded in other liabilities on the consolidated statements of financial condition. This resulted in $1.8 billion of repurchase options as of September 30, 2020, a $1.7 billion increase from December 31, 2019. Certain loans within our portfolio may be subject to indemnifications and insurance limits which expose us to limited credit risk. We have reserved for these risks within other assets and as a component of our allowance for loan losses on residential first mortgages. Repossessed assets and the associated claims related to government guaranteed loans are recorded in other assets and totaled $22 million and $45 million, at September 30, 2020 and December 31, 2019, respectively.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2020
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract]
Variable Interest Entities	Variable Interest Entities    We have no consolidated VIEs as of September 30, 2020 and December 31, 2019.    In connection with our securitization activities, we have retained a five percent interest in the investment securities of certain trusts ("other MBS") and are contracted as the subservicer of the underlying loans, compensated based on market rates, which constitutes a continuing involvement in these trusts. Although we have a variable interest in these securitization trusts, we are not their primary beneficiary due to the relative size of our investment in comparison to the total amount of securities issued by the VIE and our inability to direct activities that most significantly impact the VIE’s economic performance. As a result, we have not consolidated the assets and liabilities of the VIE in our Consolidated Statements of Financial Condition. The Bank’s maximum exposure to loss is limited to our investment in the VIE, as well as the standard representations and warranties made in conjunction with the loan transfer. See Note 2 - Investment Securities and Note 16 - Fair Value Measurements, for additional information.

Mortgage Servicing Rights

Mortgage Servicing Rights	9 Months Ended
	Sep. 30, 2020
Transfers and Servicing [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights We have investments in MSRs that result from the sale of loans to the secondary market for which we retain the servicing. We account for MSRs at their fair value. A primary risk associated with MSRs is the potential reduction in fair 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 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. 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. For further information regarding the derivative instruments utilized to manage our MSR risks, see Note 8 - Derivative Financial Instruments. Changes in the fair value of residential first mortgage MSRs were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Balance at beginning of period $ 261 $ 316 $ 291 $ 290 Additions from loans sold with servicing retained 85 39 209 203 Reductions from sales — (12) (46) (57) Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) (25) (30) (74) (60) Changes in estimates of fair value due to interest rate risk (1) (2) 2 (28) (57) (91) Fair value of MSRs at end of period $ 323 $ 285 $ 323 $ 285 (1) Changes in fair value are included within net return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes which we manage through the use of derivatives. The following table summarizes the hypothetical effect on the fair value of servicing rights using adverse changes of 10 percent and 20 percent to the weighted average of certain significant assumptions used in valuing these assets: September 30, 2020 December 31, 2019 Fair value Fair value Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 7.61 % $ 316 $ 310 5.34 % $ 284 $ 280 Constant prepayment rate 11.36 % $ 300 $ 279 10.59 % $ 271 $ 257 Weighted average cost to service per loan $ 81.68 $ 320 $ 316 $ 84.41 $ 285 $ 282 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. For further information on the fair value of MSRs, see Note 16 - Fair Value Measurements. 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 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 on subserviced loans, net of third party subservicing costs. The following table summarizes income and fees associated with owned mortgage servicing rights: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Net return (loss) on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 30 $ 25 $ 75 $ 70 Decrease in MSR fair value due to pay-offs, pay-downs, (25) (30) (74) (60) Changes in fair value due to interest rate risk 2 (28) (57) (91) Gain on MSR derivatives (2) 4 31 68 92 Net transaction costs 1 — (2) (2) Total return (loss) included in net return on mortgage servicing rights $ 12 $ (2) $ 10 $ 9 (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The following table summarizes income and fees associated with our mortgage loans subserviced for others: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Loan administration income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 33 $ 27 $ 94 $ 77 Charges on subserviced custodial balances (2) (3) (20) (26) (50) Other servicing charges (4) (2) (9) (5) Total income on mortgage loans subserviced, included in loan administration $ 26 $ 5 $ 59 $ 22 (1) Servicing fees are recorded on an accrual basis. Late fees are recorded on cash basis. (2) Charges on subserviced custodial balances represent interest due to MSR owner.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2020
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. Our policy is to present our derivative assets and derivative liabilities on the Consolidated Statement of Financial Condition on a gross basis, even when provisions allowing for set-off are in place. However, for derivative contracts cleared through certain central clearing parties, variation margin payments are recognized as settlements. We are exposed to non-performance risk by the counterparties to our various derivative financial instruments. A majority of our derivatives are centrally cleared through a Central Counterparty Clearing House or consist of residential mortgage interest rate lock commitments further limiting our exposure to non-performance risk. We believe that the non-performance risk inherent in our remaining derivative contracts is minimal based on credit standards and the collateral provisions of the derivative agreements. Derivatives not designated as hedging instruments: We maintain 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. We also enter 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 LHFS 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 Operations. Derivatives designated as hedging instruments: We have designated certain interest rate swaps as fair value hedges of investment securities available for sale and residential first mortgage loans held for investment using the last-of-layer method. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item. We have also designated certain interest rate swaps as cash flow hedges on LIBOR based variable interest payments on certain custodial deposits. 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 September 30, 2020, we had $10 million (net-of-tax) of unrealized losses on derivatives classified as cash flow hedges recorded in accumulated other comprehensive income. We had no designated cash flow hedges at December 31, 2019. The estimated amount to be reclassified from other comprehensive income into earnings during the next 12 months represents $4 million of losses (net-of-tax). Derivatives that are designated in hedging relationships are assessed for effectiveness using regression analysis at inception and qualitatively thereafter, unless regression analysis is deemed necessary. All designated hedge relationships were and are expected to be highly effective as of September 30, 2020. The following tables present the notional amount, estimated fair value and maturity of our derivative financial instruments: September 30, 2020 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Assets Interest rate swaps on custodial deposits $ 800 $ 1 2026-2027 Derivatives in fair value hedge relationships: Assets Interest rate swaps on AFS securities $ 450 $ — 2022-2025 Interest rate swaps on HFI residential first mortgages 100 — 2024 Total derivative assets $ 550 $ — Derivatives not designated as hedging instruments: Assets Futures $ 1,132 $ — 2020-2023 Mortgage-backed securities forwards 3,471 9 2020 Rate lock commitments 12,015 257 2020-2021 Interest rate swaps 724 65 2020-2030 Total derivative assets $ 17,342 $ 331 Liabilities Mortgage-backed securities forwards $ 8,008 $ 37 2020 Rate lock commitments 169 — 2020-2021 Interest rate swaps and swaptions 2,030 9 2020-2050 Total derivative liabilities $ 10,207 $ 46 (1) Variation margin pledged to or received from a Central Counterparty Clearing House is considered settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. December 31, 2019 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in fair value hedge relationships: Assets Interest rate swaps on FHLB advances $ 200 $ — 2020 Interest rate swaps on AFS securities 100 — 2022 Total derivative assets $ 300 $ — Derivatives not designated as hedging instruments: Assets Futures $ 550 $ — 2020-2023 Mortgage-backed securities forwards 1,918 2 2020 Rate lock commitments 3,870 34 2020 Interest rate swaps 799 26 2020-2029 Total derivative assets $ 7,137 $ 62 Liabilities Mortgage-backed securities forwards $ 5,749 $ 9 2020 Rate lock commitments 229 1 2020 Interest rate swaps and swaptions 1,662 8 2020-2050 Total derivative liabilities $ 7,640 $ 18 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Netted in the Statements of Financial Condition Net Amount Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Gross Amount Financial Instruments Cash Collateral (Dollars in millions) September 30, 2020 Derivatives designated as hedging instruments: Assets Interest rate swaps on AFS securities $ — $ — $ — $ — $ 4 Interest rate swaps on custodial deposits 1 — 1 — 7 Interest rate swaps on HFI residential first mortgages — — — — 1 Total derivative assets $ 1 $ — $ 1 $ — $ 12 Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ — Total derivative liabilities $ — $ — $ — $ — $ — Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 9 $ — $ 9 $ — $ — Interest rate swaps 65 — 65 — — Futures — — — — — Total derivative assets $ 74 $ — $ 74 $ — $ — Liabilities Mortgage-backed securities forwards $ 37 $ — $ 37 $ — $ 39 Interest rate swaps and swaptions (1) 9 — 9 — 31 Total derivative liabilities $ 46 $ — $ 46 $ — $ 70 December 31, 2019 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 2 $ — $ 2 $ — $ — Interest rate swaps 26 — 26 — — Total derivative assets $ 28 $ — $ 28 $ — $ — Liabilities Mortgage-backed securities forwards $ 9 $ — $ 9 $ — $ 24 Interest rate swaps and swaptions (1) 8 — 8 — 39 Total derivative liabilities $ 17 $ — $ 17 $ — $ 63 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes. Losses of $1 million on fair value hedging relationships of AFS securities were recorded in interest income for three and nine months ended September 30, 2020 Losses of $1 million and $2 million on cash flow hedging relationships of custodial deposits were reclassified from AOCI into loan administration income during the three and nine months ended September 30, 2020. Gains and losses on fair value hedging relationships of HFI residential first mortgages for the three and nine months ended September 30, 2020 were de-minimis. The fair value basis adjustment on our hedged AFS securities is included in investment securities available for sale on our Consolidated Statements of Financial Condition. The carrying amount of our hedged securities was $1,878 million at September 30, 2020 and $287 million at December 31, 2019 of which $8 million and $1 million, respectively, were due to the fair value hedge relationship. The closed portfolio of AFS securities designated in this last layer method hedge was $1,808 million par (amortized cost of $1,805 million) at September 30, 2020 and $291 million par (amortized cost of $289 million) at December 31, 2019 of which we have designated $450 million and $100 million at September 30, 2020 and December 31, 2019, respectively. The fair value basis adjustment on our hedged fair HFI residential first mortgages is included in loans held-for-investment on our Consolidated Statements of Financial Condition. The carrying amount of our hedged loans was $255 million at September 30, 2020 of which $1 million was due to the fair value hedge relationship. There were no hedged HFI residential first mortgages at December 31, 2019. We have designated $100 million of this closed portfolio of loans in a hedging relationship as of September 30, 2020. At September 30, 2020, we pledged a total of $82 million related to derivative financial instruments, consisting of $56 million of cash collateral on derivative liabilities and $26 million of maintenance margin on centrally cleared derivatives and had a de-minimis obligation to return cash on derivative assets. We pledged a total of $63 million related to derivative financial instruments, consisting of $34 million of cash collateral on derivatives and $29 million of maintenance margin on centrally cleared derivatives and had a de-minimis obligation to return cash on derivative assets at December 31, 2019. Within the Consolidated Statements of Financial Condition, the collateral related to derivative activity is included in other assets and other liabilities and the cash pledged as maintenance margin is restricted and included in other assets. The following table presents net gain recognized in income on derivative instruments, net of the impact of offsetting positions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Derivatives not designated as hedging instruments: Location of gain (loss) Futures Net loss on mortgage servicing rights $ — $ — $ 1 $ (2) Interest rate swaps and swaptions Net gain (loss) on mortgage servicing rights (2) 28 39 71 Mortgage-backed securities forwards Net gain (loss) on mortgage servicing rights 5 3 28 23 Rate lock commitments and MSR forwards Net gain (loss) on loan sales 70 27 190 57 Forward commitments Other noninterest income — — — 2 Interest rate swaps (1) Other noninterest income — 2 1 3 Total derivative (loss) gain $ 73 $ 60 $ 259 $ 154 (1) Includes customer-initiated commercial interest rate swaps.

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Borrowings	Borrowings Federal Home Loan Bank Advances The following is a breakdown of our FHLB advances outstanding: September 30, 2020 December 31, 2019 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 1,555 0.20 % $ 3,695 1.61 % Other short-term borrowings (1) 671 0.11 % 470 1.64 % Total short-term Federal Home Loan Bank advances and other borrowings 2,226 4,165 Long-term fixed rate advances (2) 1,200 1.03 % 650 1.45 % Total long-term Federal Home Loan Bank advances 1,200 650 Total Federal Home Loan Bank advances and other borrowings $ 3,426 $ 4,815 (1) Includes borrowings under overnight federal funds purchased lines with other Federal Reserve member institutions. (2) There was no current portion of fixed rate advances at both September 30, 2020 and December 31, 2019. The following table contains detailed information on our FHLB advances and other borrowings: Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 (Dollars in millions) Maximum outstanding at any month end $ 4,388 $ 2,979 $ 6,841 $ 3,391 Average outstanding balance $ 3,528 $ 2,446 $ 4,234 $ 2,769 Average remaining borrowing capacity $ 5,494 $ 4,957 $ 5,249 $ 3,932 Weighted average interest rate 0.48 % 2.10 % 0.76 % 2.33 % The following table outlines the maturity dates of our FHLB advances and other borrowings: September 30, 2020 (Dollars in millions) 2020 $ 2,226 2021 — 2022 200 2023 500 Thereafter 500 Total $ 3,426 Parent Company Senior Notes and Trust Preferred Securities The following table presents long-term debt, net of debt issuance costs: September 30, 2020 December 31, 2019 Amount Interest Rate Amount Interest Rate (Dollars in millions) Senior Notes Senior notes, matures 2021 $ 246 6.125 % $ 249 6.125 % Trust Preferred Securities Floating Three Month LIBOR Plus: 3.25%, matures 2032 26 3.48 % 26 5.20 % 3.25%, matures 2033 26 3.53 % 26 5.24 % 3.25%, matures 2033 26 3.47 % 26 5.21 % 2.00%, matures 2035 26 2.28 % 26 3.99 % 2.00%, matures 2035 26 2.28 % 26 3.99 % 1.75%, matures 2035 51 2.00 % 51 3.64 % 1.50%, matures 2035 25 1.78 % 25 3.49 % 1.45%, matures 2037 25 1.70 % 25 3.34 % 2.50%, matures 2037 16 2.75 % 16 4.39 % Total Trust Preferred Securities 247 247 Total other long-term debt $ 493 $ 496 Senior Notes On July 11, 2016, we issued $250 million of senior notes (“Senior Notes”) which mature on July 15, 2021. Prior to June 15, 2021, we may redeem some or all of the Senior Notes at a redemption price equal to the greater of 100 percent of the aggregate principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments discounted to the redemption date on a semi-annual basis using a discount rate equal to the Treasury Rate plus 0.50 percent, in addition to accrued and unpaid interest. Trust Preferred Securities We sponsor nine trust subsidiaries, which issued preferred stock to third party investors. We issued junior subordinated debt securities to those trusts, which we have included in long-term debt. The junior subordinated debt securities are the sole assets of those trusts. The trust preferred securities are callable by us at any time. Interest is payable quarterly; however, we

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income The following table sets forth the components in accumulated other comprehensive income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Investment Securities Beginning balance $ 56 $ (8) $ 1 $ (47) Unrealized gain — 18 72 61 Less: Tax provision — 5 17 15 Net unrealized gain — 13 55 46 Reclassifications out of AOCI (1) — — — 7 Less: Tax provision — — — 1 Net unrealized gain reclassified out of AOCI — — — 6 Other comprehensive income, net of tax — 13 55 52 Ending balance $ 56 $ 5 $ 56 $ 5 Cash Flow Hedges Beginning balance $ (10) $ — $ — $ — Unrealized loss — — (13) — Less: Tax benefit — — (3) — Net unrealized loss — — (10) — Reclassifications out of AOCI (1) — — — — Other comprehensive loss, net of tax — — (10) — Ending balance $ (10) $ — $ (10) $ — (1) Reclassifications are reported in noninterest income on the Consolidated Statements of Operations.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings applicable 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions, except share data) Net income applicable to common stockholders $ 222 $ 63 $ 384 $ 160 Weighted Average Shares Weighted average common shares outstanding 57,032,746 56,484,499 56,827,171 56,607,944 Effect of dilutive securities Stock-based awards 347,063 626,297 404,518 644,596 Weighted average diluted common shares $ 57,379,809 $ 57,110,796 $ 57,231,689 $ 57,252,540 Earnings per common share Basic earnings per common share $ 3.90 $ 1.12 $ 6.76 $ 2.83 Effect of dilutive securities Stock-based awards (0.02) (0.01) (0.05) (0.03) Diluted earnings per common share $ 3.88 $ 1.11 $ 6.71 $ 2.80

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation We had stock-based compensation expense of $6 million and $14 million for the three and nine months ended September 30, 2020, and $4 million and $9 million for the three and nine months ended September 30, 2019. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock units activity: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Shares Weighted — Average Grant-Date Fair Value per Share Shares Weighted — Average Grant-Date Fair Value per Share Restricted Stock and Restricted Stock Units Non-vested balance at beginning of period 1,412,884 $ 29.72 1,399,127 $ 28.72 Granted 7,429 30.96 378,953 27.96 Vested (207,046) 26.48 (448,452) 25.50 Canceled and forfeited (133,394) 22.70 (249,755) 22.59 Non-vested balance at end of period 1,079,873 $ 31.21 1,079,873 $ 31.21 2017 Employee Stock Purchase Plan A total of 800,000 shares of the Company’s common stock were reserved and authorized for issuance for purchase under the Employee Stock Purchase Plan (ESPP) of which 382,140 remain as of September 30, 2020. There were 43,946 and 149,789 shares issued under the ESPP during the three and nine months ended September 30, 2020 and the associated compensation expense was de minimis.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes in interim periods requires us to make a best estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The following table presents our provision for income tax and effective tax provision rate: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Income before income taxes $ 295 $ 78 $ 499 $ 197 Provision for income taxes 73 15 115 37 Effective tax provision rate 24.7 % 18.4 % 23.0 % 18.6 % We believe that it is unlikely that our 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 provision for income taxes.

Regulatory Matters

Regulatory Matters	9 Months Ended
	Sep. 30, 2020
Banking and Thrift, Other Disclosures [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. 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 September 30, 2020 and December 31, 2019. The following tables present the regulatory capital ratios as of the dates indicated: Flagstar Bancorp Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,256 8.0 % $ 1,123 4.0 % $ 1,403 5.0 % Common equity Tier 1 capital (to RWA) $ 2,016 9.2 % $ 985 4.5 % $ 1,422 6.5 % Tier 1 capital (to RWA) $ 2,256 10.3 % $ 1,313 6.0 % $ 1,751 8.0 % Total capital (to RWA) $ 2,471 11.3 % $ 1,751 8.0 % $ 2,188 10.0 % December 31, 2019 Tier 1 capital (to adjusted avg. total assets) $ 1,720 7.6 % $ 909 4.0 % $ 1,136 5.0 % Common equity Tier 1 capital (to RWA) $ 1,480 9.3 % $ 715 4.5 % $ 1,033 6.5 % Tier 1 capital (to RWA) $ 1,720 10.8 % $ 953 6.0 % $ 1,271 8.0 % Total capital (to RWA) $ 1,830 11.5 % $ 1,271 8.0 % $ 1,589 10.0 % Flagstar Bank Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,212 7.9 % $ 1,122 4.0 % $ 1,403 5.0 % Common equity Tier 1 capital (to RWA) $ 2,212 10.1 % $ 985 4.5 % $ 1,422 6.5 % Tier 1 capital (to RWA) $ 2,212 10.1 % $ 1,313 6.0 % $ 1,751 8.0 % Total capital (to RWA) $ 2,427 11.1 % $ 1,751 8.0 % $ 2,188 10.0 % December 31, 2019 Tier 1 capital (to adjusted avg. total assets) $ 1,752 7.7 % $ 909 4.0 % $ 1,136 5.0 % Common equity Tier 1 capital (to RWA) $ 1,752 11.0 % $ 714 4.5 % $ 1,032 6.5 % Tier 1 capital (to RWA) $ 1,752 11.0 % $ 952 6.0 % $ 1,270 8.0 % Total capital (to RWA) $ 1,862 11.7 % $ 1,270 8.0 % $ 1,587 10.0 %

Legal Proceedings, Contingencie

Legal Proceedings, Contingencies and Commitments	9 Months Ended
	Sep. 30, 2020
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 closing, purchase, sale, and servicing of mortgage loans. From time to time, governmental agencies also conduct investigations or examinations of various 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 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. At September 30, 2020, we do 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 Liability On February 24, 2012, the Bank entered into a Settlement Agreement with the DOJ under which we agreed to make future payments totaling $118 million in annual increments of up to $25 million upon meeting all of the following conditions which are evaluated quarterly and include: (a) the reversal of the DTA 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"), which occurred in July 2016; and (c) the Bank having a Tier 1 Leverage Capital Ratio of 11 percent or greater as filed in the Call Report with the OCC. No payment would be required until six months after the Bank files its Call Report with the OCC first reporting that its Tier 1 Leverage Capital Ratio was 11 percent or greater. If all other conditions were then satisfied, an initial annual payment would be due at that time. The next annual payment is only made if such other conditions continue to be satisfied, otherwise payments are delayed until all such conditions are met. Further, making such a payment must not violate any material banking regulatory requirement, and the OCC must not object in writing. Consistent with our business and regulatory requirements, Flagstar shall seek in good faith to fulfill the conditions, and will not undertake any conduct or fail to take any action the purpose of which is to frustrate or delay our ability to fulfill any of the above conditions. 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, annual payments must commence twelve months after the date of that business combination. The Settlement Agreement meets the definition of a financial instrument for which we elected the fair value option. We consider the assumptions a market participant would make to transfer the liability and evaluate the potential ways we might satisfy the Settlement Agreement and our estimates of the likelihood of these outcomes, which may change over time. The fair value of the liability is subject to significant uncertainty and is impacted by forecasted estimates of the timing of potential payments, some of which are impacted by inputs including estimates of equity, earnings, timing and amount of dividends and growth of the balance sheet and their related impacts on forecasted Tier 1 Leverage Capital Ratio discount rate, and the likelihood and types of potential business combinations, or any other means by which a payment could be made. For further information on the fair value of the liability, see Note 16 - Fair Value Measurements. Other litigation accruals At September 30, 2020 and December 31, 2019, excluding the fair value liability relating to the DOJ Liability, our total accrual for contingent liabilities and settled litigation was $7 million and $3 million, respectively. Commitments In the normal course of business, we have various commitments outstanding which are not included on our consolidated statements of financial position. The following table is a summary of the contractual amount of significant commitments: September 30, 2020 December 31, 2019 (Dollars in millions) Commitments to extend credit Mortgage loan commitments including interest-rate locks $ 12,257 $ 4,099 Warehouse loan commitments 2,218 1,944 Commercial and industrial commitments 1,207 1,107 Other commercial commitments 1,653 2,015 HELOC commitments 562 558 Other consumer commitments 301 175 Standby and commercial letters of credit 97 82 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. Because 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. 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. The types of credit we extend are as follows: Mortgage loan commitments including interest-rate locks. We enter into mortgage loan commitments, including interest-rate locks with our customers. These interest-rate lock commitments are considered to be derivative instruments and the fair value of these commitments is recorded in the Consolidated Statements of Financial Condition in other assets. For further information, see Note 8 - Derivative Financial Instruments. Warehouse loan commitments. 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. Commercial and industrial and other commercial commitments. Conditional commitments issued under various terms to lend funds to businesses 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. Because many of these commitments are expected to expire without being funded, the total commitment amounts do not necessarily represent future liquidity requirements. HELOC commitments. 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 or a decline in the collateral value. Other consumer commitments. Conditional commitments issued to accommodate the financial needs of customers. The commitments are made under various terms to lend funds to consumers, which include revolving credit agreements, term loan commitments and short-term borrowing agreements. Standby and commercial letters of credit. 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. These financial standby letters of credit irrevocably obligate the bank to pay a third party beneficiary when a customer fails to repay an outstanding loan or debt instrument. 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. See Note 4 - Loans Held-for-Investment for additional information. Supplemental executive retirement plan with former CEO.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
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. Valuation Hierarchy U.S. GAAP establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists, as discussed below. Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets in which we can participate as of the measurement date; Level 2 - Quoted prices for similar instruments in active markets, and other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 - Unobservable inputs that reflect our own assumptions about the assumptions that market participants would use in pricing an asset or liability. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the financial instruments carried at fair value by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy. September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 1,171 $ — $ 1,171 Agency - Residential — 837 — 837 Municipal obligations — 30 — 30 Corporate debt obligations — 77 — 77 Other MBS — 49 — 49 Certificate of deposits — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,349 — 5,349 Loans held-for-investment Residential first mortgage loans — 12 — 12 Home equity — — 2 2 Mortgage servicing rights — — 323 323 Derivative assets Rate lock commitments (fallout-adjusted) — — 257 257 Futures — — — — Mortgage-backed securities forwards — 9 — 9 Interest rate swaps and swaptions — 66 — 66 Total assets at fair value $ — $ 7,601 $ 582 $ 8,183 Derivative liabilities Mortgage backed securities forwards $ — $ (37) $ — $ (37) Interest rate swaps — (9) — (9) DOJ Liability — — (35) (35) Total liabilities at fair value $ — $ (46) $ (35) $ (81) December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 947 $ — $ 947 Agency - Residential — 1,015 — 1,015 Municipal obligations — 31 — 31 Corporate debt obligations — 77 — 77 Other MBS — 45 — 45 Certificate of Deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,219 — 5,219 Loans held-for-investment Residential first mortgage loans — 10 — 10 Home equity — — 2 2 Mortgage servicing rights — — 291 291 Derivative assets Rate lock commitments (fallout-adjusted) — — 34 34 Mortgage-backed securities forwards — 2 — 2 Interest rate swaps and swaptions — 26 — 26 Total assets at fair value $ — $ 7,373 $ 327 $ 7,700 Derivative liabilities Rate lock commitments (fallout-adjusted) $ — $ — $ (1) $ (1) Mortgage-backed securities forwards — (9) — (9) Interest rate swaps — (8) — (8) DOJ Liability — — (35) (35) Contingent consideration — — (10) (10) Total liabilities at fair value $ — $ (17) $ (46) $ (63) Fair Value Measurements Using Significant Unobservable Inputs The following tables include a roll forward of the Consolidated Statements of Financial Condition amounts (including the change in fair value) for financial instruments classified by us within Level 3 of the valuation hierarchy: Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Three Months Ended September 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 261 (23) 85 — — — 323 Rate lock commitments (net) (2)(3) 205 90 333 — — (371) 257 Totals $ 468 $ 67 $ 418 $ — $ — $ (371) $ 582 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (27) — — — 27 — — Totals $ (62) $ — $ — $ — $ 27 $ — $ (35) Three Months Ended September 30, 2019 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 316 (58) 39 (12) — — 285 Rate lock commitments (net) (2)(3) 50 20 113 — — (133) 50 Totals $ 368 $ (38) $ 152 $ (12) $ — $ (133) $ 337 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (7) (4) — — 3 — (8) Totals $ (42) $ (4) $ — $ — $ 3 $ — $ (43) (1) There were no unrealized gains (losses) recorded in OCI during the three months ended September 30, 2020 and 2019. (2) We utilized swaptions, futures, 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 do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Nine Months Ended September 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 291 (131) 209 (46) — — 323 Rate lock commitments (net) (2)(3) 34 274 805 — — (856) 257 Totals $ 327 $ 143 $ 1,014 $ (46) $ — $ (856) $ 582 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (10) (17) — — 27 — — Totals $ (45) $ (17) $ — $ — $ 27 $ — $ (35) Nine Months Ended September 30, 2019 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 290 (151) 203 (57) — — 285 Rate lock commitments (net) (2)(3) 20 75 245 — — (290) 50 Totals $ 312 $ (76) $ 448 $ (57) $ — $ (290) $ 337 Liabilities DOJ Liability $ (60) $ 25 $ — $ — $ — $ — $ (35) Contingent consideration (6) (5) — — 3 — (8) Totals $ (66) $ 20 $ — $ — $ 3 $ — $ (43) (1) There were no unrealized gains (losses) recorded in OCI during the nine months ended September 30, 2020 and 2019. (2) We utilized swaptions, futures, 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 do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) September 30, 2020 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 23.1% - 34.7% (28.9%) 1.7%-2.6% (2.2%) (1) Mortgage servicing rights $ 323 Discounted cash flows Option adjusted spread 3.7% - 21.2% (7.6%) 0% - 14.3% (11.4%) $67 - $95 ($82) (1) Rate lock commitments (net) $ 257 Consensus pricing Closing pull-through rate 80.6% - 87.2% (81.9%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) December 31, 2019 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 13.0% - 19.5% (16.2%) 2.7%-4.0% (3.3%) (1) Mortgage servicing rights $ 291 Discounted cash flows Option adjusted spread 2.4% - 20.4% (5.3%) 0% - 12.3% (10.6%) $67 - $95 ($84) (1) Rate lock commitments (net) $ 34 Consensus pricing Origination pull-through rate 80.0% - 87.2% (81.5%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below Contingent consideration $ (10) Discounted cash flows See description below See description below (2) (1) Unobservable inputs were weighted by their relative fair value of the instruments. (2) Unobservable inputs were not weighted as only one instrument exists. Recurring Significant Unobservable Inputs Home equity. The most significant unobservable inputs used in the fair value measurement of the home equity 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 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. MSRs. 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 result in a significantly lower (higher) fair value measurement. For September 30, 2020 and December 31, 2019, the weighted average life (in years) for the entire MSR portfolio was 3.9 and 4.1, respectively. DOJ Liability. The significant unobservable inputs used in the fair value measurement of the DOJ Liability are the discount rate, asset growth rate, return on assets, dividend rate and the potential ways we might be required to begin making DOJ Liability payments and our estimates of the likelihood of these outcomes, as further discussed in Note 15 - Legal Proceedings, Contingencies and Commitments. The DOJ Liability had a fair value adjustment of $25 million during the year ended December 31, 2019. This reduced the liability to $35 million based on changes in the probability of potential ways we might be required to begin making DOJ Liability payments and our estimates of the likelihood of these outcomes. Our assessment of these outcomes reflect a reduced likelihood, and longer timing, for potential future payments. Rate lock commitments. 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 result in a significantly higher (lower) fair value measurement. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets that are subject to measurement at fair value on a nonrecurring basis under certain conditions. The following table presents assets measured at fair value on a nonrecurring basis: Total (1) Level 2 Level 3 Losses (Dollars in millions) September 30, 2020 Loans held-for-sale (2) $ 14 $ 14 $ — $ (1) Impaired loans held-for-investment (2) Residential first mortgage loans 21 — 21 (3) Repossessed assets (3) 6 — 6 (3) Totals $ 41 $ 14 $ 27 $ (7) December 31, 2019 Loans held-for-sale (2) $ 6 $ 6 $ — $ (1) Impaired loans held-for-investment (2) Residential first mortgage loans 14 — 14 (5) Repossessed assets (3) 10 — 10 (3) Totals $ 30 $ 6 $ 24 $ (9) (1) The fair values are determined at various dates dependent upon when certain conditions were met requiring fair value measurement. (2) Gains (losses) reflect fair value adjustments on assets for which we did not elect the fair value option. (3) Gains (losses) reflect write downs of repossessed assets based on the estimated fair value of the specific assets. The following table presents the quantitative information about nonrecurring Level 3 fair value financial instruments and the fair value measurements: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) September 30, 2020 Impaired loans held-for-investment Residential first mortgage loans $ 21 Fair value of collateral Loss severity discount 0% - 100% (12.4%) (1) Repossessed assets $ 6 Fair value of collateral Loss severity discount 0% - 96.3% (31.8%) (1) December 31, 2019 Impaired loans held-for-investment Residential first mortgage loans $ 14 Fair value of collateral Loss severity discount 25% - 30% (25.9%) (1) Repossessed assets $ 10 Fair value of collateral Loss severity discount 0% - 100% (17.1%) (1) (1) Unobservable inputs were weighted by their relative fair value of the instruments. 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: September 30, 2020 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 280 $ 280 $ 280 $ — $ — Investment securities available-for-sale 2,165 2,165 — 2,165 — Investment securities held-to-maturity 440 458 — 458 — Loans held-for-sale 5,372 5,372 — 5,372 — Loans held-for-investment 16,476 16,266 — 12 16,254 Loans with government guarantees 2,500 2,480 — 2,480 — Mortgage servicing rights 323 323 — — 323 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 355 355 — 355 — Repossessed assets 6 6 — — 6 Other assets, foreclosure claims 22 22 — 22 — Derivative financial instruments, assets 332 332 — 75 257 Liabilities Retail deposits Demand deposits and savings accounts $ (8,223) $ (7,634) $ — $ (7,634) $ — Certificates of deposit (1,525) (1,539) — (1,539) — Wholesale deposits (1,034) (1,053) — (1,053) — Government deposits (1,748) (1,703) — (1,703) — Company controlled deposits (7,416) (7,377) — (7,377) — Federal Home Loan Bank advances and other (3,426) (3,455) — (3,455) — Long-term debt (493) (449) — (449) — DOJ Liability (35) (35) — — (35) Contingent consideration — — — — — Derivative financial instruments, liabilities (46) (46) — (46) — December 31, 2019 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 426 $ 426 $ 426 $ — $ — Investment securities available-for-sale 2,116 2,116 — 2,116 — Investment securities held-to-maturity 598 599 — 599 — Loans held-for-sale 5,258 5,258 — 5,258 — Loans held-for-investment 12,129 12,031 — 10 12,021 Loans with government guarantees 736 707 — 707 — Mortgage servicing rights 291 291 — — 291 Federal Home Loan Bank stock 303 303 — 303 — Bank owned life insurance 349 349 — 349 — Repossessed assets 10 10 — — 10 Other assets, foreclosure claims 45 45 — 45 — Derivative financial instruments, assets 62 88 — 54 34 Liabilities Retail deposits Demand deposits and savings accounts $ (6,811) $ (6,050) $ — $ (6,050) $ — Certificates of deposit (2,353) (2,368) — (2,368) — Wholesale deposits (633) (640) — (640) — Government deposits (1,213) (1,156) — (1,156) — Custodial deposits (4,136) (4,066) — (4,066) — Federal Home Loan Bank advances (4,815) (4,816) — (4,816) — Long-term debt (496) (462) — (462) — DOJ Liability (35) (35) — — (35) Contingent consideration (10) (10) — — (10) Derivative financial instruments, liabilities (18) (44) — (43) (1) Fair Value Option We elected the fair value option for certain items as discussed throughout the Notes to the Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure. Interest income on LHFS 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Assets Loans held-for-sale Net gain on loan sales $ 340 $ 97 $ 899 $ 272 Loans held-for-investment Other noninterest income $ — $ 1 $ — $ 1 Liabilities DOJ Liability Other noninterest income $ — $ — $ — $ 25 The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected: September 30, 2020 December 31, 2019 UPB Fair Value Fair Value Over / (Under) UPB UPB Fair Value Fair Value Over / (Under) UPB (Dollars in millions) Assets Nonaccrual loans Loans held-for-sale $ 6 $ 5 $ (1) $ 3 $ 3 $ — Loans held-for-investment 9 8 (1) 5 4 (1) Total nonaccrual loans $ 15 $ 13 $ (2) $ 8 $ 7 $ (1) Other performing loans Loans held-for-sale $ 5,125 $ 5,344 $ 219 $ 5,057 $ 5,216 $ 159 Loans held-for-investment 6 5 (1) 8 8 — Total other performing loans $ 5,131 $ 5,349 $ 218 $ 5,065 $ 5,224 $ 159 Total loans Loans held-for-sale $ 5,131 $ 5,349 $ 218 $ 5,060 $ 5,219 $ 159 Loans held-for-investment 15 13 (2) 13 12 (1) Total loans $ 5,146 $ 5,362 $ 216 $ 5,073 $ 5,231 $ 158 Liabilities DOJ Liability (1) $ (118) $ (35) $ 83 $ (118) $ (35) $ 83

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Segment Information	Segment Information Our operations are conducted through three operating segments: Community Banking, Mortgage Originations, and Mortgage Servicing. The Other segment 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 are 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. As a result of Management's evaluation of our segments, effective January 1, 2020, certain departments have been re-aligned between the Community Banking and Mortgage Originations. Specifically, a majority of the residential mortgage HFI portfolio is now part of the Mortgage Originations segment. The income and expenses relating to these changes are reflected in our financial statements and all prior period segment financial information has been recast to conform to the current presentation. The Community Banking segment originates loans, provides deposits and fee based services to consumer, business, and mortgage lending customers through its Branch Banking, Business Banking and Commercial Banking, Government Banking and Warehouse Lending. Products offered through these groups include checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, commercial loans, commercial real estate loans, equipment finance and leasing, home builder finance loans and warehouse lines of credit. Other financial services available include consumer and corporate card services, customized treasury management solutions, merchant services and capital markets services such as loan syndications, and investment and insurance products and services. The interest income on LHFI is recognized in the Community Banking segment, excluding residential first mortgages and newly originated home equity products within the Mortgage Originations segment. The Mortgage Originations segment originates and acquires one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. These loans are originated through mortgage branches, call centers, the Internet and third party counterparties. The Mortgage Originations segment recognizes interest income on loans that are held for sale and the gains from sales associated with these loans, along with the interest income on residential mortgages and newly originated home equity products within LHFI. The Mortgage Servicing segment services and subservices mortgage and other consumer loans for others on a fee for service basis and may also collect ancillary fees and earn income through the use of noninterest-bearing escrows. Revenue for those serviced and subserviced loans is earned on a contractual fee basis, with the fees varying based on our responsibilities and the status of the underlying loans. The Mortgage Servicing segment also services loans for our LHFI portfolio and our own LHFS portfolio in the Mortgage Originations segment, for which it earns revenue via an intercompany service fee allocation. The Other segment includes the treasury functions, which include the impact of interest rate risk management, balance sheet funding activities and the administration of the investment securities portfolios, as well as miscellaneous other expenses of a corporate nature. 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 Community Banking, Mortgage Originations or Mortgage Servicing operating segments. Revenues are comprised of net interest income (before the provision (benefit) for credit losses) and noninterest income. Noninterest expenses and a majority of provision (benefit) for income taxes, are allocated to each operating segment. Provision for credit losses is allocated to segments based on net charge offs and changes in outstanding balances. In contrast, the level of the consolidated provision for credit losses is determined based on an allowance model using the methodologies described in Item 2 – MD&A. The net effect of the credit provision is recorded in the Other segment. Allocation methodologies may be subject to periodic adjustment as the internal management accounting system is revised and the business or product lines within the segments change. The following tables present financial information by business segment for the periods indicated: Three Months Ended September 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 158 $ 49 $ 5 $ (32) $ 180 Provision (benefit) for credit losses (2) (3) — 37 32 Net interest income after provision (benefit) for credit losses 160 52 5 (69) 148 Net gain on loan sales 2 344 — — 346 Loan fees and charges — 29 16 — 45 Net return on mortgage servicing rights — 12 — — 12 Loan administrative (expense) income (1) (10) 40 (3) 26 Other noninterest income 15 3 — 5 23 Total noninterest income 16 378 56 2 452 Compensation and benefits 28 42 12 41 123 Commissions 1 71 — — 72 Loan processing expense 1 15 8 — 24 Other noninterest expense 63 32 21 (30) 86 Total noninterest expense 93 160 41 11 305 Income (loss) before indirect overhead allocations and income taxes 83 270 20 (78) 295 Indirect overhead allocation income (expense) (11) (18) (4) 33 — Provision (benefit) for income taxes 15 53 3 2 73 Net income (loss) $ 57 $ 199 $ 13 $ (47) $ 222 Intersegment (expense) revenue $ (22) $ (12) $ 10 $ 24 $ — Average balances Loans held-for-sale $ — $ 5,602 $ — $ — $ 5,602 Loans with government guarantees — 2,122 — — 2,122 Loans held-for-investment (2) 12,311 2,498 — 30 14,839 Total assets 12,603 11,195 78 4,401 28,277 Deposits 11,265 — 7,329 967 19,561 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Three Months Ended September 30, 2019 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 105 $ 37 $ 5 $ (1) $ 146 Provision (benefit) for credit losses — (2) — 3 1 Net interest income after provision for credit losses 105 39 5 (4) 145 Net gain (loss) on loan sales (4) 114 — — 110 Loan fees and charges — 20 8 1 29 Net return on mortgage servicing rights — (2) — — (2) Loan administrative (expense) income (1) (7) 32 (19) 5 Other noninterest income 18 2 — 9 29 Total noninterest income 13 127 40 (9) 171 Compensation and benefits 27 29 7 35 98 Commissions — 37 — 1 38 Loan processing expense 1 10 10 1 22 Other noninterest expense 42 25 14 (1) 80 Total noninterest expense 70 101 31 36 238 Income (loss) before indirect overhead allocations and income taxes 48 65 14 (49) 78 Indirect overhead allocation income (expense) (10) (10) (4) 24 — Provision (benefit) for income taxes 8 11 2 (6) 15 Net income (loss) $ 30 $ 44 $ 8 $ (19) $ 63 Intersegment (expense) revenue $ (6) $ 8 $ 7 $ (9) $ — Average balances Loans held-for-sale $ 20 $ 3,766 $ — $ — $ 3,786 Loans with government guarantees — 574 — — 574 Loans held-for-investment (2) 11,681 33 — 29 11,743 Total assets 12,184 5,378 38 3,597 21,197 Deposits 10,513 — 4,556 748 15,817 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Nine Months Ended September 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 395 $ 147 $ 14 $ (60) $ 496 Provision (benefit) for credit losses 3 (8) — 153 148 Net interest income after provision (benefit) for credit losses 392 155 14 (213) 348 Net gain on loan sales 2 737 — — 739 Loan fees and charges 1 68 43 — 112 Net loss on mortgage servicing rights — 10 — — 10 Loan administrative (expense) income (2) (25) 112 (26) 59 Other noninterest income 43 5 — 20 68 Total noninterest income 44 795 155 (6) 988 Compensation and benefits 79 111 33 118 341 Commissions 2 160 — — 162 Loan processing expense 4 39 24 2 69 Other noninterest expense 231 114 57 (137) 265 Total noninterest expense 316 424 114 (17) 837 Income (loss) before indirect overhead allocations and income taxes 120 526 55 (202) 499 Indirect overhead allocation income (expense) (31) (45) (15) 91 — Provision (benefit) for income taxes 19 101 8 (13) 115 Net income (loss) $ 70 $ 380 $ 32 $ (98) $ 384 Intersegment (expense) revenue $ (97) $ (46) $ 27 $ 116 $ — Average balances Loans held-for-sale $ — $ 5,499 $ — $ — $ 5,499 Loans with government guarantees — 1,267 — — 1,267 Loans held-for-investment (2) 10,702 2,693 — 29 13,424 Total assets 11,100 10,539 65 4,288 25,992 Deposits 10,817 — 6,114 767 17,698 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Nine Months Ended September 30, 2019 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 296 $ 103 $ 11 $ — $ 410 Provision (benefit) for credit losses 17 (3) — 4 18 Net interest income after provision for credit losses 279 106 11 (4) 392 Net gain (loss) on loan sales (10) 243 — 1 234 Loan fees and charges 1 47 22 — 70 Net return on mortgage servicing rights — 9 — — 9 Loan administrative (expense) income (3) (16) 91 (50) 22 Other noninterest income 46 9 — 58 113 Total noninterest income 34 292 113 9 448 Compensation and benefits 77 79 19 100 275 Commissions 1 75 — — 76 Loan processing expense 5 23 30 2 60 Other noninterest expense 125 63 43 1 232 Total noninterest expense 208 240 92 103 643 Income (loss) before indirect overhead allocations and income taxes 105 158 32 (98) 197 Indirect overhead allocation income (expense) (30) (30) (13) 73 — Provision (benefit) for income taxes 16 26 4 (9) 37 Net income (loss) $ 59 $ 102 $ 15 $ (16) $ 160 Intersegment (expense) revenue $ (14) $ 19 $ 19 $ (24) $ — Average balances Loans held-for-sale $ 37 $ 3,495 $ — $ — $ 3,532 Loans with government guarantees — 511 — — 511 Loans held-for-investment (2) 10,465 22 — 29 10,516 Total assets 10,950 5,018 47 3,862 19,877 Deposits 10,247 — 3,536 522 14,305 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Adoption of New Accounting Standards We adopted the following ASU during the quarter ended September 30, 2020, which did not have a material impact to our financial statements: Standard Descriptions Effective Date ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity September 1, 2020

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Subordinated Notes On October 28, 2020, we issued $150 million of Subordinated Debt (the "Notes") with a maturity date of November 1, 2030. The Notes bear interest at a fixed rate of 4.125% through October 31, 2025, and a variable rate tied to SOFR thereafter until maturity. We have the option to redeem all or a part of the Notes beginning on November 1, 2025 and on any subsequent interest payment date. The Notes will qualify as Tier 2 capital for regulatory purposes.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards We adopted the following ASU during the quarter ended September 30, 2020, which did not have a material impact to our financial statements: Standard Descriptions Effective Date ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity September 1, 2020
Credit Quality	Credit Quality We utilize an internal risk rating system 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 full collection or liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. For home equity 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. Substandard loans may be placed on either accrual or non-accrual status. 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. Due to the high probability of loss, doubtful assets are placed on non-accrual. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as a 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 the asset even though partial recovery may be affected in the future. 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, and 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 based 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.
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.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Summary of Investment Securities	The following table presents our AFS and HTM investment securities: Amortized Cost Gross Unrealized Gross Unrealized Fair Value (Dollars in millions) September 30, 2020 Available-for-sale securities Agency - Commercial $ 1,126 $ 45 $ — $ 1,171 Agency - Residential 806 31 — 837 Corporate debt obligations 76 1 — 77 Municipal obligations 29 1 — 30 Other MBS 49 — — 49 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 2,087 $ 78 $ — $ 2,165 Held-to-maturity securities Agency - Commercial $ 221 $ 8 $ — $ 229 Agency - Residential 219 10 — 229 Total held-to-maturity securities (1) $ 440 $ 18 $ — $ 458 December 31, 2019 Available-for-sale securities Agency - Commercial $ 948 $ 2 $ (3) $ 947 Agency - Residential 1,015 4 (4) 1,015 Corporate debt obligations 76 1 — 77 Municipal obligations 31 — — 31 Other MBS 44 1 — 45 Certificate of Deposits 1 — — 1 Total available-for-sale securities (1) $ 2,115 $ 8 $ (7) $ 2,116 Held-to-maturity securities Agency - Commercial $ 306 $ — $ (1) $ 305 Agency - Residential 292 3 (1) 294 Total held-to-maturity securities (1) $ 598 $ 3 $ (2) $ 599 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at September 30, 2020 or December 31, 2019.
Summary of Unrealized Loss Positions on Investment Securities - Held-to-Maturity	The following table summarizes the unrealized loss positions on available-for-sale and held-to-maturity investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) September 30, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 4 1 $ — Municipal obligations $ — — $ — $ 6 1 $ — Corporate debt obligations $ — — $ — $ 13 4 $ — Other mortgage-backed securities $ — — $ — $ — 1 $ — Held-to-maturity securities Agency - Residential $ — — $ — $ 5 2 $ — December 31, 2019 Available-for-sale securities Agency - Commercial $ 148 17 $ (3) $ 303 19 $ — Agency - Residential $ 266 26 $ (3) $ 148 14 $ (1) Municipal obligations $ 8 3 $ — $ — — $ — Held-to-maturity securities Agency - Commercial $ 148 13 $ (1) $ 85 6 $ — Agency - Residential $ 35 7 $ (1) $ 38 10 $ —
Summary of Unrealized Loss Positions on Investment Securities - Available-for-Sale	The following table summarizes the unrealized loss positions on available-for-sale and held-to-maturity investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) September 30, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 4 1 $ — Municipal obligations $ — — $ — $ 6 1 $ — Corporate debt obligations $ — — $ — $ 13 4 $ — Other mortgage-backed securities $ — — $ — $ — 1 $ — Held-to-maturity securities Agency - Residential $ — — $ — $ 5 2 $ — December 31, 2019 Available-for-sale securities Agency - Commercial $ 148 17 $ (3) $ 303 19 $ — Agency - Residential $ 266 26 $ (3) $ 148 14 $ (1) Municipal obligations $ 8 3 $ — $ — — $ — Held-to-maturity securities Agency - Commercial $ 148 13 $ (1) $ 85 6 $ — Agency - Residential $ 35 7 $ (1) $ 38 10 $ —
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity	The following table shows the amortized cost and estimated fair value of securities by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-Maturity Amortized Fair Weighted Average Amortized Fair Weighted Average (Dollars in millions) September 30, 2020 Due in one year or less $ 5 $ 5 2.24 % $ — $ — — % Due after one year through five years 8 8 2.71 % 8 8 2.52 % Due after five years through 10 years 108 111 4.23 % 8 8 2.35 % Due after 10 years 1,966 2,041 2.38 % 424 442 2.34 % Total $ 2,087 $ 2,165 $ 440 $ 458

Loans Held-for-Investment (Tabl

Loans Held-for-Investment (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Summary of Loans Held-for-Investment and UPB of Loan Sales and Purchases in the Loans Held-for-Investment Portfolio	The following table presents our loans held-for-investment: September 30, 2020 December 31, 2019 (Dollars in millions) Consumer loans Residential first mortgage $ 2,472 $ 3,154 Home equity 924 1,024 Other 973 729 Total consumer loans 4,369 4,907 Commercial loans Commercial real estate 2,996 2,828 Commercial and industrial 1,520 1,634 Warehouse lending 7,591 2,760 Total commercial loans 12,107 7,222 Total loans held-for-investment $ 16,476 $ 12,129 The following table presents the UPB of our loan sales and purchases in the loans held-for-investment portfolio: Nine Months Ended September 30, 2020 2019 (Dollars in millions) Loans Sold (1) Performing loans $ 436 $ 166 Total loans sold $ 436 $ 166 Net gain associated with loan sales (2) $ 3 $ 2 Loans Purchased Home equity $ — $ 199 Other consumer (3) 63 51 Total loans purchased $ 63 $ 250 Premium associated with loans purchased $ — $ 9 (1) Upon a change in our intent, the loans were transferred to LHFS and subsequently sold. (2) Recorded in net gain on loan sales on Consolidated Statements of Operations.
Changes in ALLL and Method of Evaluation by Class of Loan	The following table presents changes in the allowance for loan losses, by class of loan: Residential Home Equity Other Commercial Commercial Warehouse Total (Dollars in millions) Three Months Ended September 30, 2020 Beginning balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 Provision (6) 1 4 6 19 4 28 Charge-offs (2) (1) (1) — — — (4) Recoveries — 1 1 — — — 2 Ending allowance balance $ 52 $ 29 $ 38 $ 89 $ 42 $ 5 $ 255 Three Months Ended September 30, 2019 Beginning balance $ 26 $ 16 $ 5 $ 35 $ 23 $ 5 $ 110 Provision (benefit) 2 — 3 (2) (2) — 1 Charge-offs (1) (1) (2) — — — (4) Recoveries 1 1 — — 1 — 3 Ending allowance balance $ 28 $ 16 $ 6 $ 33 $ 22 $ 5 $ 110 Nine Months Ended September 30, 2020 Beginning balance, prior to adoption of ASC 326 $ 22 $ 14 $ 6 $ 38 $ 22 $ 5 $ 107 Impact of adopting ASC 326 25 12 10 (14) (6) (4) 23 Provision 10 3 24 65 26 4 132 Charge-offs (5) (3) (4) — — — (12) Recoveries — 3 2 — — — 5 Ending allowance balance $ 52 $ 29 $ 38 $ 89 $ 42 $ 5 $ 255 Nine Months Ended September 30, 2019 Beginning balance $ 38 $ 15 $ 3 $ 48 $ 18 $ 6 $ 128 Provision (benefit) (8) — 8 (15) 34 (1) 18 Charge-offs (3) (1) (5) — (31) — (40) Recoveries 1 2 — — 1 — 4 Ending allowance balance $ 28 $ 16 $ 6 $ 33 $ 22 $ 5 $ 110 (1) Includes loans with government guarantees.
Aging Analysis of Past Due and Current Loans	The following table sets forth the LHFI aging analysis of past due and current loans: 30-59 Days 60-89 Days 90 Days or Total Current Total LHFI (3) (4) (Dollars in millions) September 30, 2020 Consumer loans Residential first mortgage $ 5 $ 3 $ 30 $ 38 $ 2,434 $ 2,472 Home equity 1 — 4 5 919 924 Other 3 1 2 6 967 973 Total consumer loans 9 4 36 49 4,320 4,369 Commercial loans Commercial real estate — — — — 2,996 2,996 Commercial and industrial — — 10 10 1,510 1,520 Warehouse lending — — — — 7,591 7,591 Total commercial loans — — 10 10 12,097 12,107 Total loans (2) $ 9 $ 4 $ 46 $ 59 $ 16,417 $ 16,476 December 31, 2019 Consumer loans Residential first mortgage $ 5 $ 4 $ 21 $ 30 $ 3,124 $ 3,154 Home Equity 1 — 4 5 1,019 1,024 Other 3 1 1 5 724 729 Total consumer loans 9 5 26 40 4,867 4,907 Commercial loans Commercial real estate — — — — 2,828 2,828 Commercial and industrial — — — — 1,634 1,634 Warehouse lending — — — — 2,760 2,760 Total commercial loans — — — — 7,222 7,222 Total loans (2) $ 9 $ 5 $ 26 $ 40 $ 12,089 $ 12,129 (1) Includes less than 90 day past due performing loans which are deemed nonaccrual. Interest is not being accrued on these loans. (2) Includes $8 million and $4 million of past due loans accounted for under the fair value option as of September 30, 2020 and December 31, 2019, respectively. (3) Collateral dependent loans totaled $74 million at September 30, 2020 and $54 million at December 31, 2019, respectively. The majority of these loans are secured by real estate.
Summary of TDRs by Type and Performing Status and Newly Modified TDRs	The following table provides a summary of TDRs by type and performing status: TDRs Performing Nonperforming Total (Dollars in millions) September 30, 2020 Consumer loans Residential first mortgage $ 20 $ 7 $ 27 Home equity 14 2 16 Commercial Real Estate 5 — 5 Total TDRs (1)(2) $ 39 $ 9 $ 48 December 31, 2019 Consumer loans Residential first mortgage $ 20 $ 8 $ 28 Home Equity 18 2 20 Total TDRs (1)(2) $ 38 $ 10 $ 48 (1) Allowance for loan losses on TDR loans totaled $5 million and $8 million at September 30, 2020 and December 31, 2019, respectively. (2) Includes $2 million of TDR loans accounted for under the fair value option at September 30, 2020 and December 31, 2019. The following table provides a summary of newly modified TDRs: New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) (Dollars in millions) Three Months Ended September 30, 2020 Residential first mortgages 1 $ — $ — Home equity (2)(3) 1 — — Consumer 1 — — Total TDR loans 3 $ — $ — Three Months Ended September 30, 2019 Residential first mortgages 4 $ 1 $ 1 Total TDR loans 4 $ 1 $ 1 Nine Months Ended September 30, 2020 Residential first mortgages 6 $ 1 $ 1 Home equity (2)(3) 3 — — Consumer 2 — — Commercial Real Estate 1 5 5 Total TDR loans 12 $ 6 $ 6 Nine Months Ended September 30, 2019 Residential first mortgages 6 $ 1 $ 1 Home equity (2)(3) 4 1 1 Total TDR loans 10 $ 2 $ 2 (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) Home equity post-modification UPB reflects write downs. (3) Includes loans carried at the fair value option.
Loan Credit Quality Indicators	The following table presents the amortized cost in residential and consumer loans based on payment activity: Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Term Loans Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 256 $ 630 $ 272 $ 348 $ 308 $ 483 $ 105 $ 8 $ 2,410 $ 3,107 Watch — 1 — 2 — 16 — — 19 23 Substandard — 4 6 2 — 17 — 1 30 15 Home Equity Pass 6 37 16 7 2 12 799 29 908 1,002 Watch — — — — — 12 — — 12 16 Substandard — — — — — 1 1 — 2 3 Other Consumer Pass 226 345 165 4 2 7 218 5 972 727 Watch — — — — — — — — — 1 Substandard — — 1 — — — — — 1 1 Total Consumer Loans (1) $ 488 $ 1,017 $ 460 $ 363 $ 312 $ 548 $ 1,123 $ 43 $ 4,354 $ 4,895 (1) Excludes loans carried under the fair value option The following table presents the amortized cost in residential and consumer loans based on credit scores: Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 151 $ 323 $ 141 $ 241 $ 228 $ 272 $ 61 $ 2 $ 1,419 700-750 79 212 106 95 73 148 30 5 748 <700 26 100 31 16 7 96 14 2 292 Home Equity >750 2 11 6 3 — 7 358 4 391 700-750 2 14 5 3 1 9 319 14 367 <700 2 12 5 1 1 9 123 11 164 Other Consumer >750 160 220 87 1 — 5 200 5 678 700-750 61 114 65 3 2 2 18 — 265 <700 5 11 14 — — — — — 30 Total Consumer Loans (1) $ 488 $ 1,017 $ 460 $ 363 $ 312 $ 548 $ 1,123 $ 43 $ 4,354 (1) Excludes loans carried under the fair value option Loan-to-value ratios primarily impact the allowance on mortgages within the consumer loan portfolio. The following table presents the amortized cost in residential first mortgages and home equity based on loan-to-value ratios: Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential first mortgage >90 $ 53 $ 286 $ 142 $ 39 $ 3 $ 21 $ — $ — $ 544 71-90 122 213 77 123 82 267 — — 884 55-70 64 78 29 99 121 140 — — 531 <55 17 58 30 91 102 88 105 9 500 Home Equity >90 — — — 2 1 11 1 — 15 71-90 4 29 12 4 1 10 612 21 693 <=70 2 8 4 1 — 4 187 8 214 Total (1) $ 262 $ 672 $ 294 $ 359 $ 310 $ 541 $ 905 $ 38 $ 3,381 (1) Excludes loans carried under the fair value option Based on the most recent analysis performed, the amortized cost basis, by risk category for each class of loans within the commercial portfolio is as follows: Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Amortized Cost Basis by Closing Year As of September 30, 2020 2020 2019 2018 2017 2016 Prior Commercial Loans (Dollars in million) Commercial real estate Pass $ 249 $ 978 $ 466 $ 452 $ 325 $ 239 $ (1) $ — $ 2,708 $ 2,794 Watch 20 14 81 44 28 31 — — 218 24 Special mention 4 9 16 — 10 — — — 39 5 Substandard — 3 3 25 — — — — 31 5 Commercial and industrial Pass 212 494 185 188 107 116 20 — 1,322 1,533 Watch 2 46 26 25 — 1 — — 100 72 Special mention 2 13 13 17 — 5 — — 50 24 Substandard 21 1 16 10 — — — — 48 5 Warehouse Pass — — — — — — 7,381 — 7,381 2,556 Watch — — — — — — 195 — 195 189 Special mention — — — — — — 15 — 15 15 Substandard — — — — — — — — — — Total commercial loans $ 510 $ 1,558 $ 806 $ 761 $ 470 $ 392 $ 7,610 $ — $ 12,107 $ 7,222

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	9 Months Ended
	Sep. 30, 2020
Transfers and Servicing [Abstract]
Changes in the Fair Value of Residential First Mortgage MSRs	Changes in the fair value of residential first mortgage MSRs were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Balance at beginning of period $ 261 $ 316 $ 291 $ 290 Additions from loans sold with servicing retained 85 39 209 203 Reductions from sales — (12) (46) (57) Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) (25) (30) (74) (60) Changes in estimates of fair value due to interest rate risk (1) (2) 2 (28) (57) (91) Fair value of MSRs at end of period $ 323 $ 285 $ 323 $ 285 (1) Changes in fair value are included within net return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes which we manage through the use of derivatives.
Summary of Adverse Changes to Weighted-Average Assumptions on the Fair Value of Servicing Rights	The following table summarizes the hypothetical effect on the fair value of servicing rights using adverse changes of 10 percent and 20 percent to the weighted average of certain significant assumptions used in valuing these assets: September 30, 2020 December 31, 2019 Fair value Fair value Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 7.61 % $ 316 $ 310 5.34 % $ 284 $ 280 Constant prepayment rate 11.36 % $ 300 $ 279 10.59 % $ 271 $ 257 Weighted average cost to service per loan $ 81.68 $ 320 $ 316 $ 84.41 $ 285 $ 282
Summary of Income and Fees	The following table summarizes income and fees associated with owned mortgage servicing rights: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Net return (loss) on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 30 $ 25 $ 75 $ 70 Decrease in MSR fair value due to pay-offs, pay-downs, (25) (30) (74) (60) Changes in fair value due to interest rate risk 2 (28) (57) (91) Gain on MSR derivatives (2) 4 31 68 92 Net transaction costs 1 — (2) (2) Total return (loss) included in net return on mortgage servicing rights $ 12 $ (2) $ 10 $ 9 (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The following table summarizes income and fees associated with our mortgage loans subserviced for others: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Loan administration income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 33 $ 27 $ 94 $ 77 Charges on subserviced custodial balances (2) (3) (20) (26) (50) Other servicing charges (4) (2) (9) (5) Total income on mortgage loans subserviced, included in loan administration $ 26 $ 5 $ 59 $ 22 (1) Servicing fees are recorded on an accrual basis. Late fees are recorded on cash basis. (2) Charges on subserviced custodial balances represent interest due to MSR owner.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional Amount, Estimated Fair Value and Maturity and Net Gain (Loss) Recognized on Designated Instruments	The following tables present the notional amount, estimated fair value and maturity of our derivative financial instruments: September 30, 2020 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Assets Interest rate swaps on custodial deposits $ 800 $ 1 2026-2027 Derivatives in fair value hedge relationships: Assets Interest rate swaps on AFS securities $ 450 $ — 2022-2025 Interest rate swaps on HFI residential first mortgages 100 — 2024 Total derivative assets $ 550 $ — Derivatives not designated as hedging instruments: Assets Futures $ 1,132 $ — 2020-2023 Mortgage-backed securities forwards 3,471 9 2020 Rate lock commitments 12,015 257 2020-2021 Interest rate swaps 724 65 2020-2030 Total derivative assets $ 17,342 $ 331 Liabilities Mortgage-backed securities forwards $ 8,008 $ 37 2020 Rate lock commitments 169 — 2020-2021 Interest rate swaps and swaptions 2,030 9 2020-2050 Total derivative liabilities $ 10,207 $ 46 (1) Variation margin pledged to or received from a Central Counterparty Clearing House is considered settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. December 31, 2019 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in fair value hedge relationships: Assets Interest rate swaps on FHLB advances $ 200 $ — 2020 Interest rate swaps on AFS securities 100 — 2022 Total derivative assets $ 300 $ — Derivatives not designated as hedging instruments: Assets Futures $ 550 $ — 2020-2023 Mortgage-backed securities forwards 1,918 2 2020 Rate lock commitments 3,870 34 2020 Interest rate swaps 799 26 2020-2029 Total derivative assets $ 7,137 $ 62 Liabilities Mortgage-backed securities forwards $ 5,749 $ 9 2020 Rate lock commitments 229 1 2020 Interest rate swaps and swaptions 1,662 8 2020-2050 Total derivative liabilities $ 7,640 $ 18 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes.
Derivatives Subject to a Master Netting Arrangement	The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Netted in the Statements of Financial Condition Net Amount Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Gross Amount Financial Instruments Cash Collateral (Dollars in millions) September 30, 2020 Derivatives designated as hedging instruments: Assets Interest rate swaps on AFS securities $ — $ — $ — $ — $ 4 Interest rate swaps on custodial deposits 1 — 1 — 7 Interest rate swaps on HFI residential first mortgages — — — — 1 Total derivative assets $ 1 $ — $ 1 $ — $ 12 Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ — Total derivative liabilities $ — $ — $ — $ — $ — Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 9 $ — $ 9 $ — $ — Interest rate swaps 65 — 65 — — Futures — — — — — Total derivative assets $ 74 $ — $ 74 $ — $ — Liabilities Mortgage-backed securities forwards $ 37 $ — $ 37 $ — $ 39 Interest rate swaps and swaptions (1) 9 — 9 — 31 Total derivative liabilities $ 46 $ — $ 46 $ — $ 70 December 31, 2019 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 2 $ — $ 2 $ — $ — Interest rate swaps 26 — 26 — — Total derivative assets $ 28 $ — $ 28 $ — $ — Liabilities Mortgage-backed securities forwards $ 9 $ — $ 9 $ — $ 24 Interest rate swaps and swaptions (1) 8 — 8 — 39 Total derivative liabilities $ 17 $ — $ 17 $ — $ 63 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes.
Net Gain (Loss) Recognized in Income on Derivative Instruments	The following table presents net gain recognized in income on derivative instruments, net of the impact of offsetting positions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Derivatives not designated as hedging instruments: Location of gain (loss) Futures Net loss on mortgage servicing rights $ — $ — $ 1 $ (2) Interest rate swaps and swaptions Net gain (loss) on mortgage servicing rights (2) 28 39 71 Mortgage-backed securities forwards Net gain (loss) on mortgage servicing rights 5 3 28 23 Rate lock commitments and MSR forwards Net gain (loss) on loan sales 70 27 190 57 Forward commitments Other noninterest income — — — 2 Interest rate swaps (1) Other noninterest income — 2 1 3 Total derivative (loss) gain $ 73 $ 60 $ 259 $ 154 (1) Includes customer-initiated commercial interest rate swaps.

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Breakdown of FHLB Advances Outstanding	The following is a breakdown of our FHLB advances outstanding: September 30, 2020 December 31, 2019 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 1,555 0.20 % $ 3,695 1.61 % Other short-term borrowings (1) 671 0.11 % 470 1.64 % Total short-term Federal Home Loan Bank advances and other borrowings 2,226 4,165 Long-term fixed rate advances (2) 1,200 1.03 % 650 1.45 % Total long-term Federal Home Loan Bank advances 1,200 650 Total Federal Home Loan Bank advances and other borrowings $ 3,426 $ 4,815 (1) Includes borrowings under overnight federal funds purchased lines with other Federal Reserve member institutions. (2) There was no current portion of fixed rate advances at both September 30, 2020 and December 31, 2019.
Detailed Information on FHLB Advances and Other Borrowings	The following table contains detailed information on our FHLB advances and other borrowings: Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 (Dollars in millions) Maximum outstanding at any month end $ 4,388 $ 2,979 $ 6,841 $ 3,391 Average outstanding balance $ 3,528 $ 2,446 $ 4,234 $ 2,769 Average remaining borrowing capacity $ 5,494 $ 4,957 $ 5,249 $ 3,932 Weighted average interest rate 0.48 % 2.10 % 0.76 % 2.33 %
Maturity Dates of FHLB Advances and Other Borrowings	The following table outlines the maturity dates of our FHLB advances and other borrowings: September 30, 2020 (Dollars in millions) 2020 $ 2,226 2021 — 2022 200 2023 500 Thereafter 500 Total $ 3,426
Long-Term Debt, Net of Debt Issuance Costs	The following table presents long-term debt, net of debt issuance costs: September 30, 2020 December 31, 2019 Amount Interest Rate Amount Interest Rate (Dollars in millions) Senior Notes Senior notes, matures 2021 $ 246 6.125 % $ 249 6.125 % Trust Preferred Securities Floating Three Month LIBOR Plus: 3.25%, matures 2032 26 3.48 % 26 5.20 % 3.25%, matures 2033 26 3.53 % 26 5.24 % 3.25%, matures 2033 26 3.47 % 26 5.21 % 2.00%, matures 2035 26 2.28 % 26 3.99 % 2.00%, matures 2035 26 2.28 % 26 3.99 % 1.75%, matures 2035 51 2.00 % 51 3.64 % 1.50%, matures 2035 25 1.78 % 25 3.49 % 1.45%, matures 2037 25 1.70 % 25 3.34 % 2.50%, matures 2037 16 2.75 % 16 4.39 % Total Trust Preferred Securities 247 247 Total other long-term debt $ 493 $ 496

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Components of Accumulated Other Comprehensive Income	The following table sets forth the components in accumulated other comprehensive income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Investment Securities Beginning balance $ 56 $ (8) $ 1 $ (47) Unrealized gain — 18 72 61 Less: Tax provision — 5 17 15 Net unrealized gain — 13 55 46 Reclassifications out of AOCI (1) — — — 7 Less: Tax provision — — — 1 Net unrealized gain reclassified out of AOCI — — — 6 Other comprehensive income, net of tax — 13 55 52 Ending balance $ 56 $ 5 $ 56 $ 5 Cash Flow Hedges Beginning balance $ (10) $ — $ — $ — Unrealized loss — — (13) — Less: Tax benefit — — (3) — Net unrealized loss — — (10) — Reclassifications out of AOCI (1) — — — — Other comprehensive loss, net of tax — — (10) — Ending balance $ (10) $ — $ (10) $ — (1) Reclassifications are reported in noninterest income on the Consolidated Statements of Operations.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share of Common Stock	The following table sets forth the computation of basic and diluted earnings per share of common stock: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions, except share data) Net income applicable to common stockholders $ 222 $ 63 $ 384 $ 160 Weighted Average Shares Weighted average common shares outstanding 57,032,746 56,484,499 56,827,171 56,607,944 Effect of dilutive securities Stock-based awards 347,063 626,297 404,518 644,596 Weighted average diluted common shares $ 57,379,809 $ 57,110,796 $ 57,231,689 $ 57,252,540 Earnings per common share Basic earnings per common share $ 3.90 $ 1.12 $ 6.76 $ 2.83 Effect of dilutive securities Stock-based awards (0.02) (0.01) (0.05) (0.03) Diluted earnings per common share $ 3.88 $ 1.11 $ 6.71 $ 2.80

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	The following table summarizes restricted stock and restricted stock units activity: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Shares Weighted — Average Grant-Date Fair Value per Share Shares Weighted — Average Grant-Date Fair Value per Share Restricted Stock and Restricted Stock Units Non-vested balance at beginning of period 1,412,884 $ 29.72 1,399,127 $ 28.72 Granted 7,429 30.96 378,953 27.96 Vested (207,046) 26.48 (448,452) 25.50 Canceled and forfeited (133,394) 22.70 (249,755) 22.59 Non-vested balance at end of period 1,079,873 $ 31.21 1,079,873 $ 31.21

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Provision for Income Tax and Effective Tax Provision Rate	The following table presents our provision for income tax and effective tax provision rate: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Income before income taxes $ 295 $ 78 $ 499 $ 197 Provision for income taxes 73 15 115 37 Effective tax provision rate 24.7 % 18.4 % 23.0 % 18.6 %

Regulatory Matters (Tables)

Regulatory Matters (Tables)	9 Months Ended
	Sep. 30, 2020
Banking and Thrift, Other Disclosures [Abstract]
Regulatory Capital Ratios	The following tables present the regulatory capital ratios as of the dates indicated: Flagstar Bancorp Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,256 8.0 % $ 1,123 4.0 % $ 1,403 5.0 % Common equity Tier 1 capital (to RWA) $ 2,016 9.2 % $ 985 4.5 % $ 1,422 6.5 % Tier 1 capital (to RWA) $ 2,256 10.3 % $ 1,313 6.0 % $ 1,751 8.0 % Total capital (to RWA) $ 2,471 11.3 % $ 1,751 8.0 % $ 2,188 10.0 % December 31, 2019 Tier 1 capital (to adjusted avg. total assets) $ 1,720 7.6 % $ 909 4.0 % $ 1,136 5.0 % Common equity Tier 1 capital (to RWA) $ 1,480 9.3 % $ 715 4.5 % $ 1,033 6.5 % Tier 1 capital (to RWA) $ 1,720 10.8 % $ 953 6.0 % $ 1,271 8.0 % Total capital (to RWA) $ 1,830 11.5 % $ 1,271 8.0 % $ 1,589 10.0 % Flagstar Bank Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) September 30, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,212 7.9 % $ 1,122 4.0 % $ 1,403 5.0 % Common equity Tier 1 capital (to RWA) $ 2,212 10.1 % $ 985 4.5 % $ 1,422 6.5 % Tier 1 capital (to RWA) $ 2,212 10.1 % $ 1,313 6.0 % $ 1,751 8.0 % Total capital (to RWA) $ 2,427 11.1 % $ 1,751 8.0 % $ 2,188 10.0 % December 31, 2019 Tier 1 capital (to adjusted avg. total assets) $ 1,752 7.7 % $ 909 4.0 % $ 1,136 5.0 % Common equity Tier 1 capital (to RWA) $ 1,752 11.0 % $ 714 4.5 % $ 1,032 6.5 % Tier 1 capital (to RWA) $ 1,752 11.0 % $ 952 6.0 % $ 1,270 8.0 % Total capital (to RWA) $ 1,862 11.7 % $ 1,270 8.0 % $ 1,587 10.0 %

Legal Proceedings, Contingenc_2

Legal Proceedings, Contingencies and Commitments (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Summary of Contractual Amount of Significant Commitments	The following table is a summary of the contractual amount of significant commitments: September 30, 2020 December 31, 2019 (Dollars in millions) Commitments to extend credit Mortgage loan commitments including interest-rate locks $ 12,257 $ 4,099 Warehouse loan commitments 2,218 1,944 Commercial and industrial commitments 1,207 1,107 Other commercial commitments 1,653 2,015 HELOC commitments 562 558 Other consumer commitments 301 175 Standby and commercial letters of credit 97 82

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Financial Instruments Carried at Fair Value	The following tables present the financial instruments carried at fair value by caption on the Consolidated Statement of Financial Condition and by level in the valuation hierarchy. September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 1,171 $ — $ 1,171 Agency - Residential — 837 — 837 Municipal obligations — 30 — 30 Corporate debt obligations — 77 — 77 Other MBS — 49 — 49 Certificate of deposits — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,349 — 5,349 Loans held-for-investment Residential first mortgage loans — 12 — 12 Home equity — — 2 2 Mortgage servicing rights — — 323 323 Derivative assets Rate lock commitments (fallout-adjusted) — — 257 257 Futures — — — — Mortgage-backed securities forwards — 9 — 9 Interest rate swaps and swaptions — 66 — 66 Total assets at fair value $ — $ 7,601 $ 582 $ 8,183 Derivative liabilities Mortgage backed securities forwards $ — $ (37) $ — $ (37) Interest rate swaps — (9) — (9) DOJ Liability — — (35) (35) Total liabilities at fair value $ — $ (46) $ (35) $ (81) December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 947 $ — $ 947 Agency - Residential — 1,015 — 1,015 Municipal obligations — 31 — 31 Corporate debt obligations — 77 — 77 Other MBS — 45 — 45 Certificate of Deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,219 — 5,219 Loans held-for-investment Residential first mortgage loans — 10 — 10 Home equity — — 2 2 Mortgage servicing rights — — 291 291 Derivative assets Rate lock commitments (fallout-adjusted) — — 34 34 Mortgage-backed securities forwards — 2 — 2 Interest rate swaps and swaptions — 26 — 26 Total assets at fair value $ — $ 7,373 $ 327 $ 7,700 Derivative liabilities Rate lock commitments (fallout-adjusted) $ — $ — $ (1) $ (1) Mortgage-backed securities forwards — (9) — (9) Interest rate swaps — (8) — (8) DOJ Liability — — (35) (35) Contingent consideration — — (10) (10) Total liabilities at fair value $ — $ (17) $ (46) $ (63)
Roll Forward of Financial Instruments Classified as Level 3	The following tables include a roll forward of the Consolidated Statements of Financial Condition amounts (including the change in fair value) for financial instruments classified by us within Level 3 of the valuation hierarchy: Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Three Months Ended September 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 261 (23) 85 — — — 323 Rate lock commitments (net) (2)(3) 205 90 333 — — (371) 257 Totals $ 468 $ 67 $ 418 $ — $ — $ (371) $ 582 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (27) — — — 27 — — Totals $ (62) $ — $ — $ — $ 27 $ — $ (35) Three Months Ended September 30, 2019 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 316 (58) 39 (12) — — 285 Rate lock commitments (net) (2)(3) 50 20 113 — — (133) 50 Totals $ 368 $ (38) $ 152 $ (12) $ — $ (133) $ 337 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (7) (4) — — 3 — (8) Totals $ (42) $ (4) $ — $ — $ 3 $ — $ (43) (1) There were no unrealized gains (losses) recorded in OCI during the three months ended September 30, 2020 and 2019. (2) We utilized swaptions, futures, 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 do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Nine Months Ended September 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 291 (131) 209 (46) — — 323 Rate lock commitments (net) (2)(3) 34 274 805 — — (856) 257 Totals $ 327 $ 143 $ 1,014 $ (46) $ — $ (856) $ 582 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (10) (17) — — 27 — — Totals $ (45) $ (17) $ — $ — $ 27 $ — $ (35) Nine Months Ended September 30, 2019 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 290 (151) 203 (57) — — 285 Rate lock commitments (net) (2)(3) 20 75 245 — — (290) 50 Totals $ 312 $ (76) $ 448 $ (57) $ — $ (290) $ 337 Liabilities DOJ Liability $ (60) $ 25 $ — $ — $ — $ — $ (35) Contingent consideration (6) (5) — — 3 — (8) Totals $ (66) $ 20 $ — $ — $ 3 $ — $ (43) (1) There were no unrealized gains (losses) recorded in OCI during the nine months ended September 30, 2020 and 2019. (2) We utilized swaptions, futures, 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 do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets.
Quantitative Information about Recurring Level 3 Fair Value Instruments	The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) September 30, 2020 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 23.1% - 34.7% (28.9%) 1.7%-2.6% (2.2%) (1) Mortgage servicing rights $ 323 Discounted cash flows Option adjusted spread 3.7% - 21.2% (7.6%) 0% - 14.3% (11.4%) $67 - $95 ($82) (1) Rate lock commitments (net) $ 257 Consensus pricing Closing pull-through rate 80.6% - 87.2% (81.9%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) December 31, 2019 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 13.0% - 19.5% (16.2%) 2.7%-4.0% (3.3%) (1) Mortgage servicing rights $ 291 Discounted cash flows Option adjusted spread 2.4% - 20.4% (5.3%) 0% - 12.3% (10.6%) $67 - $95 ($84) (1) Rate lock commitments (net) $ 34 Consensus pricing Origination pull-through rate 80.0% - 87.2% (81.5%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below Contingent consideration $ (10) Discounted cash flows See description below See description below (2) (1) Unobservable inputs were weighted by their relative fair value of the instruments. (2) Unobservable inputs were not weighted as only one instrument exists.
Assets Measured at Fair Value on a Nonrecurring Basis	The following table presents assets measured at fair value on a nonrecurring basis: Total (1) Level 2 Level 3 Losses (Dollars in millions) September 30, 2020 Loans held-for-sale (2) $ 14 $ 14 $ — $ (1) Impaired loans held-for-investment (2) Residential first mortgage loans 21 — 21 (3) Repossessed assets (3) 6 — 6 (3) Totals $ 41 $ 14 $ 27 $ (7) December 31, 2019 Loans held-for-sale (2) $ 6 $ 6 $ — $ (1) Impaired loans held-for-investment (2) Residential first mortgage loans 14 — 14 (5) Repossessed assets (3) 10 — 10 (3) Totals $ 30 $ 6 $ 24 $ (9) (1) The fair values are determined at various dates dependent upon when certain conditions were met requiring fair value measurement. (2) Gains (losses) reflect fair value adjustments on assets for which we did not elect the fair value option. (3) Gains (losses) reflect write downs of repossessed assets based on the estimated fair value of the specific assets.
Quantitative Information about Nonrecurring Level 3 Fair Value Financial Instruments	The following table presents the quantitative information about nonrecurring Level 3 fair value financial instruments and the fair value measurements: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) September 30, 2020 Impaired loans held-for-investment Residential first mortgage loans $ 21 Fair value of collateral Loss severity discount 0% - 100% (12.4%) (1) Repossessed assets $ 6 Fair value of collateral Loss severity discount 0% - 96.3% (31.8%) (1) December 31, 2019 Impaired loans held-for-investment Residential first mortgage loans $ 14 Fair value of collateral Loss severity discount 25% - 30% (25.9%) (1) Repossessed assets $ 10 Fair value of collateral Loss severity discount 0% - 100% (17.1%) (1) (1) Unobservable inputs were weighted by their relative fair value of the instruments.
Carrying Amount and Estimated 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: September 30, 2020 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 280 $ 280 $ 280 $ — $ — Investment securities available-for-sale 2,165 2,165 — 2,165 — Investment securities held-to-maturity 440 458 — 458 — Loans held-for-sale 5,372 5,372 — 5,372 — Loans held-for-investment 16,476 16,266 — 12 16,254 Loans with government guarantees 2,500 2,480 — 2,480 — Mortgage servicing rights 323 323 — — 323 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 355 355 — 355 — Repossessed assets 6 6 — — 6 Other assets, foreclosure claims 22 22 — 22 — Derivative financial instruments, assets 332 332 — 75 257 Liabilities Retail deposits Demand deposits and savings accounts $ (8,223) $ (7,634) $ — $ (7,634) $ — Certificates of deposit (1,525) (1,539) — (1,539) — Wholesale deposits (1,034) (1,053) — (1,053) — Government deposits (1,748) (1,703) — (1,703) — Company controlled deposits (7,416) (7,377) — (7,377) — Federal Home Loan Bank advances and other (3,426) (3,455) — (3,455) — Long-term debt (493) (449) — (449) — DOJ Liability (35) (35) — — (35) Contingent consideration — — — — — Derivative financial instruments, liabilities (46) (46) — (46) — December 31, 2019 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 426 $ 426 $ 426 $ — $ — Investment securities available-for-sale 2,116 2,116 — 2,116 — Investment securities held-to-maturity 598 599 — 599 — Loans held-for-sale 5,258 5,258 — 5,258 — Loans held-for-investment 12,129 12,031 — 10 12,021 Loans with government guarantees 736 707 — 707 — Mortgage servicing rights 291 291 — — 291 Federal Home Loan Bank stock 303 303 — 303 — Bank owned life insurance 349 349 — 349 — Repossessed assets 10 10 — — 10 Other assets, foreclosure claims 45 45 — 45 — Derivative financial instruments, assets 62 88 — 54 34 Liabilities Retail deposits Demand deposits and savings accounts $ (6,811) $ (6,050) $ — $ (6,050) $ — Certificates of deposit (2,353) (2,368) — (2,368) — Wholesale deposits (633) (640) — (640) — Government deposits (1,213) (1,156) — (1,156) — Custodial deposits (4,136) (4,066) — (4,066) — Federal Home Loan Bank advances (4,815) (4,816) — (4,816) — Long-term debt (496) (462) — (462) — DOJ Liability (35) (35) — — (35) Contingent consideration (10) (10) — — (10) Derivative financial instruments, liabilities (18) (44) — (43) (1)
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in millions) Assets Loans held-for-sale Net gain on loan sales $ 340 $ 97 $ 899 $ 272 Loans held-for-investment Other noninterest income $ — $ 1 $ — $ 1 Liabilities DOJ Liability Other noninterest income $ — $ — $ — $ 25
Differences Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding	The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected: September 30, 2020 December 31, 2019 UPB Fair Value Fair Value Over / (Under) UPB UPB Fair Value Fair Value Over / (Under) UPB (Dollars in millions) Assets Nonaccrual loans Loans held-for-sale $ 6 $ 5 $ (1) $ 3 $ 3 $ — Loans held-for-investment 9 8 (1) 5 4 (1) Total nonaccrual loans $ 15 $ 13 $ (2) $ 8 $ 7 $ (1) Other performing loans Loans held-for-sale $ 5,125 $ 5,344 $ 219 $ 5,057 $ 5,216 $ 159 Loans held-for-investment 6 5 (1) 8 8 — Total other performing loans $ 5,131 $ 5,349 $ 218 $ 5,065 $ 5,224 $ 159 Total loans Loans held-for-sale $ 5,131 $ 5,349 $ 218 $ 5,060 $ 5,219 $ 159 Loans held-for-investment 15 13 (2) 13 12 (1) Total loans $ 5,146 $ 5,362 $ 216 $ 5,073 $ 5,231 $ 158 Liabilities DOJ Liability (1) $ (118) $ (35) $ 83 $ (118) $ (35) $ 83

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Financial Information by Business Segment	The following tables present financial information by business segment for the periods indicated: Three Months Ended September 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 158 $ 49 $ 5 $ (32) $ 180 Provision (benefit) for credit losses (2) (3) — 37 32 Net interest income after provision (benefit) for credit losses 160 52 5 (69) 148 Net gain on loan sales 2 344 — — 346 Loan fees and charges — 29 16 — 45 Net return on mortgage servicing rights — 12 — — 12 Loan administrative (expense) income (1) (10) 40 (3) 26 Other noninterest income 15 3 — 5 23 Total noninterest income 16 378 56 2 452 Compensation and benefits 28 42 12 41 123 Commissions 1 71 — — 72 Loan processing expense 1 15 8 — 24 Other noninterest expense 63 32 21 (30) 86 Total noninterest expense 93 160 41 11 305 Income (loss) before indirect overhead allocations and income taxes 83 270 20 (78) 295 Indirect overhead allocation income (expense) (11) (18) (4) 33 — Provision (benefit) for income taxes 15 53 3 2 73 Net income (loss) $ 57 $ 199 $ 13 $ (47) $ 222 Intersegment (expense) revenue $ (22) $ (12) $ 10 $ 24 $ — Average balances Loans held-for-sale $ — $ 5,602 $ — $ — $ 5,602 Loans with government guarantees — 2,122 — — 2,122 Loans held-for-investment (2) 12,311 2,498 — 30 14,839 Total assets 12,603 11,195 78 4,401 28,277 Deposits 11,265 — 7,329 967 19,561 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Three Months Ended September 30, 2019 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 105 $ 37 $ 5 $ (1) $ 146 Provision (benefit) for credit losses — (2) — 3 1 Net interest income after provision for credit losses 105 39 5 (4) 145 Net gain (loss) on loan sales (4) 114 — — 110 Loan fees and charges — 20 8 1 29 Net return on mortgage servicing rights — (2) — — (2) Loan administrative (expense) income (1) (7) 32 (19) 5 Other noninterest income 18 2 — 9 29 Total noninterest income 13 127 40 (9) 171 Compensation and benefits 27 29 7 35 98 Commissions — 37 — 1 38 Loan processing expense 1 10 10 1 22 Other noninterest expense 42 25 14 (1) 80 Total noninterest expense 70 101 31 36 238 Income (loss) before indirect overhead allocations and income taxes 48 65 14 (49) 78 Indirect overhead allocation income (expense) (10) (10) (4) 24 — Provision (benefit) for income taxes 8 11 2 (6) 15 Net income (loss) $ 30 $ 44 $ 8 $ (19) $ 63 Intersegment (expense) revenue $ (6) $ 8 $ 7 $ (9) $ — Average balances Loans held-for-sale $ 20 $ 3,766 $ — $ — $ 3,786 Loans with government guarantees — 574 — — 574 Loans held-for-investment (2) 11,681 33 — 29 11,743 Total assets 12,184 5,378 38 3,597 21,197 Deposits 10,513 — 4,556 748 15,817 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Nine Months Ended September 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 395 $ 147 $ 14 $ (60) $ 496 Provision (benefit) for credit losses 3 (8) — 153 148 Net interest income after provision (benefit) for credit losses 392 155 14 (213) 348 Net gain on loan sales 2 737 — — 739 Loan fees and charges 1 68 43 — 112 Net loss on mortgage servicing rights — 10 — — 10 Loan administrative (expense) income (2) (25) 112 (26) 59 Other noninterest income 43 5 — 20 68 Total noninterest income 44 795 155 (6) 988 Compensation and benefits 79 111 33 118 341 Commissions 2 160 — — 162 Loan processing expense 4 39 24 2 69 Other noninterest expense 231 114 57 (137) 265 Total noninterest expense 316 424 114 (17) 837 Income (loss) before indirect overhead allocations and income taxes 120 526 55 (202) 499 Indirect overhead allocation income (expense) (31) (45) (15) 91 — Provision (benefit) for income taxes 19 101 8 (13) 115 Net income (loss) $ 70 $ 380 $ 32 $ (98) $ 384 Intersegment (expense) revenue $ (97) $ (46) $ 27 $ 116 $ — Average balances Loans held-for-sale $ — $ 5,499 $ — $ — $ 5,499 Loans with government guarantees — 1,267 — — 1,267 Loans held-for-investment (2) 10,702 2,693 — 29 13,424 Total assets 11,100 10,539 65 4,288 25,992 Deposits 10,817 — 6,114 767 17,698 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment. Nine Months Ended September 30, 2019 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 296 $ 103 $ 11 $ — $ 410 Provision (benefit) for credit losses 17 (3) — 4 18 Net interest income after provision for credit losses 279 106 11 (4) 392 Net gain (loss) on loan sales (10) 243 — 1 234 Loan fees and charges 1 47 22 — 70 Net return on mortgage servicing rights — 9 — — 9 Loan administrative (expense) income (3) (16) 91 (50) 22 Other noninterest income 46 9 — 58 113 Total noninterest income 34 292 113 9 448 Compensation and benefits 77 79 19 100 275 Commissions 1 75 — — 76 Loan processing expense 5 23 30 2 60 Other noninterest expense 125 63 43 1 232 Total noninterest expense 208 240 92 103 643 Income (loss) before indirect overhead allocations and income taxes 105 158 32 (98) 197 Indirect overhead allocation income (expense) (30) (30) (13) 73 — Provision (benefit) for income taxes 16 26 4 (9) 37 Net income (loss) $ 59 $ 102 $ 15 $ (16) $ 160 Intersegment (expense) revenue $ (14) $ 19 $ 19 $ (24) $ — Average balances Loans held-for-sale $ 37 $ 3,495 $ — $ — $ 3,532 Loans with government guarantees — 511 — — 511 Loans held-for-investment (2) 10,465 22 — 29 10,516 Total assets 10,950 5,018 47 3,862 19,877 Deposits 10,247 — 3,536 522 14,305 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to loans held-for-investment.

Investment Securities - Summary

Investment Securities - Summary of Investment Securities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Schedule of Trading and Available-for-sale Securities [Line Items]
Securities of a single issuer that exceeded 10% of stockholders' equity	$ 0	$ 0
Available-for-sale securities
Amortized Cost	2,087,000,000	2,115,000,000
Gross Unrealized Gains	78,000,000	8,000,000
Gross Unrealized Losses	0	(7,000,000)
Fair Value	2,165,000,000	2,116,000,000
Held-to-maturity securities
Amortized Cost	440,000,000	598,000,000
Gross Unrealized Gains	18,000,000	3,000,000
Gross Unrealized Losses	0	(2,000,000)
Fair Value	458,000,000	599,000,000
Agency - Commercial
Available-for-sale securities
Amortized Cost	1,126,000,000	948,000,000
Gross Unrealized Gains	45,000,000	2,000,000
Gross Unrealized Losses	0	(3,000,000)
Fair Value	1,171,000,000	947,000,000
Held-to-maturity securities
Amortized Cost	221,000,000	306,000,000
Gross Unrealized Gains	8,000,000	0
Gross Unrealized Losses	0	(1,000,000)
Fair Value	229,000,000	305,000,000
Agency - Residential
Available-for-sale securities
Amortized Cost	806,000,000	1,015,000,000
Gross Unrealized Gains	31,000,000	4,000,000
Gross Unrealized Losses	0	(4,000,000)
Fair Value	837,000,000	1,015,000,000
Held-to-maturity securities
Amortized Cost	219,000,000	292,000,000
Gross Unrealized Gains	10,000,000	3,000,000
Gross Unrealized Losses	0	(1,000,000)
Fair Value	229,000,000	294,000,000
Corporate debt obligations
Available-for-sale securities
Amortized Cost	76,000,000	76,000,000
Gross Unrealized Gains	1,000,000	1,000,000
Gross Unrealized Losses	0	0
Fair Value	77,000,000	77,000,000
Municipal obligations
Available-for-sale securities
Amortized Cost	29,000,000	31,000,000
Gross Unrealized Gains	1,000,000	0
Gross Unrealized Losses	0	0
Fair Value	30,000,000	31,000,000
Other MBS
Available-for-sale securities
Amortized Cost	49,000,000	44,000,000
Gross Unrealized Gains	0	1,000,000
Gross Unrealized Losses	0	0
Fair Value	49,000,000	45,000,000
Certificate of deposits
Available-for-sale securities
Amortized Cost	1,000,000	1,000,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 1,000,000	$ 1,000,000

Investment Securities - Narrati

Investment Securities - Narrative (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Percentage of total securities	94.00%
Unrealized credit losses	$ 0	$ 0
Other assets	1,228,000,000	930,000,000
Accrued interest receivable on investment securities
Schedule of Held-to-maturity Securities [Line Items]
Other assets	$ 6,000,000	$ 6,000,000

Investment Securities - Availab

Investment Securities - Available-for-Sale Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Securities, Available-for-sale [Line Items]
Purchase of AFS securities	$ 0	$ 16,000,000	$ 359,000,000	$ 39,000,000
AFS securities sold	0	0	0	432,000,000
Investment securities pledged	7,000,000		7,000,000
Flagstar Bancorp, Inc. mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Passive interest in private MBS	$ 0	$ 0	$ 18,000,000	$ 0

Investment Securities - Held-to

Investment Securities - Held-to-Maturity Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Purchase of HTM securities	$ 0	$ 0	$ 0	$ 0
Sale of HTM securities	0	$ 0	0	$ 0
Debt securities, available-for-sale, restricted	7,000,000		7,000,000
Collateral pledged
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, available-for-sale, restricted	$ 176,000,000		$ 176,000,000		$ 874,000,000

Investment Securities - Summa_2

Investment Securities - Summary of Unrealized Loss Positions on Investment Securities (Details) $ in Millions	Sep. 30, 2020USD ($)securities	Dec. 31, 2019USD ($)securities
Agency - Commercial
Fair Value
Unrealized Loss Position with Duration 12 Months and Over	$ 3	$ 148
Unrealized Loss Position with Duration Under 12 Months	$ 4	$ 303
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities	1	17
Unrealized Loss Position with Duration Under 12 Months | securities	1	19
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over	$ 0	$ (3)
Unrealized Loss Position with Duration Under 12 Months	0	0
Fair Value
Unrealized Loss Position with Duration 12 Months and Over		148
Unrealized Loss Position with Duration Under 12 Months		$ 85
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities		13
Unrealized Loss Position with Duration Under 12 Months | securities		6
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over		$ (1)
Unrealized Loss Position with Duration Under 12 Months		0
Municipal obligations
Fair Value
Unrealized Loss Position with Duration 12 Months and Over	0	8
Unrealized Loss Position with Duration Under 12 Months	$ 6	$ 0
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities	0	3
Unrealized Loss Position with Duration Under 12 Months | securities	1	0
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over	$ 0	$ 0
Unrealized Loss Position with Duration Under 12 Months	0	0
Corporate debt obligations
Fair Value
Unrealized Loss Position with Duration 12 Months and Over	0
Unrealized Loss Position with Duration Under 12 Months	$ 13
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities	0
Unrealized Loss Position with Duration Under 12 Months | securities	4
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over	$ 0
Unrealized Loss Position with Duration Under 12 Months	0
Other mortgage-backed securities
Fair Value
Unrealized Loss Position with Duration 12 Months and Over	0
Unrealized Loss Position with Duration Under 12 Months	$ 0
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities	0
Unrealized Loss Position with Duration Under 12 Months | securities	1
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over	$ 0
Unrealized Loss Position with Duration Under 12 Months	0
Agency - Residential
Fair Value
Unrealized Loss Position with Duration 12 Months and Over		266
Unrealized Loss Position with Duration Under 12 Months		$ 148
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities		26
Unrealized Loss Position with Duration Under 12 Months | securities		14
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over		$ (3)
Unrealized Loss Position with Duration Under 12 Months		(1)
Fair Value
Unrealized Loss Position with Duration 12 Months and Over	0	35
Unrealized Loss Position with Duration Under 12 Months	$ 5	$ 38
Number of Securities
Unrealized Loss Position with Duration 12 Months and Over | securities	0	7
Unrealized Loss Position with Duration Under 12 Months | securities	2	10
Unrealized Loss
Unrealized Loss Position with Duration 12 Months and Over	$ 0	$ (1)
Unrealized Loss Position with Duration Under 12 Months	$ 0	$ 0

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Investment Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 5
Due after one year through five years	8
Due after five years through 10 years	108
Due after 10 years	1,966
Amortized Cost	2,087	$ 2,115
Investment Securities Available-for-Sale, Estimated Fair Value
Due in one year or less	5
Due after one year through five years	8
Due after five years through 10 years	111
Due after 10 years	2,041
Fair Value	$ 2,165	2,116
Investment Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	2.24%
Due after one year through five years (as a percent)	2.71%
Due after five years through 10 years (as a percent)	4.23%
Due after 10 years (as a percent)	2.38%
Investment Securities Held-to-maturity, Amortized cost
Due in one year or less	$ 0
Due after one year through five years	8
Due after five years through 10 years	8
Due after 10 years	424
Amortized Cost	440	598
Investment Securities Held-to-maturity, Estimated Fair Value
Due in one year or less	0
Due after one year through five years	8
Due after five years through 10 years	8
Due after 10 years	442
Fair Value	$ 458	$ 599
Investment Securities Held-to-maturity, Weighted Average Yield
Due in one year or less (as a percent)	0.00%
Due after one year through five years (as a percent)	2.52%
Due after five years through 10 years (as a percent)	2.35%
Due after 10 years (as a percent)	2.34%

Loans Held-for-Sale (Details)

Loans Held-for-Sale (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net gain on loan sales	$ 346	$ 110	$ 739	$ 234
Loans Held-for-Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-sale	5,400		5,400		$ 5,300
Net gain on loan sales	344	$ 110	737	$ 232
LHFS Recorded at Lower of Cost or Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-sale	$ 15		$ 15		$ 39

Loans Held-for-Investment - Nar

Loans Held-for-Investment - Narrative (Details) - USD ($)	9 Months Ended	12 Months Ended	18 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other assets	$ 1,228,000,000	$ 930,000,000
Loans pledged as collateral	$ 10,700,000,000	9,100,000,000
Allowance for credit loss, forecast period	2 years
Allowance for loan loss	$ 255,000,000	107,000,000			$ 229,000,000	$ 110,000,000	$ 110,000,000	$ 128,000,000
Interest income on nonaccrual loans using cash basis method	2,000,000	1,000,000
Loans 90 days past due and still accruing interest	0	0
Other liabilities	3,417,000,000	1,021,000,000
Unfunded Commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other liabilities	25,000,000	3,000,000
Forecast | COVID-19 Pandemic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unemployment rate (in percentage)				10.00%
Decrease in HPI (in percentage)			2.00%
Accrued interest receivable on loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other assets	$ 41,000,000	$ 36,900,000

Loans Held-for-Investment - Sum

Loans Held-for-Investment - Summary of Loans Held-for-Investment and UPB of Loan Sales and Purchases in the Loans Held-for-Investment Portfolio (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 16,476		$ 12,129
Total loans sold	436	$ 166
Net gain associated with loan sales	3	2
Total loans purchased	63	250
Premium associated with loans purchased	0	9
Performing loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans sold	436	166
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans purchased	0	199
Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans purchased	63	$ 51
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	4,369		4,907
Consumer loans | Residential first mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	2,472		3,154
Consumer loans | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	924		1,024
Consumer loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	973		729
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	12,107		7,222
Commercial loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	2,996		2,828
Commercial loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	1,520		1,634
Commercial loans | Warehouse lending
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 7,591		$ 2,760

Loans Held-for-Investment - Cha

Loans Held-for-Investment - Changes in ALLL by Class of Loan (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Allowance for Loan Losses [Roll Forward]
Beginning balance	$ 229	$ 110	$ 107	$ 128	$ 128
Accounting Standards Update [Extensible List]					us-gaap:AccountingStandardsUpdate201613Member
Provision (benefit)	28	1	132	18
Charge-offs	(4)	(4)	(12)	(40)
Recoveries	2	3	5	4
Ending allowance balance	255	110	255	110	$ 107
Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			23
Ending allowance balance					23
Consumer loans | Residential first mortgage loans
Allowance for Loan Losses [Roll Forward]
Beginning balance	60	26	22	38	38
Provision (benefit)	(6)	2	10	(8)
Charge-offs	(2)	(1)	(5)	(3)
Recoveries	0	1	0	1
Ending allowance balance	52	28	52	28	22
Consumer loans | Residential first mortgage loans | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			25
Ending allowance balance					25
Consumer loans | Home equity
Allowance for Loan Losses [Roll Forward]
Beginning balance	28	16	14	15	15
Provision (benefit)	1	0	3	0
Charge-offs	(1)	(1)	(3)	(1)
Recoveries	1	1	3	2
Ending allowance balance	29	16	29	16	14
Consumer loans | Home equity | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			12
Ending allowance balance					12
Consumer loans | Other consumer
Allowance for Loan Losses [Roll Forward]
Beginning balance	34	5	6	3	3
Provision (benefit)	4	3	24	8
Charge-offs	(1)	(2)	(4)	(5)
Recoveries	1	0	2	0
Ending allowance balance	38	6	38	6	6
Consumer loans | Other consumer | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			10
Ending allowance balance					10
Commercial loans | Commercial real estate
Allowance for Loan Losses [Roll Forward]
Beginning balance	83	35	38	48	48
Provision (benefit)	6	(2)	65	(15)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending allowance balance	89	33	89	33	38
Commercial loans | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			(14)
Ending allowance balance					(14)
Commercial loans | Commercial and industrial
Allowance for Loan Losses [Roll Forward]
Beginning balance	23	23	22	18	18
Provision (benefit)	19	(2)	26	34
Charge-offs	0	0	0	(31)
Recoveries	0	1	0	1
Ending allowance balance	42	22	42	22	22
Commercial loans | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			(6)
Ending allowance balance					(6)
Commercial loans | Warehouse lending
Allowance for Loan Losses [Roll Forward]
Beginning balance	1	5	5	6	6
Provision (benefit)	4	0	4	(1)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending allowance balance	$ 5	$ 5	5	$ 5	5
Commercial loans | Warehouse lending | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan Losses [Roll Forward]
Beginning balance			$ (4)
Ending allowance balance					$ (4)

Loans Held-for-Investment - Agi

Loans Held-for-Investment - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Loans, Aging [Abstract]
Total past due	$ 59	$ 40
Current	16,417	12,089
Total loans	16,476	12,129
Loans greater than 90 days past due accounted for under the fair value option	8	4
Loans pledged as collateral	10,700	9,100
Interest income recognized	2	1
Collateral pledged
Loans, Aging [Abstract]
Loans pledged as collateral	74	54
30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	9	9
60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	4	5
90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	46	26
Consumer loans
Loans, Aging [Abstract]
Total past due	49	40
Current	4,320	4,867
Total loans	4,369	4,907
Consumer loans | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	9	9
Consumer loans | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	4	5
Consumer loans | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	36	26
Consumer loans | Residential first mortgage loans
Loans, Aging [Abstract]
Total past due	38	30
Current	2,434	3,124
Total loans	2,472	3,154
Consumer loans | Residential first mortgage loans | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	5	5
Consumer loans | Residential first mortgage loans | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	3	4
Consumer loans | Residential first mortgage loans | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	30	21
Consumer loans | Home equity
Loans, Aging [Abstract]
Total past due	5	5
Current	919	1,019
Total loans	924	1,024
Consumer loans | Home equity | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	1	1
Consumer loans | Home equity | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Consumer loans | Home equity | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	4	4
Consumer loans | Other
Loans, Aging [Abstract]
Total past due	6	5
Current	967	724
Total loans	973	729
Consumer loans | Other | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	3	3
Consumer loans | Other | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	1	1
Consumer loans | Other | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	2	1
Commercial loans
Loans, Aging [Abstract]
Total past due	10	0
Current	12,097	7,222
Total loans	12,107	7,222
Commercial loans | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	10	0
Commercial loans | Commercial real estate
Loans, Aging [Abstract]
Total past due	0	0
Current	2,996	2,828
Total loans	2,996	2,828
Commercial loans | Commercial real estate | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Commercial real estate | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Commercial real estate | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Commercial and industrial
Loans, Aging [Abstract]
Total past due	10	0
Current	1,510	1,634
Total loans	1,520	1,634
Commercial loans | Commercial and industrial | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Commercial and industrial | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Commercial and industrial | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	10	0
Commercial loans | Warehouse lending
Loans, Aging [Abstract]
Total past due	0	0
Current	7,591	2,760
Total loans	7,591	2,760
Commercial loans | Warehouse lending | 30-59 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Warehouse lending | 60-89 Days Past Due
Loans, Aging [Abstract]
Total past due	0	0
Commercial loans | Warehouse lending | 90 Days or Greater Past Due
Loans, Aging [Abstract]
Total past due	$ 0	$ 0

Loans Held-for-Investment - S_2

Loans Held-for-Investment - Summary of TDRs by Type and Performing Status and Newly Modified TDRs (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Troubled Debt Restructurings
TDRs	$ 48		$ 48			$ 48
Allowance for loan loss	255	$ 110	255	$ 110	$ 229	107	$ 110	$ 128
TDR loans under fair value option	$ 2		$ 2			2
Number of Accounts | loan	3	4	12	10
Pre-Modification Unpaid Principal Balance	$ 0	$ 1	$ 6	$ 2
Post-Modification Unpaid Principal Balance	0	$ 1	6	$ 2
Troubled debt restructurings
Troubled Debt Restructurings
Allowance for loan loss	5		5			8
Performing
Troubled Debt Restructurings
TDRs	39		39			38
Nonperforming
Troubled Debt Restructurings
TDRs	$ 9		$ 9			10
Residential first mortgage loans
Troubled Debt Restructurings
Number of Accounts | loan	1	4	6	6
Pre-Modification Unpaid Principal Balance	$ 0	$ 1	$ 1	$ 1
Post-Modification Unpaid Principal Balance	$ 0	1	$ 1	$ 1
Home equity
Troubled Debt Restructurings
Number of Accounts | loan	1		3	4
Pre-Modification Unpaid Principal Balance	$ 0		$ 0	$ 1
Post-Modification Unpaid Principal Balance	$ 0		$ 0	1
Commercial real estate
Troubled Debt Restructurings
Number of Accounts | loan			1
Pre-Modification Unpaid Principal Balance			$ 5
Post-Modification Unpaid Principal Balance			$ 5
Consumer
Troubled Debt Restructurings
Number of Accounts | loan	1		2
Pre-Modification Unpaid Principal Balance	$ 0		$ 0
Post-Modification Unpaid Principal Balance	0		0
Consumer loans | Residential first mortgage loans
Troubled Debt Restructurings
TDRs	27		27			28
Allowance for loan loss	52	28	52	28	60	22	26	38
Consumer loans | Residential first mortgage loans | Performing
Troubled Debt Restructurings
TDRs	20		20			20
Consumer loans | Residential first mortgage loans | Nonperforming
Troubled Debt Restructurings
TDRs	7		7			8
Consumer loans | Home equity
Troubled Debt Restructurings
TDRs	16		16			20
Allowance for loan loss	29	$ 16	29	$ 16	$ 28	14	$ 16	$ 15
Consumer loans | Home equity | Performing
Troubled Debt Restructurings
TDRs	14		14			18
Consumer loans | Home equity | Nonperforming
Troubled Debt Restructurings
TDRs	2		2			$ 2
Consumer loans | Commercial real estate
Troubled Debt Restructurings
TDRs	5		5
Consumer loans | Commercial real estate | Performing
Troubled Debt Restructurings
TDRs	5		5
Consumer loans | Commercial real estate | Nonperforming
Troubled Debt Restructurings
TDRs	$ 0		$ 0

Loans Held-for-Investment - Loa

Loans Held-for-Investment - Loan Quality Indicators (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 16,476	$ 12,129
Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	488
2019	1,017
2018	460
2017	363
2016	312
Prior	548
Revolving Loans Amortized Cost Basis	1,123
Revolving Loans Converted to Term Loans Amortized Cost Basis	43
Total	4,354	4,895
Total loans	4,369	4,907
Consumer loans | Residential first mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	2,472	3,154
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, Greater than 90
Financing Receivable, Credit Quality Indicator [Line Items]
2020	53
2019	286
2018	142
2017	39
2016	3
Prior	21
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	544
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, 71-90
Financing Receivable, Credit Quality Indicator [Line Items]
2020	122
2019	213
2018	77
2017	123
2016	82
Prior	267
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	884
Consumer loans | Residential first mortgage loans | Debt-to-Vale Ratio, 55-70
Financing Receivable, Credit Quality Indicator [Line Items]
2020	64
2019	78
2018	29
2017	99
2016	121
Prior	140
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	531
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, Less than 55
Financing Receivable, Credit Quality Indicator [Line Items]
2020	17
2019	58
2018	30
2017	91
2016	102
Prior	88
Revolving Loans Amortized Cost Basis	105
Revolving Loans Converted to Term Loans Amortized Cost Basis	9
Total	500
Consumer loans | Residential first mortgage loans | FICO Score, Greater than 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	151
2019	323
2018	141
2017	241
2016	228
Prior	272
Revolving Loans Amortized Cost Basis	61
Revolving Loans Converted to Term Loans Amortized Cost Basis	2
Total	1,419
Consumer loans | Residential first mortgage loans | FICO Score, 700 to 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	79
2019	212
2018	106
2017	95
2016	73
Prior	148
Revolving Loans Amortized Cost Basis	30
Revolving Loans Converted to Term Loans Amortized Cost Basis	5
Total	748
Consumer loans | Residential first mortgage loans | FICO Score, Less than 700
Financing Receivable, Credit Quality Indicator [Line Items]
2020	26
2019	100
2018	31
2017	16
2016	7
Prior	96
Revolving Loans Amortized Cost Basis	14
Revolving Loans Converted to Term Loans Amortized Cost Basis	2
Total	292
Consumer loans | Residential first mortgage loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	256
2019	630
2018	272
2017	348
2016	308
Prior	483
Revolving Loans Amortized Cost Basis	105
Revolving Loans Converted to Term Loans Amortized Cost Basis	8
Total	2,410	3,107
Consumer loans | Residential first mortgage loans | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	1
2018	0
2017	2
2016	0
Prior	16
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	19	23
Consumer loans | Residential first mortgage loans | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	4
2018	6
2017	2
2016	0
Prior	17
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	1
Total	30	15
Consumer loans | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	924	1,024
Consumer loans | Home equity | Debt-to-Value Ratio, Greater than 90
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	2
2016	1
Prior	11
Revolving Loans Amortized Cost Basis	1
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	15
Consumer loans | Home equity | Debt-to-Value Ratio, 71-90
Financing Receivable, Credit Quality Indicator [Line Items]
2020	4
2019	29
2018	12
2017	4
2016	1
Prior	10
Revolving Loans Amortized Cost Basis	612
Revolving Loans Converted to Term Loans Amortized Cost Basis	21
Total	693
Consumer loans | Home equity | Debt-to-Value Ratio, Less than or Equal to 70
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	8
2018	4
2017	1
2016	0
Prior	4
Revolving Loans Amortized Cost Basis	187
Revolving Loans Converted to Term Loans Amortized Cost Basis	8
Total	214
Consumer loans | Home equity | FICO Score, Greater than 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	11
2018	6
2017	3
2016	0
Prior	7
Revolving Loans Amortized Cost Basis	358
Revolving Loans Converted to Term Loans Amortized Cost Basis	4
Total	391
Consumer loans | Home equity | FICO Score, 700 to 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	14
2018	5
2017	3
2016	1
Prior	9
Revolving Loans Amortized Cost Basis	319
Revolving Loans Converted to Term Loans Amortized Cost Basis	14
Total	367
Consumer loans | Home equity | FICO Score, Less than 700
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	12
2018	5
2017	1
2016	1
Prior	9
Revolving Loans Amortized Cost Basis	123
Revolving Loans Converted to Term Loans Amortized Cost Basis	11
Total	164
Consumer loans | Home equity | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	6
2019	37
2018	16
2017	7
2016	2
Prior	12
Revolving Loans Amortized Cost Basis	799
Revolving Loans Converted to Term Loans Amortized Cost Basis	29
Total	908	1,002
Consumer loans | Home equity | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	12
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	12	16
Consumer loans | Home equity | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	1
Revolving Loans Amortized Cost Basis	1
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	2	3
Consumer loans | Other consumer | FICO Score, Greater than 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	160
2019	220
2018	87
2017	1
2016	0
Prior	5
Revolving Loans Amortized Cost Basis	200
Revolving Loans Converted to Term Loans Amortized Cost Basis	5
Total	678
Consumer loans | Other consumer | FICO Score, 700 to 750
Financing Receivable, Credit Quality Indicator [Line Items]
2020	61
2019	114
2018	65
2017	3
2016	2
Prior	2
Revolving Loans Amortized Cost Basis	18
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	265
Consumer loans | Other consumer | FICO Score, Less than 700
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5
2019	11
2018	14
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	30
Consumer loans | Other consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	226
2019	345
2018	165
2017	4
2016	2
Prior	7
Revolving Loans Amortized Cost Basis	218
Revolving Loans Converted to Term Loans Amortized Cost Basis	5
Total	972	727
Consumer loans | Other consumer | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	0	1
Consumer loans | Other consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	1
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total	1	1
Consumer loans | Residential first mortgage and home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2020	262
2019	672
2018	294
2017	359
2016	310
Prior	541
Revolving Loans Amortized Cost Basis	905
Revolving Loans Converted to Term Loans Amortized Cost Basis	38
Total	3,381
Commercial loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	510
2019	1,558
2018	806
2017	761
2016	470
Prior	392
Revolving Loans Amortized Cost Basis	7,610
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	12,107	7,222
Commercial loans | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	2,996	2,828
Commercial loans | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	249
2019	978
2018	466
2017	452
2016	325
Prior	239
Revolving Loans Amortized Cost Basis	(1)
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	2,708	2,794
Commercial loans | Commercial real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	20
2019	14
2018	81
2017	44
2016	28
Prior	31
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	218	24
Commercial loans | Commercial real estate | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	4
2019	9
2018	16
2017	0
2016	10
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	39	5
Commercial loans | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	3
2018	3
2017	25
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	31	5
Commercial loans | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,520	1,634
Commercial loans | Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	212
2019	494
2018	185
2017	188
2016	107
Prior	116
Revolving Loans Amortized Cost Basis	20
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	1,322	1,533
Commercial loans | Commercial and industrial | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	46
2018	26
2017	25
2016	0
Prior	1
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	100	72
Commercial loans | Commercial and industrial | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	13
2018	13
2017	17
2016	0
Prior	5
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	50	24
Commercial loans | Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	21
2019	1
2018	16
2017	10
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	48	5
Commercial loans | Warehouse loan commitments | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	7,381
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	7,381	2,556
Commercial loans | Warehouse loan commitments | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	195
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	195	189
Commercial loans | Warehouse loan commitments | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	15
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	15	15
Commercial loans | Warehouse loan commitments | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0
Total loans	$ 0	$ 0

Loans with Government Guarant_2

Loans with Government Guarantees (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Debt instrument, term	10 years
Repurchase option	$ 1,800
Increase in repurchase option	1,700
Repossessed assets and associated claims	$ 22	$ 45

Variable Interest Entities (Det

Variable Interest Entities (Details) - entity	Sep. 30, 2020	Dec. 31, 2019
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract]
Number of VIEs	0	0
Agency - Commercial
Private-label Securitizations
Ownership interest investment	5.00%

Mortgage Servicing Rights - Cha

Mortgage Servicing Rights - Changes in the Fair Value of Residential First Mortgage MSRs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Servicing Asset at Fair Value [Roll Forward]
Balance at beginning of period			$ 291
Fair value of MSRs at end of period	$ 323		323
Residential First Mortgage
Servicing Asset at Fair Value [Roll Forward]
Balance at beginning of period	261	$ 316	291	$ 290
Additions from loans sold with servicing retained	85	39	209	203
Reductions from sales	0	(12)	(46)	(57)
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other	(25)	(30)	(74)	(60)
Changes in estimates of fair value due to interest rate risk	2	(28)	(57)	(91)
Fair value of MSRs at end of period	$ 323	$ 285	$ 323	$ 285

Mortgage Servicing Rights - Sum

Mortgage Servicing Rights - Summary of Adverse Changes to Weighted-Average Assumptions on the Fair Value of Servicing Rights (Details) - Mortgage Servicing Rights - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Actual
Option adjusted spread (as a percent)	7.61%	5.34%
Constant prepayment rate (as a percent)	11.36%	10.59%
Weighted average cost to service per loan (in dollars per share)	$ 81.68	$ 84.41
Fair value impact due to 10% adverse change
Option adjusted spread	$ 316	$ 284
Constant prepayment rate	300	271
Weighted average cost to service per loan	320	285
Fair value impact due to 20% adverse change
Option adjusted spread	310	280
Constant prepayment rate	279	257
Weighted average cost to service per loan	$ 316	$ 282

Mortgage Servicing Rights - S_2

Mortgage Servicing Rights - Summary of Income and Fees (Details) - Residential first mortgage loans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Servicing Assets at Fair Value [Line Items]
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other	$ (25)	$ (30)	$ (74)	$ (60)
Changes in fair value due to interest rate risk	2	(28)	(57)	(91)
Net return (loss) on mortgage servicing rights
Servicing Assets at Fair Value [Line Items]
Servicing fees, ancillary income and late fees	30	25	75	70
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other	(25)	(30)	(74)	(60)
Changes in fair value due to interest rate risk	2	(28)	(57)	(91)
Gain on MSR derivatives	4	31	68	92
Net transaction costs	1	0	(2)	(2)
Total return (loss) included in net return on mortgage servicing rights	12	(2)	10	9
Loan administration income on mortgage loans subserviced
Servicing Assets at Fair Value [Line Items]
Servicing fees, ancillary income and late fees	33	27	94	77
Charges on subserviced custodial balances	(3)	(20)	(26)	(50)
Other servicing charges	(4)	(2)	(9)	(5)
Total income on mortgage loans subserviced, included in loan administration	$ 26	$ 5	$ 59	$ 22

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative [Line Items]
Unrealized losses on derivatives, net of tax	$ 0	$ 0	$ 10,000,000	$ 0	$ 0
Amount of losses, net of tax, to be reclassified	4,000,000		4,000,000
Right to reclaim cash	82,000,000		82,000,000		63,000,000
Right to reclaim cash, cash collateral	56,000,000		56,000,000		34,000,000
Right to reclaim cash, maintenance margin	26,000,000		26,000,000		29,000,000
Assets
Derivative [Line Items]
Right to reclaim cash	0		0
Custodial deposits
Derivative [Line Items]
Amount of gain (loss) reclassified from AOCI into income	(1,000,000)		(2,000,000)
AFS securities
Derivative [Line Items]
Loss on fair value hedge	1,000,000		1,000,000
Interest rate swaps on AFS securities
Derivative [Line Items]
Amount representing designated last of layer	1,808,000,000		1,808,000,000		291,000,000
Amortized cost basis of hedge designated last of layer	1,805,000,000		1,805,000,000		289,000,000
Interest rate swaps on AFS securities | Assets
Derivative [Line Items]
Cumulative amount of fair value hedging adjustment included in the carrying amount	8,000,000		8,000,000		1,000,000
Amount representing designated last of layer	450,000,000		450,000,000		100,000,000
Right to reclaim cash	0		0
Interest rate swaps on AFS securities | Carrying Value | Assets
Derivative [Line Items]
Carrying amount of hedged securities	1,878,000,000		1,878,000,000
FLHB Advances | Carrying Value | Assets
Derivative [Line Items]
Carrying amount of hedged securities					287,000,000
Interest rate swaps on HFI residential first mortgages | Assets
Derivative [Line Items]
Carrying amount of hedged securities	255,000,000		255,000,000		$ 0
Cumulative amount of fair value hedging adjustment included in the carrying amount	$ 1,000,000		$ 1,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Notional Amount, Estimated Fair Value and Maturity of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Derivatives in fair value hedge relationships
Assets
Fair value	$ 1
Liabilities
Fair value	0
Derivatives in fair value hedge relationships | Assets
Assets
Notional amount	550	$ 300
Fair value	0	0
Derivatives in fair value hedge relationships | Interest rate swaps on custodial deposits
Assets
Fair value	1
Derivatives in fair value hedge relationships | Interest rate swaps on custodial deposits | Assets
Assets
Notional amount	800	200
Fair value	1	0
Derivatives in fair value hedge relationships | Interest rate swaps on AFS securities
Assets
Fair value	0
Liabilities
Fair value	0
Derivatives in fair value hedge relationships | Interest rate swaps on AFS securities | Assets
Assets
Notional amount	450	100
Fair value	0	0
Derivatives in fair value hedge relationships | Interest rate swaps on HFI residential first mortgages
Assets
Fair value	0
Derivatives in fair value hedge relationships | Interest rate swaps on HFI residential first mortgages | Assets
Assets
Notional amount	100
Fair value	0
Derivatives not designated as hedging instruments
Assets
Fair value	74	28
Liabilities
Fair value	46	17
Derivatives not designated as hedging instruments | Assets
Assets
Notional amount	17,342	7,137
Fair value	331	62
Derivatives not designated as hedging instruments | Liabilities
Liabilities
Notional amount	10,207	7,640
Fair value	46	18
Derivatives not designated as hedging instruments | Futures
Assets
Fair value	0
Derivatives not designated as hedging instruments | Futures | Assets
Assets
Notional amount	1,132	550
Fair value	0	0
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards
Assets
Fair value	9	2
Liabilities
Fair value	37	9
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | Assets
Assets
Notional amount	3,471	1,918
Fair value	9	2
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | Liabilities
Liabilities
Notional amount	8,008	5,749
Fair value	37	9
Derivatives not designated as hedging instruments | Rate lock commitments | Assets
Assets
Notional amount	12,015	3,870
Fair value	257	34
Derivatives not designated as hedging instruments | Rate lock commitments | Liabilities
Liabilities
Notional amount	169	229
Fair value	0	1
Derivatives not designated as hedging instruments | Interest rate swaps
Assets
Fair value	65	26
Derivatives not designated as hedging instruments | Interest rate swaps | Assets
Assets
Notional amount	724	799
Fair value	65	26
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions
Liabilities
Fair value	9	8
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | Liabilities
Liabilities
Notional amount	2,030	1,662
Fair value	$ 9	$ 8

Derivative Financial Instrume_5

Derivative Financial Instruments - Derivatives Subject to a Master Netting Arrangement (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Liabilities
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral	$ 82	$ 63
Derivatives designated as hedging instruments
Assets
Gross Amount	1
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	1
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments	0
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral	12
Liabilities
Gross Amount	0
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	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
Derivatives designated as hedging instruments | Interest rate swaps on AFS securities
Assets
Gross Amount	0
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	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	4
Liabilities
Gross Amount	0
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	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
Derivatives designated as hedging instruments | Interest rate swaps on custodial deposits
Assets
Gross Amount	1
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	1
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments	0
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral	7
Derivatives designated as hedging instruments | Interest rate swaps on HFI residential first mortgages
Assets
Gross Amount	0
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	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	1
Derivatives not designated as hedging instruments
Assets
Gross Amount	74	28
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	74	28
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	0
Liabilities
Gross Amount	46	17
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	46	17
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral	70	63
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards
Assets
Gross Amount	9	2
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	9	2
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	0
Liabilities
Gross Amount	37	9
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	37	9
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	39	24
Derivatives not designated as hedging instruments | Interest rate swaps
Assets
Gross Amount	65	26
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	65	26
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral	0	0
Derivatives not designated as hedging instruments | Futures
Assets
Gross Amount	0
Gross Amounts Netted in the Statements of Financial Condition	0
Net Amount Presented in the Statements of Financial Condition	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
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions
Liabilities
Gross Amount	9	8
Gross Amounts Netted in the Statements of Financial Condition	0	0
Net Amount Presented in the Statements of Financial Condition	9	8
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	$ 31	$ 39

Derivative Financial Instrume_6

Derivative Financial Instruments - Net Gain (Loss) Recognized in Income on Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative [Line Items]
Derivative gain (loss)	$ 73	$ 60	$ 259	$ 154
Futures | Net gain (loss) on mortgage servicing rights
Derivative [Line Items]
Derivative gain (loss)	0	0	1	(2)
Interest rate swaps and swaptions | Net gain (loss) on mortgage servicing rights
Derivative [Line Items]
Derivative gain (loss)	(2)	28	39	71
Mortgage-backed securities forwards | Net gain (loss) on mortgage servicing rights
Derivative [Line Items]
Derivative gain (loss)	5	3	28	23
Rate lock commitments and MSR forwards | Net gain (loss) on loan sales
Derivative [Line Items]
Derivative gain (loss)	70	27	190	57
Forward commitments | Other noninterest income
Derivative [Line Items]
Derivative gain (loss)	0	0	0	2
Interest rate swaps | Other noninterest income
Derivative [Line Items]
Derivative gain (loss)	$ 0	$ 2	$ 1	$ 3

Borrowings - Breakdown of FHLB

Borrowings - Breakdown of FHLB Advances Outstanding (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total short-term Federal Home Loan Bank advances and other borrowings	$ 2,226,000,000	$ 4,165,000,000
Rate	1.03%	1.45%
Long-term Federal Home Loan Bank fixed rate advances	$ 1,200,000,000	$ 650,000,000
Total	3,426,000,000	4,815,000,000
Current portion of fixed rate advances	0	0
Short-term fixed rate term advances
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total short-term Federal Home Loan Bank advances and other borrowings	$ 1,555,000,000	$ 3,695,000,000
Rate	0.20%	1.61%
Other short-term borrowings
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total short-term Federal Home Loan Bank advances and other borrowings	$ 671,000,000	$ 470,000,000
Rate	0.11%	1.64%

Borrowings - Detailed Informati

Borrowings - Detailed Information on FHLB Advances and Other Borrowings (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Disclosure [Abstract]
Maximum outstanding at any month end	$ 4,388	$ 2,979	$ 6,841	$ 3,391
Average outstanding balance	3,528	2,446	4,234	2,769
Average remaining borrowing capacity	$ 5,494	$ 4,957	$ 5,249	$ 3,932
Weighted average interest rate	0.48%	2.10%	0.76%	2.33%

Borrowings - Maturity Dates of

Borrowings - Maturity Dates of FHLB Advances and Other Borrowings (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
2020	$ 2,226
2021	0
2022	200
2023	500
Thereafter	500
Total	$ 3,426	$ 4,815

Borrowings - Summary of Long-Te

Borrowings - Summary of Long-Term Debt, Net of Debt Issuance Costs (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Senior notes	$ 246	$ 249
Interest rate	6.125%	6.125%
Trust preferred securities	$ 247	$ 247
Other tong-term debt	493	496
3.25%, matures 2032
Debt Instrument [Line Items]
Trust preferred securities	$ 26	$ 26
Interest rate	3.48%	5.20%
3.25%, matures 2033
Debt Instrument [Line Items]
Trust preferred securities	$ 26	$ 26
Interest rate	3.53%	5.24%
3.25%, matures 2033
Debt Instrument [Line Items]
Trust preferred securities	$ 26	$ 26
Interest rate	3.47%	5.21%
2.00%, matures 2035
Debt Instrument [Line Items]
Trust preferred securities	$ 26	$ 26
Interest rate	2.28%	3.99%
2.00%, matures 2035
Debt Instrument [Line Items]
Trust preferred securities	$ 26	$ 26
Interest rate	2.28%	3.99%
1.75%, matures 2035
Debt Instrument [Line Items]
Trust preferred securities	$ 51	$ 51
Interest rate	2.00%	3.64%
1.50%, matures 2035
Debt Instrument [Line Items]
Trust preferred securities	$ 25	$ 25
Interest rate	1.78%	3.49%
1.45%, matures 2037
Debt Instrument [Line Items]
Trust preferred securities	$ 25	$ 25
Interest rate	1.70%	3.34%
2.50%, matures 2037
Debt Instrument [Line Items]
Trust preferred securities	$ 16	$ 16
Interest rate	2.75%	4.39%
Floating Three Month LIBOR | 3.25%, matures 2032
Debt Instrument [Line Items]
Variable rate on interest rate	3.25%
Floating Three Month LIBOR | 3.25%, matures 2033
Debt Instrument [Line Items]
Variable rate on interest rate	3.25%
Floating Three Month LIBOR | 3.25%, matures 2033
Debt Instrument [Line Items]
Variable rate on interest rate	3.25%
Floating Three Month LIBOR | 2.00%, matures 2035
Debt Instrument [Line Items]
Variable rate on interest rate	2.00%
Floating Three Month LIBOR | 2.00%, matures 2035
Debt Instrument [Line Items]
Variable rate on interest rate	2.00%
Floating Three Month LIBOR | 1.75%, matures 2035
Debt Instrument [Line Items]
Variable rate on interest rate	1.75%
Floating Three Month LIBOR | 1.50%, matures 2035
Debt Instrument [Line Items]
Variable rate on interest rate	1.50%
Floating Three Month LIBOR | 1.45%, matures 2037
Debt Instrument [Line Items]
Variable rate on interest rate	1.45%
Floating Three Month LIBOR | 2.50%, matures 2037
Debt Instrument [Line Items]
Variable rate on interest rate	2.50%

Borrowings - Narrative (Details

Borrowings - Narrative (Details)	Jul. 11, 2016USD ($)	Sep. 30, 2020USD ($)trust_subsidiary
Debt Instrument [Line Items]
Number of trust subsidiaries | trust_subsidiary		9
Payment of interest on trust preferred securities		$ 0
Senior Notes | Senior Notes Maturing July 2021
Debt Instrument [Line Items]
Debt instrument, face amount	$ 250,000,000
Debt instrument redemption rate	100.00%
Senior Notes | Senior Notes Maturing July 2021 | Treasury Rate
Debt Instrument [Line Items]
Variable rate on interest rate	0.50%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accumulated other comprehensive income (loss)
Beginning balance			$ 1,788	$ 1,570
Other comprehensive income, net of tax	$ 0	$ 13	45	52
Ending balance	2,195	1,734	2,195	1,734
Investment Securities
Accumulated other comprehensive income (loss)
Beginning balance	56	(8)	1	(47)
Unrealized gain (loss)	0	18	72	61
Less: Tax provision (benefit)	0	5	17	15
Net unrealized gain (loss)	0	13	55	46
Reclassifications out of AOCI	0	0	0	7
Less: Tax provision	0	0	0	1
Net unrealized gain reclassified out of AOCI	0	0	0	6
Other comprehensive income, net of tax	0	13	55	52
Ending balance	56	5	56	5
Cash Flow Hedges
Accumulated other comprehensive income (loss)
Beginning balance	(10)	0	0	0
Unrealized gain (loss)	0	0	(13)	0
Less: Tax provision (benefit)	0	0	(3)	0
Net unrealized gain (loss)	0	0	(10)	0
Reclassifications out of AOCI	0	0	0	0
Other comprehensive income, net of tax	0	0	(10)	0
Ending balance	$ (10)	$ 0	$ (10)	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 222	$ 63	$ 384	$ 160
Weighted Average Shares
Weighted average common shares outstanding (in shares)	57,032,746	56,484,499	56,827,171	56,607,944
Effect of dilutive securities
Stock-based awards (in shares)	347,063	626,297	404,518	644,596
Weighted average diluted common shares (in shares)	57,379,809	57,110,796	57,231,689	57,252,540
Earnings per common share
Basic earnings per common share (in dollars per share)	$ 3.90	$ 1.12	$ 6.76	$ 2.83
Effect of dilutive securities
Stock-based awards (in dollars per share)	(0.02)	(0.01)	(0.05)	(0.03)
Diluted earnings per common share (in dollars per share)	$ 3.88	$ 1.11	$ 6.71	$ 2.80

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 6	$ 4	$ 14	$ 9
2017 ESPP | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation shares authorized (in shares)	800,000		800,000
Shares available for issuance (in shares)	382,140		382,140
Shares issued during period (in shares)	43,946		149,789

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Shares
Non-vested balance at beginning of period (in shares)	1,412,884	1,399,127
Granted (in shares)	7,429	378,953
Vested (in shares)	(207,046)	(448,452)
Canceled and forfeited (in shares)	(133,394)	(249,755)
Weighted — Average Grant-Date Fair Value per Share
Non-vested balance at beginning of period (in dollars per share)	$ 29.72	$ 28.72
Granted (in dollars per share)	30.96	27.96
Vested (in dollars per share)	26.48	25.50
Canceled and forfeited (in dollars per share)	22.70	22.59
Non-vested balance at end of period (in dollars per share)	$ 31.21	$ 31.21

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income before income taxes	$ 295	$ 78	$ 499	$ 197
Provision for income taxes	$ 73	$ 15	$ 115	$ 37
Effective tax provision rate	24.70%	18.40%	23.00%	18.60%
Unrecognized tax benefits, recognition period			12 months

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Millions	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Tier One Leverage Capital
Tier 1 capital actual amount	$ 2,256	$ 1,720
Tier 1 capital (to adjusted tangible assets), actual ratio	0.080	0.076
Tier 1 capital, for capital adequacy purposes amount	$ 1,123	$ 909
Tier 1 capital (to adjusted tangible assets), for capital adequacy purposes ratio	0.040	0.040
Tier 1 capital capitalized under prompt corrective action provision amount	$ 1,403	$ 1,136
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio	0.050	0.050
Common Equity Tier 1 Capital
Common equity Tier 1 capital (to RWA), actual amount	$ 2,016	$ 1,480
Common equity Tier 1 capital (to RWA), actual ratio	9.20%	9.30%
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, amount	$ 985	$ 715
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, ratio	4.50%	4.50%
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, amount	$ 1,422	$ 1,033
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, ratio	6.50%	6.50%
Tier One Risk Based Capital [Abstract]
Tier 1 capital, actual amount	$ 2,256	$ 1,720
Tier 1 capital (to risk-weighted assets), actual ratio	0.103	0.108
Tier 1 capital, for capital adequacy purposes amount	$ 1,313	$ 953
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio	0.060	0.060
Tier 1 capital, capitalized under prompt corrective action provision amount	$ 1,751	$ 1,271
Tier 1 capital (to risk-weighted assets), capitalized under prompt corrective action provision ratio	0.080	0.080
Capital [Abstract]
Total capital, actual amount	$ 2,471	$ 1,830
Total capital (to risk-weighted assets), actual ratio	0.113	0.115
Total capital, for capital adequacy purposes amount	$ 1,751	$ 1,271
Total capital (to risk-weighted assets), for capital adequacy purposes ratio	0.080	0.080
Total capital, capitalized under prompt corrective action provisions amount	$ 2,188	$ 1,589
Total capital (to risk-weighted assets), capitalized under prompt corrective action provisions ratio	0.100	0.100
Bank
Tier One Leverage Capital
Tier 1 capital actual amount	$ 2,212	$ 1,752
Tier 1 capital (to adjusted tangible assets), actual ratio	0.079	0.077
Tier 1 capital, for capital adequacy purposes amount	$ 1,122	$ 909
Tier 1 capital (to adjusted tangible assets), for capital adequacy purposes ratio	0.040	0.040
Tier 1 capital capitalized under prompt corrective action provision amount	$ 1,403	$ 1,136
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio	0.050	0.050
Common Equity Tier 1 Capital
Common equity Tier 1 capital (to RWA), actual amount	$ 2,212	$ 1,752
Common equity Tier 1 capital (to RWA), actual ratio	10.10%	11.00%
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, amount	$ 985	$ 714
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, ratio	4.50%	4.50%
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, amount	$ 1,422	$ 1,032
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, ratio	6.50%	6.50%
Tier One Risk Based Capital [Abstract]
Tier 1 capital, actual amount	$ 2,212	$ 1,752
Tier 1 capital (to risk-weighted assets), actual ratio	0.101	0.110
Tier 1 capital, for capital adequacy purposes amount	$ 1,313	$ 952
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio	0.060	0.060
Tier 1 capital, capitalized under prompt corrective action provision amount	$ 1,751	$ 1,270
Tier 1 capital (to risk-weighted assets), capitalized under prompt corrective action provision ratio	0.080	0.080
Capital [Abstract]
Total capital, actual amount	$ 2,427	$ 1,862
Total capital (to risk-weighted assets), actual ratio	0.111	0.117
Total capital, for capital adequacy purposes amount	$ 1,751	$ 1,270
Total capital (to risk-weighted assets), for capital adequacy purposes ratio	0.080	0.080
Total capital, capitalized under prompt corrective action provisions amount	$ 2,188	$ 1,587
Total capital (to risk-weighted assets), capitalized under prompt corrective action provisions ratio	0.100	0.100

Legal Proceedings, Contingenc_3

Legal Proceedings, Contingencies and Commitments - Narrative (Details) $ in Millions	Feb. 24, 2012USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Aug. 31, 2018USD ($)
Loss Contingencies
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio		0.050	0.050
Tier 1 capital (to adjusted tangible assets), actual ratio		0.080	0.076
Business acquisition threshold (as a percent)		33.30%
Accrued reserve for contingent liabilities		$ 7	$ 3
SERP | CEO
Loss Contingencies
SERP Liability		$ 16		$ 16
Bank
Loss Contingencies
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio		0.050	0.050
Tier 1 capital (to adjusted tangible assets), actual ratio		0.079	0.077
DOJ Agreement
Loss Contingencies
Litigation settlement payment amount	$ 118
Accrued reserve for contingent liabilities			$ 35
DOJ Agreement | Bank
Loss Contingencies
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio	0.11
Tier 1 capital (to adjusted tangible assets), actual ratio	0.11
DOJ Agreement | Subsequent Payments
Loss Contingencies
Litigation expense (up to)	$ 25

Legal Proceedings, Contingenc_4

Legal Proceedings, Contingencies and Commitments - Summary of the Contractual Amount of Significant Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Mortgage loan commitments including interest-rate locks
Loss Contingencies
Commitments to extend credit	$ 12,257	$ 4,099
Warehouse loan commitments
Loss Contingencies
Commitments to extend credit	2,218	1,944
Commercial and industrial commitments
Loss Contingencies
Commitments to extend credit	1,207	1,107
Other commercial commitments
Loss Contingencies
Commitments to extend credit	1,653	2,015
HELOC commitments
Loss Contingencies
Commitments to extend credit	562	558
Other consumer commitments
Loss Contingencies
Commitments to extend credit	301	175
Standby and commercial letters of credit
Loss Contingencies
Commitments to extend credit	$ 97	$ 82

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments Carried at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
Investment securities available-for-sale	$ 2,165	$ 2,116
Loans held-for-sale, fair value	5,349	5,219
Loans held-for-investment	14	12
Mortgage servicing rights	323	291
Total assets at fair value	5,362	5,231
Agency - Commercial
Assets
Investment securities available-for-sale	1,171	947
Agency - Residential
Assets
Investment securities available-for-sale	837	1,015
Municipal obligations
Assets
Investment securities available-for-sale	30	31
Corporate debt obligations
Assets
Investment securities available-for-sale	77	77
Certificates of deposit
Assets
Investment securities available-for-sale	1	1
Estimate of Fair Value Measurement
Assets
Investment securities available-for-sale	2,165	2,116
Loans held-for-sale, fair value	5,372	5,258
Loans held-for-investment	16,266	12,031
Mortgage servicing rights	323	291
Liabilities
Contingent consideration	0	(10)
Level 1 | Estimate of Fair Value Measurement
Assets
Investment securities available-for-sale	0	0
Loans held-for-sale, fair value	0	0
Loans held-for-investment	0	0
Mortgage servicing rights	0	0
Liabilities
Contingent consideration	0	0
Level 2 | Estimate of Fair Value Measurement
Assets
Investment securities available-for-sale	2,165	2,116
Loans held-for-sale, fair value	5,372	5,258
Loans held-for-investment	12	10
Mortgage servicing rights	0	0
Liabilities
Contingent consideration	0	0
Level 3 | Estimate of Fair Value Measurement
Assets
Investment securities available-for-sale	0	0
Loans held-for-sale, fair value	0	0
Loans held-for-investment	16,254	12,021
Mortgage servicing rights	323	291
Liabilities
Contingent consideration	0	(10)
Recurring | Estimate of Fair Value Measurement
Assets
Mortgage servicing rights	323	291
Total assets at fair value	8,183	7,700
Liabilities
DOJ Liability	(35)	(35)
Total liabilities at fair value	(81)	(63)
Recurring | Estimate of Fair Value Measurement | Rate lock commitments
Assets
Derivative assets	257	34
Liabilities
Derivative liabilities		(1)
Recurring | Estimate of Fair Value Measurement | Futures
Assets
Derivative assets	0
Recurring | Estimate of Fair Value Measurement | Mortgage-backed securities forwards
Assets
Derivative assets	9	2
Liabilities
Derivative liabilities	(37)	(9)
Recurring | Estimate of Fair Value Measurement | Interest rate swaps and swaptions
Assets
Derivative assets	66	26
Recurring | Estimate of Fair Value Measurement | Interest rate swaps
Liabilities
Derivative liabilities	(9)	(8)
Recurring | Estimate of Fair Value Measurement | Contingent consideration
Liabilities
Contingent consideration		(10)
Recurring | Estimate of Fair Value Measurement | Residential first mortgage loans
Assets
Loans held-for-sale, fair value	5,349	5,219
Loans held-for-investment	12	10
Recurring | Estimate of Fair Value Measurement | Home equity
Assets
Loans held-for-investment	2	2
Recurring | Estimate of Fair Value Measurement | Agency - Commercial
Assets
Investment securities available-for-sale	1,171	947
Recurring | Estimate of Fair Value Measurement | Agency - Residential
Assets
Investment securities available-for-sale	837	1,015
Recurring | Estimate of Fair Value Measurement | Municipal obligations
Assets
Investment securities available-for-sale	30	31
Recurring | Estimate of Fair Value Measurement | Corporate debt obligations
Assets
Investment securities available-for-sale	77	77
Recurring | Estimate of Fair Value Measurement | Other MBS
Assets
Investment securities available-for-sale	49	45
Recurring | Estimate of Fair Value Measurement | Certificates of deposit
Assets
Investment securities available-for-sale	1	1
Recurring | Level 1
Assets
Mortgage servicing rights	0	0
Total assets at fair value	0	0
Liabilities
DOJ Liability	0	0
Total liabilities at fair value	0	0
Recurring | Level 1 | Rate lock commitments
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities		0
Recurring | Level 1 | Futures
Assets
Derivative assets	0
Recurring | Level 1 | Mortgage-backed securities forwards
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Recurring | Level 1 | Interest rate swaps and swaptions
Assets
Derivative assets	0	0
Recurring | Level 1 | Interest rate swaps
Liabilities
Derivative liabilities	0	0
Recurring | Level 1 | Contingent consideration
Liabilities
Contingent consideration		0
Recurring | Level 1 | Residential first mortgage loans
Assets
Loans held-for-sale, fair value	0	0
Loans held-for-investment	0	0
Recurring | Level 1 | Home equity
Assets
Loans held-for-investment	0	0
Recurring | Level 1 | Agency - Commercial
Assets
Investment securities available-for-sale	0	0
Recurring | Level 1 | Agency - Residential
Assets
Investment securities available-for-sale	0	0
Recurring | Level 1 | Municipal obligations
Assets
Investment securities available-for-sale	0	0
Recurring | Level 1 | Corporate debt obligations
Assets
Investment securities available-for-sale	0	0
Recurring | Level 1 | Other MBS
Assets
Investment securities available-for-sale	0	0
Recurring | Level 1 | Certificates of deposit
Assets
Investment securities available-for-sale	0	0
Recurring | Level 2
Assets
Mortgage servicing rights	0	0
Total assets at fair value	7,601	7,373
Liabilities
DOJ Liability	0	0
Total liabilities at fair value	(46)	(17)
Recurring | Level 2 | Rate lock commitments
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities		0
Recurring | Level 2 | Futures
Assets
Derivative assets	0
Recurring | Level 2 | Mortgage-backed securities forwards
Assets
Derivative assets	9	2
Liabilities
Derivative liabilities	(37)	(9)
Recurring | Level 2 | Interest rate swaps and swaptions
Assets
Derivative assets	66	26
Recurring | Level 2 | Interest rate swaps
Liabilities
Derivative liabilities	(9)	(8)
Recurring | Level 2 | Contingent consideration
Liabilities
Contingent consideration		0
Recurring | Level 2 | Residential first mortgage loans
Assets
Loans held-for-sale, fair value	5,349	5,219
Loans held-for-investment	12	10
Recurring | Level 2 | Home equity
Assets
Loans held-for-investment	0	0
Recurring | Level 2 | Agency - Commercial
Assets
Investment securities available-for-sale	1,171	947
Recurring | Level 2 | Agency - Residential
Assets
Investment securities available-for-sale	837	1,015
Recurring | Level 2 | Municipal obligations
Assets
Investment securities available-for-sale	30	31
Recurring | Level 2 | Corporate debt obligations
Assets
Investment securities available-for-sale	77	77
Recurring | Level 2 | Other MBS
Assets
Investment securities available-for-sale	49	45
Recurring | Level 2 | Certificates of deposit
Assets
Investment securities available-for-sale	1	1
Recurring | Level 3
Assets
Mortgage servicing rights	323	291
Total assets at fair value	582	327
Liabilities
DOJ Liability	(35)	(35)
Total liabilities at fair value	(35)	(46)
Recurring | Level 3 | Rate lock commitments
Assets
Derivative assets	257	34
Liabilities
Derivative liabilities		(1)
Recurring | Level 3 | Futures
Assets
Derivative assets	0
Recurring | Level 3 | Mortgage-backed securities forwards
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Recurring | Level 3 | Interest rate swaps and swaptions
Assets
Derivative assets	0	0
Recurring | Level 3 | Interest rate swaps
Liabilities
Derivative liabilities	0	0
Recurring | Level 3 | Contingent consideration
Liabilities
Contingent consideration		(10)
Recurring | Level 3 | Residential first mortgage loans
Assets
Loans held-for-sale, fair value	0	0
Loans held-for-investment	0	0
Recurring | Level 3 | Home equity
Assets
Loans held-for-investment	2	2
Recurring | Level 3 | Agency - Commercial
Assets
Investment securities available-for-sale	0	0
Recurring | Level 3 | Agency - Residential
Assets
Investment securities available-for-sale	0	0
Recurring | Level 3 | Municipal obligations
Assets
Investment securities available-for-sale	0	0
Recurring | Level 3 | Corporate debt obligations
Assets
Investment securities available-for-sale	0	0
Recurring | Level 3 | Other MBS
Assets
Investment securities available-for-sale	0	0
Recurring | Level 3 | Certificates of deposit
Assets
Investment securities available-for-sale	$ 0	$ 0

Fair Value Measurements - Roll

Fair Value Measurements - Roll Forward of Financial Instruments Classified as Level 3 (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Liabilities
Unrealized gains (losses) recorded in OCI	$ 0	$ 0	$ 0	$ 0
Recurring | Level 3
Assets
Balance at Beginning of Period	468,000,000	368,000,000	327,000,000	312,000,000
Total Gains (Losses) Recorded in Earnings	67,000,000	(38,000,000)	143,000,000	(76,000,000)
Purchases / Closings	418,000,000	152,000,000	1,014,000,000	448,000,000
Sales	0	(12,000,000)	(46,000,000)	(57,000,000)
Settlement	0	0	0	0
Transfers Out	(371,000,000)	(133,000,000)	(856,000,000)	(290,000,000)
Balance at End of Period	582,000,000	337,000,000	582,000,000	337,000,000
Liabilities
Balance at Beginning of Period	(62,000,000)	(42,000,000)	(45,000,000)	(66,000,000)
Total Gains (Losses) Recorded in Earnings	0	(4,000,000)	(17,000,000)	20,000,000
Purchases / Closings	0	0	0	0
Sales	0	0	0	0
Settlement	27,000,000	3,000,000	27,000,000	3,000,000
Transfers Out	0	0	0	0
Balance at End of Period	(35,000,000)	(43,000,000)	(35,000,000)	(43,000,000)
Recurring | Level 3 | Home equity
Assets
Balance at Beginning of Period	2,000,000	2,000,000	2,000,000	2,000,000
Total Gains (Losses) Recorded in Earnings	0	0	0	0
Purchases / Closings	0	0	0	0
Sales	0	0	0	0
Settlement	0	0	0	0
Transfers Out	0	0	0	0
Balance at End of Period	2,000,000	2,000,000	2,000,000	2,000,000
Recurring | Level 3 | Mortgage servicing rights
Assets
Balance at Beginning of Period	261,000,000	316,000,000	291,000,000	290,000,000
Total Gains (Losses) Recorded in Earnings	(23,000,000)	(58,000,000)	(131,000,000)	(151,000,000)
Purchases / Closings	85,000,000	39,000,000	209,000,000	203,000,000
Sales	0	(12,000,000)	(46,000,000)	(57,000,000)
Settlement	0	0	0	0
Transfers Out	0	0	0	0
Balance at End of Period	323,000,000	285,000,000	323,000,000	285,000,000
Recurring | Level 3 | Rate lock commitments
Assets
Balance at Beginning of Period	205,000,000	50,000,000	34,000,000	20,000,000
Total Gains (Losses) Recorded in Earnings	90,000,000	20,000,000	274,000,000	75,000,000
Purchases / Closings	333,000,000	113,000,000	805,000,000	245,000,000
Sales	0	0	0	0
Settlement	0	0	0	0
Transfers Out	(371,000,000)	(133,000,000)	(856,000,000)	(290,000,000)
Balance at End of Period	257,000,000	50,000,000	257,000,000	50,000,000
Recurring | Level 3 | DOJ Liability
Liabilities
Balance at Beginning of Period	(35,000,000)	(35,000,000)	(35,000,000)	(60,000,000)
Total Gains (Losses) Recorded in Earnings	0	0	0	25,000,000
Purchases / Closings	0	0	0	0
Sales	0	0	0	0
Settlement	0	0	0	0
Transfers Out	0	0	0	0
Balance at End of Period	(35,000,000)	(35,000,000)	(35,000,000)	(35,000,000)
Recurring | Level 3 | Contingent consideration
Liabilities
Balance at Beginning of Period	(27,000,000)	(7,000,000)	(10,000,000)	(6,000,000)
Total Gains (Losses) Recorded in Earnings	0	(4,000,000)	(17,000,000)	(5,000,000)
Purchases / Closings	0	0	0	0
Sales	0	0	0	0
Settlement	27,000,000	3,000,000	27,000,000	3,000,000
Transfers Out	0	0	0	0
Balance at End of Period	$ 0	$ (8,000,000)	$ 0	$ (8,000,000)

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative Information about Recurring Level 3 Fair Value Instruments (Details) - Level 3 - Fair Value $ in Millions	Sep. 30, 2020USD ($)constantPrepaymentRatePerLoanconstant_default_rate_per_loanorginationPull-throughRatePerLoan$ / loandiscountRatePerLoanoptionAdjustedSpreadPerLoan	Dec. 31, 2019USD ($)optionAdjustedSpreadPerLoanorginationPull-throughRatePerLoanconstantPrepaymentRatePerLoanconstant_default_rate_per_loan$ / loandiscountRatePerLoan
Home equity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-investment | $	$ 2	$ 2
Home equity | Discount rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | discountRatePerLoan	0.072	0.072
Home equity | Discount rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | discountRatePerLoan	0.108	0.108
Home equity | Discount rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | discountRatePerLoan	0.090	0.090
Home equity | Constant prepayment rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constantPrepaymentRatePerLoan	0.231	0.130
Home equity | Constant prepayment rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constantPrepaymentRatePerLoan	0.347	0.195
Home equity | Constant prepayment rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constantPrepaymentRatePerLoan	0.289	0.162
Home equity | Constant default rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan	0.017	0.027
Home equity | Constant default rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan	0.026	0.040
Home equity | Constant default rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan	0.022	0.033
Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset | $	$ 323	$ 291
Mortgage servicing rights | Constant prepayment rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | constantPrepaymentRatePerLoan	0	0
Mortgage servicing rights | Constant prepayment rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | constantPrepaymentRatePerLoan	0.143	0.123
Mortgage servicing rights | Constant prepayment rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | constantPrepaymentRatePerLoan	0.114	0.106
Mortgage servicing rights | Option adjusted spread | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | optionAdjustedSpreadPerLoan	0.037	0.024
Mortgage servicing rights | Option adjusted spread | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | optionAdjustedSpreadPerLoan	0.212	0.204
Mortgage servicing rights | Option adjusted spread | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | optionAdjustedSpreadPerLoan	0.076	0.053
Mortgage servicing rights | Weighted average cost to service per loan | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | $ / loan	67	67
Mortgage servicing rights | Weighted average cost to service per loan | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | $ / loan	95	95
Mortgage servicing rights | Weighted average cost to service per loan | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset, measurement input | $ / loan	82	84
Rate lock commitments (net)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset | $	$ 257	$ 34
Rate lock commitments (net) | Closing pull-through rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan	0.806
Rate lock commitments (net) | Closing pull-through rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan	0.872
Rate lock commitments (net) | Closing pull-through rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan	0.819
Rate lock commitments (net) | Origination pull-through rate | Lower range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan		0.800
Rate lock commitments (net) | Origination pull-through rate | Upper range
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan		0.872
Rate lock commitments (net) | Origination pull-through rate | Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan		0.815
DOJ Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Litigation settlement at fair value | $	$ (35)	$ (35)
Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration | $		$ (10)

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Settlement liability	$ 7	$ 3
DOJ Agreement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment on settlement liability		25
Settlement liability		$ 35
Residential mortgage servicing rights capitalized | Measurement input, expected term | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average life	3 years 10 months 24 days	4 years 1 month 6 days

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-sale	$ 5,349		$ 5,349		$ 5,219
Total assets at fair value	5,362		5,362		5,231
Net gain on loan sales	346	$ 110	739	$ 234
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-sale	14		14		6
Total assets at fair value	41		41		30
Fair value gains (losses) on loans			(1)		(1)
Net gain on loan sales			(7)		(9)
Nonrecurring | Residential first mortgage loans | Residential first mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held-for-investment	21		21		14
Fair value gains (losses) on loans			(3)		(5)
Nonrecurring | Repossessed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Repossessed assets	6		6		10
Fair value gains (losses) on repossessed assets			(3)		(3)
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-sale	14		14		6
Total assets at fair value	14		14		6
Nonrecurring | Level 2 | Residential first mortgage loans | Residential first mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held-for-investment	0		0		0
Nonrecurring | Level 2 | Repossessed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Repossessed assets	0		0		0
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-sale	0		0		0
Total assets at fair value	27		27		24
Nonrecurring | Level 3 | Residential first mortgage loans | Residential first mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held-for-investment	21		21		14
Nonrecurring | Level 3 | Repossessed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Repossessed assets	$ 6		$ 6		$ 10

Fair Value Measurements - Qua_2

Fair Value Measurements - Quantitative Information about Nonrecurring Level 3 Fair Value Financial Instruments and the Fair Value Measurements (Details) - Nonrecurring - Level 3 $ in Millions	Sep. 30, 2020USD ($)loss_severity_discount_per_loan	Dec. 31, 2019USD ($)loss_severity_discount_per_loan
Residential first mortgage loans
Fair Value Inputs, Assets, Quantitative Information
Loans held-for-investment | $	$ 21	$ 14
Residential first mortgage loans | Lower range | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Loans held for investment, fair value input (in percentage)	0	0.25
Residential first mortgage loans | Upper range | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Loans held for investment, fair value input (in percentage)	1	0.30
Residential first mortgage loans | Weighted average | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Loans held for investment, fair value input (in percentage)	0.124	0.259
Repossessed assets
Fair Value Inputs, Assets, Quantitative Information
Loans held-for-investment | $	$ 6	$ 10
Repossessed assets | Lower range | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Other real estate owned, fair value input (in percentage)	0	0
Repossessed assets | Upper range | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Other real estate owned, fair value input (in percentage)	0.963	1
Repossessed assets | Weighted average | Loss severity discount
Fair Value Inputs, Assets, Quantitative Information
Other real estate owned, fair value input (in percentage)	0.318	0.171

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
Investment securities available-for-sale	$ 2,165	$ 2,116
Investment securities held-to-maturity	458	599
Loans held-for-sale	5,349	5,219
Loans held-for-investment	14	12
Mortgage servicing rights	323	291
Carrying Value
Assets
Cash and cash equivalents	280	426
Investment securities available-for-sale	2,165	2,116
Investment securities held-to-maturity	440	598
Loans held-for-sale	5,372	5,258
Loans held-for-investment	16,476	12,129
Loans with government guarantees	2,500	736
Mortgage servicing rights	323	291
Federal Home Loan Bank stock	377	303
Bank owned life insurance	355	349
Repossessed assets	6	10
Other assets, foreclosure claims	22	45
Derivative financial instruments, assets	332	62
Liabilities
Federal Home Loan Bank advances and other	(3,426)	(4,815)
Long-term debt	(493)	(496)
DOJ Liability	(35)	(35)
Contingent consideration	0	(10)
Derivative financial instruments, liabilities	(46)	(18)
Carrying Value | Demand deposits and savings accounts
Liabilities
Deposits	(8,223)	(6,811)
Carrying Value | Certificates of deposit
Liabilities
Deposits	(1,525)	(2,353)
Carrying Value | Wholesale deposits
Liabilities
Deposits	(1,034)	(633)
Carrying Value | Government deposits
Liabilities
Deposits	(1,748)	(1,213)
Carrying Value | Company controlled deposits
Liabilities
Deposits	(7,416)
Carrying Value | Custodial deposits
Liabilities
Deposits		(4,136)
Estimated Fair Value
Assets
Cash and cash equivalents	280	426
Investment securities available-for-sale	2,165	2,116
Investment securities held-to-maturity	458	599
Loans held-for-sale	5,372	5,258
Loans held-for-investment	16,266	12,031
Loans with government guarantees	2,480	707
Mortgage servicing rights	323	291
Federal Home Loan Bank stock	377	303
Bank owned life insurance	355	349
Repossessed assets	6	10
Other assets, foreclosure claims	22	45
Derivative financial instruments, assets	332	88
Liabilities
Federal Home Loan Bank advances and other	(3,455)	(4,816)
Long-term debt	(449)	(462)
DOJ Liability	(35)	(35)
Contingent consideration	0	(10)
Derivative financial instruments, liabilities	(46)	(44)
Estimated Fair Value | Demand deposits and savings accounts
Liabilities
Deposits	(7,634)	(6,050)
Estimated Fair Value | Certificates of deposit
Liabilities
Deposits	(1,539)	(2,368)
Estimated Fair Value | Wholesale deposits
Liabilities
Deposits	(1,053)	(640)
Estimated Fair Value | Government deposits
Liabilities
Deposits	(1,703)	(1,156)
Estimated Fair Value | Company controlled deposits
Liabilities
Deposits	(7,377)
Estimated Fair Value | Custodial deposits
Liabilities
Deposits		(4,066)
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	280	426
Investment securities available-for-sale	0	0
Investment securities held-to-maturity	0	0
Loans held-for-sale	0	0
Loans held-for-investment	0	0
Loans with government guarantees	0	0
Mortgage servicing rights	0	0
Federal Home Loan Bank stock	0	0
Bank owned life insurance	0	0
Repossessed assets	0	0
Other assets, foreclosure claims	0	0
Derivative financial instruments, assets	0	0
Liabilities
Federal Home Loan Bank advances and other	0	0
Long-term debt	0	0
DOJ Liability	0	0
Contingent consideration	0	0
Derivative financial instruments, liabilities	0	0
Estimated Fair Value | Level 1 | Demand deposits and savings accounts
Liabilities
Deposits	0	0
Estimated Fair Value | Level 1 | Certificates of deposit
Liabilities
Deposits	0	0
Estimated Fair Value | Level 1 | Wholesale deposits
Liabilities
Deposits	0	0
Estimated Fair Value | Level 1 | Government deposits
Liabilities
Deposits	0	0
Estimated Fair Value | Level 1 | Company controlled deposits
Liabilities
Deposits	0
Estimated Fair Value | Level 1 | Custodial deposits
Liabilities
Deposits		0
Estimated Fair Value | Level 2
Assets
Cash and cash equivalents	0	0
Investment securities available-for-sale	2,165	2,116
Investment securities held-to-maturity	458	599
Loans held-for-sale	5,372	5,258
Loans held-for-investment	12	10
Loans with government guarantees	2,480	707
Mortgage servicing rights	0	0
Federal Home Loan Bank stock	377	303
Bank owned life insurance	355	349
Repossessed assets	0	0
Other assets, foreclosure claims	22	45
Derivative financial instruments, assets	75	54
Liabilities
Federal Home Loan Bank advances and other	(3,455)	(4,816)
Long-term debt	(449)	(462)
DOJ Liability	0	0
Contingent consideration	0	0
Derivative financial instruments, liabilities	(46)	(43)
Estimated Fair Value | Level 2 | Demand deposits and savings accounts
Liabilities
Deposits	(7,634)	(6,050)
Estimated Fair Value | Level 2 | Certificates of deposit
Liabilities
Deposits	(1,539)	(2,368)
Estimated Fair Value | Level 2 | Wholesale deposits
Liabilities
Deposits	(1,053)	(640)
Estimated Fair Value | Level 2 | Government deposits
Liabilities
Deposits	(1,703)	(1,156)
Estimated Fair Value | Level 2 | Company controlled deposits
Liabilities
Deposits	(7,377)
Estimated Fair Value | Level 2 | Custodial deposits
Liabilities
Deposits		(4,066)
Estimated Fair Value | Level 3
Assets
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 held-for-investment	16,254	12,021
Loans with government guarantees	0	0
Mortgage servicing rights	323	291
Federal Home Loan Bank stock	0	0
Bank owned life insurance	0	0
Repossessed assets	6	10
Other assets, foreclosure claims	0	0
Derivative financial instruments, assets	257	34
Liabilities
Federal Home Loan Bank advances and other	0	0
Long-term debt	0	0
DOJ Liability	(35)	(35)
Contingent consideration	0	(10)
Derivative financial instruments, liabilities	0	(1)
Estimated Fair Value | Level 3 | Demand deposits and savings accounts
Liabilities
Deposits	0	0
Estimated Fair Value | Level 3 | Certificates of deposit
Liabilities
Deposits	0	0
Estimated Fair Value | Level 3 | Wholesale deposits
Liabilities
Deposits	0	0
Estimated Fair Value | Level 3 | Government deposits
Liabilities
Deposits	0	0
Estimated Fair Value | Level 3 | Company controlled deposits
Liabilities
Deposits	$ 0
Estimated Fair Value | Level 3 | Custodial deposits
Liabilities
Deposits		$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Loans held-for-sale | Net gain on loan sales
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value included in earnings	$ 340	$ 97	$ 899	$ 272
Loans held-for-investment | Other noninterest income
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value included in earnings	0	1	0	1
DOJ Liability | Other noninterest income
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value included in earnings	$ 0	$ 0	$ 0	$ 25

Fair Value Measurements - Diffe

Fair Value Measurements - Differences Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding (Details) - USD ($) $ in Millions	Feb. 24, 2012	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		$ 5,146	$ 5,073
Total assets at fair value		5,362	5,231
Assets, fair value over/(under) UPB		216	158
Litigation settlement
Fair Value, Option, Quantitative Disclosures [Line Items]
Litigation settlement payment amount	$ 118
Nonaccrual loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		15	8
Total assets at fair value		13	7
Assets, fair value over/(under) UPB		(2)	(1)
Other performing loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		5,131	5,065
Total assets at fair value		5,349	5,224
Assets, fair value over/(under) UPB		218	159
Loans held-for-sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		5,131	5,060
Total assets at fair value		5,349	5,219
Assets, fair value over/(under) UPB		218	159
Loans held-for-sale | Nonaccrual loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		6	3
Total assets at fair value		5	3
Assets, fair value over/(under) UPB		(1)	0
Loans held-for-sale | Other performing loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		5,125	5,057
Total assets at fair value		5,344	5,216
Assets, fair value over/(under) UPB		219	159
Loans held-for-investment
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		15	13
Total assets at fair value		13	12
Assets, fair value over/(under) UPB		(2)	(1)
Loans held-for-investment | Nonaccrual loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		9	5
Total assets at fair value		8	4
Assets, fair value over/(under) UPB		(1)	(1)
Loans held-for-investment | Other performing loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets, unpaid principal balance (UPB)		6	8
Total assets at fair value		5	8
Assets, fair value over/(under) UPB		(1)	0
DOJ Liability
Fair Value, Option, Quantitative Disclosures [Line Items]
Liabilities, unpaid principal balance (UPB)		(118)	(118)
Long-term debt, fair value		(35)	(35)
Liabilities, fair value over/(under) UPB		$ 83	$ 83

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segments	Sep. 30, 2019USD ($)
Segment Reporting [Abstract]
Number of operating segments | segments			3
Summary of Operations
Net interest income	$ 180	$ 146	$ 496	$ 410
Provision (benefit) for credit losses	32	1	148	18
Net interest income after provision for credit losses	148	145	348	392
Net gain on loan sales	346	110	739	234
Loan fees and charges	45	29	112	70
Net return on mortgage servicing rights	12	(2)	10	9
Loan administrative (expense) income	26	5	59	22
Other noninterest income	23	29	68	113
Total noninterest income	452	171	988	448
Compensation and benefits	123	98	341	275
Commissions	72	38	162	76
Loan processing expense	24	22	69	60
Other noninterest expense	86	80	265	232
Total noninterest expense	305	238	837	643
Income (loss) before indirect overhead allocations and income taxes	295	78	499	197
Indirect overhead allocation income (expense)	0	0	0	0
Provision (benefit) for income taxes	73	15	115	37
Net income	222	63	384	160
Average balances
Loans held-for-sale	5,602	3,786	5,499	3,532
Loans with government guarantees	2,122	574	1,267	511
Loans held-for-investment	14,839	11,743	13,424	10,516
Total assets	28,277	21,197	25,992	19,877
Deposits	19,561	15,817	17,698	14,305
Other
Summary of Operations
Net interest income	(32)	(1)	(60)	0
Provision (benefit) for credit losses	37	3	153	4
Net interest income after provision for credit losses	(69)	(4)	(213)	(4)
Net gain on loan sales	0	0	0	1
Loan fees and charges	0	1	0	0
Net return on mortgage servicing rights	0	0	0	0
Loan administrative (expense) income	(3)	(19)	(26)	(50)
Other noninterest income	5	9	20	58
Total noninterest income	2	(9)	(6)	9
Compensation and benefits	41	35	118	100
Commissions	0	1	0	0
Loan processing expense	0	1	2	2
Other noninterest expense	(30)	(1)	(137)	1
Total noninterest expense	11	36	(17)	103
Income (loss) before indirect overhead allocations and income taxes	(78)	(49)	(202)	(98)
Indirect overhead allocation income (expense)	33	24	91	73
Provision (benefit) for income taxes	2	(6)	(13)	(9)
Net income	(47)	(19)	(98)	(16)
Average balances
Loans held-for-sale	0	0	0	0
Loans with government guarantees	0	0	0	0
Loans held-for-investment	30	29	29	29
Total assets	4,401	3,597	4,288	3,862
Deposits	967	748	767	522
Intersegment Eliminations
Summary of Operations
Intersegment (expense) revenue	24	(9)	116	(24)
Community Banking | Operating Segments
Summary of Operations
Net interest income	158	105	395	296
Provision (benefit) for credit losses	(2)	0	3	17
Net interest income after provision for credit losses	160	105	392	279
Net gain on loan sales	2	(4)	2	(10)
Loan fees and charges	0	0	1	1
Net return on mortgage servicing rights	0	0	0	0
Loan administrative (expense) income	(1)	(1)	(2)	(3)
Other noninterest income	15	18	43	46
Total noninterest income	16	13	44	34
Compensation and benefits	28	27	79	77
Commissions	1	0	2	1
Loan processing expense	1	1	4	5
Other noninterest expense	63	42	231	125
Total noninterest expense	93	70	316	208
Income (loss) before indirect overhead allocations and income taxes	83	48	120	105
Indirect overhead allocation income (expense)	(11)	(10)	(31)	(30)
Provision (benefit) for income taxes	15	8	19	16
Net income	57	30	70	59
Average balances
Loans held-for-sale	0	20	0	37
Loans with government guarantees	0	0	0	0
Loans held-for-investment	12,311	11,681	10,702	10,465
Total assets	12,603	12,184	11,100	10,950
Deposits	11,265	10,513	10,817	10,247
Community Banking | Intersegment Eliminations
Summary of Operations
Intersegment (expense) revenue	(22)	(6)	(97)	(14)
Mortgage Originations | Operating Segments
Summary of Operations
Net interest income	49	37	147	103
Provision (benefit) for credit losses	(3)	(2)	(8)	(3)
Net interest income after provision for credit losses	52	39	155	106
Net gain on loan sales	344	114	737	243
Loan fees and charges	29	20	68	47
Net return on mortgage servicing rights	12	(2)	10	9
Loan administrative (expense) income	(10)	(7)	(25)	(16)
Other noninterest income	3	2	5	9
Total noninterest income	378	127	795	292
Compensation and benefits	42	29	111	79
Commissions	71	37	160	75
Loan processing expense	15	10	39	23
Other noninterest expense	32	25	114	63
Total noninterest expense	160	101	424	240
Income (loss) before indirect overhead allocations and income taxes	270	65	526	158
Indirect overhead allocation income (expense)	(18)	(10)	(45)	(30)
Provision (benefit) for income taxes	53	11	101	26
Net income	199	44	380	102
Average balances
Loans held-for-sale	5,602	3,766	5,499	3,495
Loans with government guarantees	2,122	574	1,267	511
Loans held-for-investment	2,498	33	2,693	22
Total assets	11,195	5,378	10,539	5,018
Deposits	0	0	0	0
Mortgage Originations | Intersegment Eliminations
Summary of Operations
Intersegment (expense) revenue	(12)	8	(46)	19
Mortgage Servicing | Operating Segments
Summary of Operations
Net interest income	5	5	14	11
Provision (benefit) for credit losses	0	0	0	0
Net interest income after provision for credit losses	5	5	14	11
Net gain on loan sales	0	0	0	0
Loan fees and charges	16	8	43	22
Net return on mortgage servicing rights	0	0	0	0
Loan administrative (expense) income	40	32	112	91
Other noninterest income	0	0	0	0
Total noninterest income	56	40	155	113
Compensation and benefits	12	7	33	19
Commissions	0	0	0	0
Loan processing expense	8	10	24	30
Other noninterest expense	21	14	57	43
Total noninterest expense	41	31	114	92
Income (loss) before indirect overhead allocations and income taxes	20	14	55	32
Indirect overhead allocation income (expense)	(4)	(4)	(15)	(13)
Provision (benefit) for income taxes	3	2	8	4
Net income	13	8	32	15
Average balances
Loans held-for-sale	0	0	0	0
Loans with government guarantees	0	0	0	0
Loans held-for-investment	0	0	0	0
Total assets	78	38	65	47
Deposits	7,329	4,556	6,114	3,536
Mortgage Servicing | Intersegment Eliminations
Summary of Operations
Intersegment (expense) revenue	$ 10	$ 7	$ 27	$ 19

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)		Oct. 28, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Subsequent Event [Line Items]
Interest rate			6.125%		6.125%
Repurchase of shares	[1]		$ 0	$ 50,000,000
Subsequent event | MP Thrift
Subsequent Event [Line Items]
Repurchase of shares (in shares)		4,587,647
Repurchase of shares		$ 150,000,000
Share price (in dollars per share)		$ 32.70
Subsequent event | Subordinated Debt
Subsequent Event [Line Items]
Debt instrument, face amount		$ 150,000,000
Interest rate		4.125%
[1]	Includes dividend reinvestment shares