Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Inputs, Assets, Quantitative Information

The weighted average coupon rates for the available-for-sale mortgage-backed securities at December 31, 2015 are shown in the following table:



	Weighted Average Coupon Rate
Agency mortgage-backed securities	2.85	%
Agency CMOs	2.73	%

The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at December 31, 2015 and 2014:



	Unobservable Inputs	Average		Range
December 31, 2015
Loans receivable:
One- to four-family	Appraised value	$	422,900	$8,500-$1,900,000
Home equity	Appraised value	$	274,100	$9,000-$1,300,000
Real estate owned	Appraised value	$	330,700	$26,500-$1,250,000

December 31, 2014
Loans receivable:
One- to four-family	Appraised value	$	378,700	$37,000-$1,800,000
Home equity	Appraised value	$	280,400	$9,000-$1,190,000
Real estate owned	Appraised value	$	342,800	$5,000-$1,950,000

Fair Value Measurements, Recurring and Nonrecurring

Assets and liabilities measured at fair value at December 31, 2015 and 2014 are summarized in the following tables (dollars in millions):



	Level 1		Level 2		Level 3		Total Fair Value
December 31, 2015:
Recurring fair value measurements:
Assets
Available-for-sale securities:
Debt securities:
Agency mortgage-backed securities and CMOs	$	—	$	11,763	$	—	$	11,763
Agency debentures	—		557		—		557
U.S. Treasuries	—		143		—		143
Agency debt securities	—		55		—		55
Municipal bonds	—		35		—		35
Corporate bonds	—		4		—		4
Total debt securities	—		12,557		—		12,557
Publicly traded equity securities	32		—		—		32
Total available-for-sale securities	32		12,557		—		12,589
Other assets:
Derivative assets⁽¹⁾	—		10		—		10
Total assets measured at fair value on a recurring basis⁽²⁾	$	32	$	12,567	$	—	$	12,599
Liabilities
Derivative liabilities⁽¹⁾	$	—	$	55	$	—	$	55
Total liabilities measured at fair value on a recurring basis⁽²⁾	$	—	$	55	$	—	$	55
Nonrecurring fair value measurements:
Loans receivable:
One- to four-family	$	—	$	—	$	41	$	41
Home equity	—		—		22		22
Total loans receivable	—		—		63		63
Real estate owned	—		—		26		26
Total assets measured at fair value on a nonrecurring basis⁽³⁾	$	—	$	—	$	89	$	89


(1)	All derivative assets and liabilities were interest rate contracts at December 31, 2015. Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities.


(2)	Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2015.


(3)	Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2015, and for which a fair value measurement was recorded during the period.



	Level 1		Level 2		Level 3		Total Fair Value
December 31, 2014:
Recurring fair value measurements:
Assets
Available-for-sale securities:
Debt securities:
Agency mortgage-backed securities and CMOs	$	—	$	11,164	$	—	$	11,164
Agency debentures	—		648		—		648
Agency debt securities	—		499		—		499
Municipal bonds	—		40		—		40
Corporate bonds	—		4		—		4
Total debt securities	—		12,355		—		12,355
Publicly traded equity securities	33		—		—		33
Total available-for-sale securities	33		12,355		—		12,388
Other assets:
Derivative assets⁽¹⁾	—		24		—		24
Total assets measured at fair value on a recurring basis⁽²⁾	$	33	$	12,379	$	—	$	12,412
Liabilities
Derivative liabilities⁽¹⁾	$	—	$	66	$	—	$	66
Total liabilities measured at fair value on a recurring basis⁽²⁾	$	—	$	66	$	—	$	66
Nonrecurring fair value measurements:
Loans receivable:
One- to four-family	$	—	$	—	$	46	$	46
Home equity	—		—		32		32
Total loans receivable	—		—		78		78
Real estate owned	—		—		38		38
Total assets measured at fair value on a nonrecurring basis⁽³⁾	$	—	$	—	$	116	$	116


(1)	All derivative assets and liabilities were interest rate contracts at December 31, 2014. Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities.


(2)	Assets and liabilities measured at fair value on a recurring basis represented 27% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2014.


(3)	Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2014, and for which a fair value measurement was recorded during the period.

Gains and Losses, Fair Value Measurements, Nonrecurring

The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the years ended December 31, 2015, 2014 and 2013 (dollars in millions):



	December 31,
	2015		2014			2013
One- to four-family	$	7	$	10		$	40
Home equity	14		30			58
Total losses on loans receivable measured at fair value	$	21	$	40		$	98
Losses (gains) on real estate owned measured at fair value	$	—	$	(2	)	$	(1	)
Losses on goodwill measured at fair value	$	—	$	—		$	142

Fair Value, by Balance Sheet Grouping

The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at December 31, 2015 and December 31, 2014 (dollars in millions):



	December 31, 2015
	Carrying Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Cash and equivalents	$	2,233	$	2,233	$	—	$	—	$	2,233
Cash required to be segregated under federal or other regulations	$	1,057	$	1,057	$	—	$	—	$	1,057
Held-to-maturity securities:
Agency mortgage-backed securities and CMOs	$	10,353	$	—	$	10,444	$	—	$	10,444
Agency debentures	127		—		125		—		125
Agency debt securities	2,523		—		2,544		—		2,544
Other non-agency debt securities	10		—		—		10		10
Total held-to-maturity securities	$	13,013	$	—	$	13,113	$	10	$	13,123
Receivables from brokers, dealers and clearing organizations	$	520	$	—	$	520	$	—	$	520
Margin receivables	$	7,398	$	—	$	7,398	$	—	$	7,398
Loans receivable, net:
One- to four-family	$	2,465	$	—	$	—	$	2,409	$	2,409
Home equity	1,810		—		—		1,660		1,660
Consumer and other	338		—		—		343		343
Total loans receivable, net⁽¹⁾	$	4,613	$	—	$	—	$	4,412	$	4,412
Liabilities
Deposits	$	29,445	$	—	$	29,444	$	—	$	29,444
Payables to brokers, dealers and clearing organizations	$	1,576	$	—	$	1,576	$	—	$	1,576
Customer payables	$	6,544	$	—	$	6,544	$	—	$	6,544
Other borrowings:
Securities sold under agreements to repurchase	$	82	$	—	$	82	$	—	$	82
Trust preferred securities	$	409	$	—	$	—	$	252	$	252
Total other borrowings	$	491	$	—	$	82	$	252	$	334
Corporate debt	$	997	$	—	$	1,055	$	—	$	1,055


(1)	The carrying value of loans receivable, net includes the allowance for loan losses of $353 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2015.



	December 31, 2014
	Carrying Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Cash and equivalents	$	1,783	$	1,783	$	—	$	—	$	1,783
Cash required to be segregated under federal or other regulations	$	555	$	555	$	—	$	—	$	555
Held-to-maturity securities:
Agency mortgage-backed securities and CMOs	$	9,793	$	—	$	9,971	$	—	$	9,971
Agency debentures	164		—		166		—		166
Agency debt securities	2,281		—		2,329		—		2,329
Other non-agency debt securities	10		—		—		10		10
Total held-to-maturity securities	$	12,248	$	—	$	12,466	$	10	$	12,476
Receivables from brokers, dealers and clearing organizations	$	884	$	—	$	884	$	—	$	884
Margin receivables	$	7,675	$	—	$	7,675	$	—	$	7,675
Loans receivable, net:
One- to four-family	$	3,053	$	—	$	—	$	2,742	$	2,742
Home equity	2,475		—		—		2,274		2,274
Consumer and other	451		—		—		449		449
Total loans receivable, net⁽¹⁾	$	5,979	$	—	$	—	$	5,465	$	5,465
Liabilities
Deposits	$	24,890	$	—	$	24,890	$	—	$	24,890
Payables to brokers, dealers and clearing organizations	$	1,699	$	—	$	1,699	$	—	$	1,699
Customer payables	$	6,455	$	—	$	6,455	$	—	$	6,455
Other borrowings:
Securities sold under agreements to repurchase	$	3,672	$	—	$	3,681	$	—	$	3,681
FHLB advances and trust preferred securities	$	1,299	$	—	$	922	$	252	$	1,174
Total other borrowings	$	4,971	$	—	$	4,603	$	252	$	4,855
Corporate debt	$	1,366	$	—	$	1,491	$	—	$	1,491


(1)	The carrying value of loans receivable, net includes the allowance for loan losses of $404 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2014.