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Loans Receivable, Net (Tables)
12 Months Ended
Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Total Loans Receivable, Net

The following table presents loans receivable at December 31, 2017 and 2016 disaggregated by delinquency status (dollars in millions):
 
 
Days Past Due
 
 
 
 
 
Current
30-89
90-179
180+
Total
Unamortized premiums, net
Allowance for loans losses
Loans Receivable, Net
December 31, 2017
 
 
 
 
 
 
 
 
One- to four-family
$
1,269

$
59

$
22

$
82

$
1,432

$
9

$
(24
)
$
1,417

Home equity
1,014

36

15

32

1,097


(46
)
1,051

Consumer and other
185

3



188

2

(4
)
186

Total loans receivable
$
2,468

$
98

$
37

$
114

$
2,717

$
11

$
(74
)
$
2,654

 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
One- to four-family
$
1,774

$
67

$
23

$
86

$
1,950

$
13

$
(45
)
$
1,918

Home equity
1,442

43

18

53

1,556


(171
)
1,385

Consumer and other
245

4

1


250

3

(5
)
248

Total loans receivable
$
3,461

$
114

$
42

$
139

$
3,756

$
16

$
(221
)
$
3,551

Credit Quality Indicators for Loan Portfolio
The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at December 31, 2017 and 2016 (dollars in millions):
 
One- to Four-Family
 
Home Equity
 
December 31,
 
December 31,
Current LTV/CLTV(1)
2017
 
2016
 
2017
 
2016
<=80%
$
1,031

 
$
1,308

 
$
531

 
$
686

80%-100%
256

 
413

 
291

 
414

100%-120%
91

 
143

 
176

 
274

>120%
54

 
86

 
99

 
182

Total mortgage loans receivable
$
1,432

 
$
1,950

 
$
1,097

 
$
1,556

Average estimated current LTV/CLTV (2)
70
%
 
73
%
 
84
%
 
87
%
Average LTV/CLTV at loan origination (3)
71
%
 
71
%
 
81
%
 
81
%
 
(1)
Current CLTV calculations for home equity loans are based on the maximum available line for HELOCs and outstanding principal balance for HEILs. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Current property value estimates are updated on a quarterly basis.
(2)
The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for HELOCs, divided by the estimated current value of the underlying property.
(3)
Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans, HEILs and the maximum available line for HELOCs.
 
One- to Four-Family
 
Home Equity
 
December 31,
 
December 31,
Current FICO
2017
 
2016
 
2017
 
2016
>=720
$
805

 
$
1,121

 
$
548

 
$
778

719 - 700
138

 
179

 
106

 
156

699 - 680
105

 
153

 
93

 
141

679 - 660
78

 
121

 
79

 
117

659 - 620
122

 
154

 
103

 
149

<620
184

 
222

 
168

 
215

Total mortgage loans receivable
$
1,432

 
$
1,950

 
$
1,097

 
$
1,556

Loans by Delinquency Category and Non-Performing Loans
The following table shows the comparative data for nonperforming loans at December 31, 2017 and 2016 (dollars in millions):
 
December 31,
 
2017
 
2016
One- to four-family
$
192

 
$
215

Home equity
98

 
136

Consumer and other

 
1

Total nonperforming loans receivable
$
290

 
$
352

Loans Receivable, Allowance for Loan Losses
The following table provides a roll forward by loan portfolio of the allowance for loan losses for the years ended December 31, 2017, 2016 and 2015 (dollars in millions):
 
Year Ended December 31, 2017
 
One- to
Four-Family
 
Home
Equity
 
Consumer and other
 
Total
Allowance for loan losses, beginning of period
$
45

 
$
171

 
$
5

 
$
221

Provision (benefit) for loan losses
(29
)
 
(141
)
 
2

 
(168
)
Charge-offs

 
(7
)
 
(6
)
 
(13
)
Recoveries
8

 
23

 
3

 
34

Net (charge-offs) recoveries
8

 
16

 
(3
)
 
21

Allowance for loan losses, end of period
$
24

 
$
46

 
$
4

 
$
74

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
One- to
Four-Family
 
Home
Equity
 
Consumer and other
 
Total
Allowance for loan losses, beginning of period
$
40

 
$
307

 
$
6

 
$
353

Provision (benefit) for loan losses
(2
)
 
(148
)
 
1

 
(149
)
Charge-offs
(1
)
 
(17
)
 
(7
)
 
(25
)
Recoveries
8

 
29

 
5

 
42

Net (charge-offs) recoveries
7

 
12

 
(2
)
 
17

Allowance for loan losses, end of period
$
45

 
$
171

 
$
5

 
$
221

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
One- to
Four-Family
 
Home
Equity
 
Consumer and other
 
Total
Allowance for loan losses, beginning of period
$
27

 
$
367

 
$
10

 
$
404

Provision (benefit) for loan losses
15

 
(55
)
 

 
(40
)
Charge-offs
(2
)
 
(31
)
 
(11
)
 
(44
)
Recoveries

 
26

 
7

 
33

Net (charge-offs) recoveries
(2
)
 
(5
)
 
(4
)
 
(11
)
Allowance for loan losses, end of period
$
40

 
$
307

 
$
6

 
$
353

The following table presents the allowance for loan losses by loan portfolio at December 31, 2017 and 2016 (dollars in millions): 
 
One- to Four-Family
 
Home Equity
 
Consumer and other
 
Total
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
General reserve:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative component
$
15

 
$
34

 
$
14

 
$
118

 
$
4

 
$
5

 
$
33

 
$
157

Qualitative component
3

 
4

 
3

 
2

 

 

 
6

 
6

Specific valuation allowance
6

 
7

 
29

 
51

 

 

 
35

 
58

Total allowance for loan losses
$
24

 
$
45

 
$
46

 
$
171

 
$
4

 
$
5

 
$
74

 
$
221

Allowance as a % of loans
receivable
(1)
1.6
%

2.3
%
 
4.2
%
 
11.0
%
 
2.1
%
 
1.9
%
 
2.7
%
 
5.8
%
(1)
Allowance as a percentage of loans receivable is calculated based on the gross loans receivable including net unamortized premiums for each respective category.
The following table presents the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment by loan class at December 31, 2017 and 2016 (dollars in millions):
 
Recorded Investment
 
Allowance for Loan Losses
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
Collectively evaluated for impairment:
 
 
 
 
 
 
 
One- to four-family
$
1,228

 
$
1,717

 
$
18

 
$
38

Home equity
932

 
1,361

 
17

 
120

Consumer and other
190

 
253

 
4

 
5

Total collectively evaluated for impairment
2,350

 
3,331

 
39

 
163

Individually evaluated for impairment:
 
 
 
 
 
 
 
One- to four-family
213

 
246

 
6

 
7

Home equity
165

 
195

 
29

 
51

Total individually evaluated for impairment
378

 
441

 
35

 
58

Total
$
2,728

 
$
3,772

 
$
74

 
$
221

Impaired Financing Receivables
The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at December 31, 2017 and 2016 (dollars in millions):
  
 
 
Nonaccrual TDRs
 
 
 
Accrual 
TDRs(1)
 
Current(2)
 
30-89 Days
Delinquent
 
90-179 Days
Delinquent
 
180+ Days
Delinquent
 
Total Recorded
Investment in 
TDRs (3)(4)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
$
83

 
$
74

 
$
13

 
$
5

 
$
38

 
$
213

Home equity
104

 
34

 
10

 
4

 
13

 
165

Total
$
187

 
$
108

 
$
23

 
$
9

 
$
51

 
$
378

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
$
97

 
$
90

 
$
16

 
$
8

 
$
35

 
$
246

Home equity
119

 
41

 
10

 
4

 
21

 
195

Total
$
216

 
$
131

 
$
26

 
$
12

 
$
56

 
$
441


(1)
Represents loans modified as TDRs that are current and have made six or more consecutive payments.
(2)
Represents loans modified as TDRs that are current but have not yet made six consecutive payments, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien.
(3)
Total recorded investment in TDRs includes premium (discount), as applicable, and is net of charge-offs, which were $67 million and $144 million for one-to four-family and home equity loans, respectively, as of December 31, 2017 and $79 million and $178 million, respectively, as of December 31, 2016.
(4)
Total recorded investment in TDRs at December 31, 2017 consisted of $285 million of loans modified as TDRs and $93 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2016 consisted of $316 million of loans modified as TDRs and $125 million of loans that have been charged off due to bankruptcy notification.
The following table shows detailed information related to the Company’s TDRs and specific valuation allowances at December 31, 2017 and 2016 (dollars in millions):
  
December 31, 2017
 
December 31, 2016
 
Recorded
Investment
in TDRs
 
Specific
Valuation
Allowance
 
Net
Investment
in TDRs
 
Recorded
Investment
in TDRs
 
Specific
Valuation
Allowance
 
Net
Investment
in TDRs
With a recorded allowance:
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
$
54

 
$
6

 
$
48

 
$
61

 
$
7

 
$
54

Home equity
$
83

 
$
29

 
$
54

 
$
111

 
$
51

 
$
60

Without a recorded allowance:(1)
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
$
159

 
$

 
$
159

 
$
185

 
$

 
$
185

Home equity
$
82

 
$

 
$
82

 
$
84

 
$

 
$
84

Total:
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
$
213

 
$
6

 
$
207

 
$
246

 
$
7

 
$
239

Home equity
$
165

 
$
29

 
$
136

 
$
195

 
$
51

 
$
144

(1)
Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan.
The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the years ended December 31, 2017, 2016 and 2015 (dollars in millions):
 
Average Recorded Investment
 
Interest Income Recognized
 
December 31,
 
December 31,
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
One- to four-family
$
221

 
$
269

 
$
303

 
$
9

 
$
11

 
$
9

Home equity
179

 
204

 
213

 
16

 
17

 
17

Total
$
400

 
$
473

 
$
516

 
$
25

 
$
28

 
$
26

Troubled Debt Restructurings - Modifications
The following tables provide the number of loans and post-modification balances immediately after being modified by major class during the years ended December 31, 2017, 2016 and 2015 (dollars in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Reduction
 
 
 
 
 
Number of
Loans
 
Principal Forgiven
 
Deferred Principal
 
Re-age/
Extension/
Interest
Capitalization
 
Other with
Interest Rate
Reduction
 
Other(1)
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
40

 
$

 
$

 
$
13

 
$
1

 
$
4

 
$
18

Home equity
294

 

 

 
12

 
1

 
9

 
22

Total
334

 
$

 
$

 
$
25

 
$
2

 
$
13

 
$
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
47

 
$
1

 
$

 
$
8

 
$
2

 
$
7

 
$
18

Home equity
518

 

 

 
8

 
3

 
25

 
36

Total
565

 
$
1

 
$

 
$
16

 
$
5

 
$
32

 
$
54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
34

 
$

 
$
1

 
$
9

 
$

 
$
3

 
$
13

Home equity
367

 

 

 
3

 
2

 
19

 
24

Total
401

 
$

 
$
1

 
$
12

 
$
2

 
$
22

 
$
37


(1)
Amounts represent loans whose terms were modified in a manner that did not result in an interest rate reduction, including re-aged loans, extensions, and loans with capitalized interest.