Loans Held-for-Sale

6 Months Ended

Jun. 30, 2019

Receivables Held-for-sale [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 $3.3 billion and $3.9 billion at June 30, 2019 and December 31, 2018, respectively. For the three and six months ended June 30, 2019 we had net gain on loan sales associated with LHFS of $75 million and $122 million, respectively, as compared to $63 million and $123 million for the three and six months ended June 30, 2018, respectively.

At June 30, 2019 and December 31, 2018, $28 million and $137 million, respectively, of LHFS were recorded at lower of cost or fair value. We elected the fair value option for the remainder of the loans in the portfolio.