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Loans Held-for-Investment (Tables)
 6 Months Ended
Jun. 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:
June 30, 2020December 31, 2019
 (Dollars in millions)
Consumer loans
Residential first mortgage$2,716  $3,154  
Home equity978  1,024  
Other898  729  
Total consumer loans4,592  4,907  
Commercial loans
Commercial real estate3,016  2,828  
Commercial and industrial1,968  1,634  
Warehouse lending5,232  2,760  
Total commercial loans10,216  7,222  
Total loans held-for-investment$14,808  $12,129  
        
        The following table presents the UPB of our loan sales and purchases in the loans held-for-investment portfolio:
Six Months Ended June 30,
20202019
 (Dollars in millions)
Loans Sold (1)
Performing loans$38  $139  
Total loans sold$38  $139  
Net gain associated with loan sales (2)
$—  $2  
Loans Purchased
Home equity$—  $149  
Other consumer63  51  
Total loans purchased$63  $200  
Premium associated with loans purchased$—  $7  
(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
First
Mortgage (1)		Home EquityOther
Consumer		Commercial
Real Estate		Commercial
and Industrial		Warehouse
Lending		Total
 (Dollars in millions)
Three Months Ended June 30, 2020
Beginning balance$46  $23  $16  $28  $18  $1  $132  
Provision 16  5  19  55  5  —  100  
Charge-offs(2) (1) (2) —  —  —  (5) 
Recoveries—  1  1  —  —  —  2  
Ending allowance balance$60  $28  $34  $83  $23  $1  $229  
Three Months Ended June 30, 2019
Beginning balance$35  $16  $4  $36  $30  $6  $127  
Provision (benefit)(8) —  3  (1) 24  (1) 17  
Charge-offs(1) —  (3) —  (31) —  (35) 
Recoveries—  —  1  —  —  —  1  
Ending allowance balance$26  $16  $5  $35  $23  $5  $110  
Six Months Ended June 30, 2020
Beginning balance, prior to adoption of ASC 326$22  $14  $6  $38  $22  $5  $107  
Impact of adopting ASC 32625  12  10  (14) (6) (4) 23  
Provision16  2  20  59  7  —  104  
Charge-offs(3) (2) (3) —  —  —  (8) 
Recoveries—  2  1  —  —  —  3  
Ending allowance balance$60  $28  $34  $83  $23  $1  $229  
Six Months Ended June 30, 2019
Beginning balance$38  $15  $3  $48  $18  $6  $128  
Provision (benefit)(10) —  5  (13) 36  (1) 17  
Charge-offs(2) —  (4) —  (31) —  (37) 
Recoveries—  1  1  —  —  —  2  
Ending allowance balance$26  $16  $5  $35  $23  $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
Past Due		60-89 Days
Past Due		90 Days or
Greater Past
Due (1)		Total
Past Due		CurrentTotal LHFI (3) (4)
 (Dollars in millions)
June 30, 2020
Consumer loans
Residential first mortgage$6  $5  $27  $38  $2,678  $2,716  
Home equity1  —  5  6  972  978  
Other2  1  1  4  894  898  
Total consumer loans9  6  33  48  4,544  4,592  
Commercial loans
Commercial real estate—  —  —  —  3,016  3,016  
Commercial and industrial (1)
—  —  —  —  1,968  1,968  
Warehouse lending—  —  —  —  5,232  5,232  
Total commercial loans—  —  —  —  10,216  10,216  
Total loans (2)
$9  $6  $33  $48  $14,760  $14,808  
December 31, 2019
Consumer loans
Residential first mortgage$5  $4  $21  $30  $3,124  $3,154  
Home Equity1  —  4  5  1,019  1,024  
Other3  1  1  5  724  729  
Total consumer loans9  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 $5 million and $4 million of past due loans accounted for under the fair value option as of June 30, 2020 and December 31, 2019, respectively.
(3)Collateral dependent loans totaled $63 million at June 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 $1 million and less than $1 million at June 30, 2020 and December 31, 2019, respectively.
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
 PerformingNonperformingTotal
(Dollars in millions)
June 30, 2020
Consumer loans
Residential first mortgage$20  $8  $28  
Home equity15  2  17  
Commercial Real Estate5  —  5  
Total TDRs (1)(2)
$40  $10  $50  
December 31, 2019
Consumer loans
Residential first mortgage$20  $8  $28  
Home Equity18  2  20  
Total TDRs (1)(2)
$38  $10  $48  
(1)Allowance for loan losses on TDR loans totaled $4 million and $8 million at June 30, 2020 and December 31, 2019, respectively.
(2)Includes $2 million of TDR loans accounted for under the fair value option at June 30, 2020 and December 31, 2019.
The following table provides a summary of newly modified TDRs:
New TDRs
Number of AccountsPre-Modification Unpaid Principal BalancePost-Modification Unpaid Principal Balance (1)
(Dollars in millions)
Three Months Ended June 30, 2020
Commercial Real Estate 1  $5  $5  
Total TDR loans1  $5  $5  
Three Months Ended June 30, 2019
Home equity (2)(3)
2  —  —  
Total TDR loans2  $—  $—  
Six Months Ended June 30, 2020
Residential first mortgages5  $1  $1  
Home equity (2)(3)
2  —  —  
Consumer1  —  —  
Commercial Real Estate 1  $5  $5  
Total TDR loans9  6  6  
Six Months Ended June 30, 2019
Residential first mortgages2  $—  $—  
Home equity (2)(3)
4  1  1  
Total TDR loans6  $1  $1  
(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 Converted to Term Loans Amortized Cost Basis
Revolving Loans Amortized Cost BasisTotalDecember 31, 2019
 Term Loans
Amortized Cost Basis by Origination Year
As of June 30, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
Pass $152  $709  $325  $418  $367  $568  $105  $11  $2,655  $3,107  
Watch —  1  2  1  1  19  1  —  25  23  
Substandard—  1  6  2  —  13  —  —  22  15  
Home Equity
Pass6  42  19  9  3  15  827  38  959  1,002  
Watch—  —  —  —  —  13  1  —  14  16  
Substandard—  —  —  —  —  1  1  1  3  3  
Other Consumer
Pass 126  368  183  4  2  11  202  —  896  727  
Watch —  —  1  —  —  —  —  —  1  1  
Substandard—  —  1  —  —  —  —  —  1  1  
Total Consumer Loans (1)$284  $1,121  $537  $434  $373  $640  $1,137  $50  $4,576  $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 BandRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Origination Year
As of June 30, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
>750$87  $372  $172  $293  $278  $333  $61  $4  $1,600  
700-75045  234  128  112  83  165  31  4  802  
<70020  105  33  16  7  102  14  3  300  
Home Equity
>7502  13  6  3  1  9  366  12  412  
700-7502  16  7  4  1  11  331  16  388  
<7002  13  6  2  1  9  132  11  176  
Other Consumer
>75086  235  99  2  1  9  109  —  541  
700-75036  121  68  1  —  1  65  —  292  
<7004  12  18  1  1  1  28  —  65  
Total Consumer Loans (1)$284  $1,121  $537  $434  $373  $640  $1,137  $50  $4,576  
(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 BandRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Origination Year
As of June 30, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential first mortgage
>90$45  $303  $167  $45  $3  $23  $—  $—  $586  
71-9068  243  96  141  96  298  —  —  942  
55-7027  95  33  119  139  167  —  —  580  
<5512  70  37  116  130  112  106  11  594  
Home Equity
>90—  —  —  1  2  14  1  —  18  
71-904  32  14  6  1  11  648  25  741  
<=702  10  5  2  —  4  180  14  217  
Total (1)$158  $753  $352  $430  $371  $629  $935  $50  $3,678  
(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:
Revolving Loans Converted to Term Loans Amortized Cost Basis
Term LoansRevolving Loans Amortized Cost BasisTotalDecember 31, 2019
 Amortized Cost Basis by Origination Year
As of June 30, 202020202019201820172016Prior
Commercial Loans(Dollars in million)
Commercial real estate
Pass$184  $950  $477  $486  $353  $286  $(1) $—  $2,735  $2,794  
Watch23  32  88  33  38  36  —  —  250  24  
Special mention—  —  3  20  —  —  —  —  23  5  
Substandard—  —  3  5  —  —  —  —  8  5  
Commercial and industrial
Pass119  580  248  317  113  110  22  —  1,509  1,533  
Watch1  2  10  —  —  —  1  —  14  72  
Special mention1  12  4  14  —  6  —  —  37  24  
Substandard21  —  10  4  —  —  —  —  35  5  
Payroll protection program
Pass373  —  —  —  —  —  —  —  373  —  
Warehouse
Pass—  —  —  —  —  —  4,942  —  4,942  2,556  
Watch—  —  —  —  —  —  255  —  255  189  
Special mention—  —  —  —  —  —  35  —  35  15  
Substandard—  —  —  —  —  —  —  —  —  —  
Total commercial loans$722  $1,576  $843  $879  $504  $438  $5,254  $—  $10,216  $7,222