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Loans Held-for-Investment (Tables)
 9 Months Ended
Sep. 30, 2021
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 LHFI:
September 30, 2021December 31, 2020
 (Dollars in millions)
Consumer loans
Residential first mortgage$1,626 $2,266 
Home equity657 856 
Other1,203 1,004 
Total consumer loans3,486 4,126 
Commercial loans
Commercial real estate3,216 3,061 
Commercial and industrial1,387 1,382 
Warehouse lending6,179 7,658 
Total commercial loans10,782 12,101 
Total loans held-for-investment$14,268 $16,227 
    
    The following table presents the UPB of our loan sales and purchases in the LHFI portfolio:
Nine Months Ended September 30,
20212020
 (Dollars in millions)
Loans Sold (1)
Performing loans$92 $436 
Total loans sold$92 $436 
Net gain associated with loan sales (2)$3 
Loans Purchased
Home equity$— $— 
Other consumer— 63 
Total loans purchased$— $63 
(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 ALLL, 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 September 30, 2021
Beginning balance$48 $17 $38 $58 $38 $3 $202 
(Benefit) provision(5)(3)(5)(23)11 — (25)
Charge-offs(1)— (1)— (6)— (8)
Recoveries1 1 — — — — 2 
Ending allowance balance$43 $15 $32 $35 $43 $3 $171 
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 
Nine Months Ended September 30, 2021
Beginning balance$49 $25 $39 $84 $51 $4 $252 
(Benefit) provision (4)(10)(6)(49)(17)(1)$(87)
Charge-offs(4)(1)(3)— (7)— $(15)
Recoveries2 1 2 — 16 — $21 
Ending allowance balance$43 $15 $32 $35 $43 $3 $171 
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 32625 12 10 (14)(6)(4)$23 
Provision10 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 
(1)Includes LGG.
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) (5)
 (Dollars in millions)
September 30, 2021
Consumer loans
Residential first mortgage$6 $1 $47 $54 $1,572 $1,626 
Home equity3 — 8 11 646 657 
Other3 1 3 7 1,196 1,203 
Total consumer loans12 2 58 72 3,414 3,486 
Commercial loans
Commercial real estate— — — — 3,216 3,216 
Commercial and industrial— — 35 35 1,352 1,387 
Warehouse lending— — — — 6,179 6,179 
Total commercial loans— — 35 35 10,747 10,782 
Total loans (2)$12 $2 $93 $107 $14,161 $14,268 
December 31, 2020
Consumer loans
Residential first mortgage$4 $4 $31 $39 $2,227 $2,266 
Home equity1 1 5 7 849 856 
Other4 1 2 7 997 1,004 
Total consumer loans9 6 38 53 4,073 4,126 
Commercial loans
Commercial real estate20 — 3 23 3,038 3,061 
Commercial and industrial1 — 15 16 1,366 1,382 
Warehouse lending— — — — 7,658 7,658 
Total commercial loans21 — 18 39 12,062 12,101 
Total loans (2)$30 $6 $56 $92 $16,135 $16,227 
(1)Includes less than 90 days past due performing loans which are deemed nonaccrual. Interest is not being accrued on these loans.
(2)Includes $9 million and $8 million of past due loans accounted for under the fair value option as of September 30, 2021 and December 31, 2020, respectively.
(3)Collateral dependent loans totaled $120 million and $80 million at September 30, 2021 and December 31, 2020, respectively. The majority of these loans are secured by real estate.
(4)The interest income recognized on impaired loans was less than a million and $2 million for the three months ended September 30, 2021 and December 31, 2020, respectively.
(5)The delinquency status for loans in forbearance is frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends.
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)
September 30, 2021
Consumer loans
Residential first mortgage$25 $9 $34 
Home equity9 3 12 
Total consumer TDR loans34 12 46 
Commercial loans
Commercial real estate— — — 
Commercial and industrial$— $2 2 
Total TDRs (1)(2)$34 $14 $48 
December 31, 2020
Consumer loans
Residential first mortgage$19 $8 $27 
Home equity12 2 14 
Total consumer TDR loans31 10 41 
Commercial loans
Commercial real estate5 — 5 
Total TDRs (1)(2)$36 $10 $46 
(1)ALLL on TDR loans totaled $4 million and $5 million at September 30, 2021 and December 31, 2020.
(2)Includes $1 million and $3 million of TDR loans accounted for under the fair value option at September 30, 2021 and December 31, 2020.
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 September 30, 2021
Residential first mortgages21 $8 $8 
Home equity(2)(3)1 $— $— 
Commercial Real Estate— $— $— 
Total TDR loans22 $8 $8 
Three Months Ended September 30, 2020
Residential first mortgages1 $— $— 
Home equity(2)(3)1 — — 
Consumer1 $— $— 
Total TDR loans3 $— $— 
Nine Months Ended September 30, 2021
Residential first mortgages32 $14 $14 
Home equity(2)(3)2 $— $— 
Consumer— $— $— 
Commercial Real Estate1 $2 $2 
Total TDR loans35 $16 $16 
Nine Months Ended September 30, 2020
Residential first mortgages6 $1 $1 
Home equity(2)(3)3 $— $— 
Consumer2 $— $— 
Commercial Real Estate1 $5 $5 
Total TDR loans12 $6 $6 
(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 BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotalDecember 31, 2020
 Term Loans
Amortized Cost Basis by Closing Year
As of September 30, 202120212020201920182017Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
Pass $272 $218 $291 $123 $147 $419 $82 $15 $1,567 $2,205 
Watch — — — — 1 2 — — 3 21 
Substandard— 1 7 7 2 23 — 1 41 25 
Home Equity
Pass3 5 18 7 4 15 544 52 648 838 
Watch— — — — — — — — — 13 
Substandard— — — — — 2 2 3 7 3 
Other Consumer
Pass 326 244 246 111 2 4 261 6 1,200 1,000 
Watch — — 1 — — — — — 1 1 
Substandard— 1 1 1 — — — — 3 3 
Total Consumer Loans (1)(2)$601 $469 $564 $249 $156 $465 $889 $77 $3,470 $4,109 
(1)Excludes loans carried under the fair value option.
(2)The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends.
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotalDecember 31, 2019
 Term Loans
Amortized Cost Basis by Closing Year
As of December 31, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
Pass $362 $544 $231 $289 $252 $420 $92 $15 $2,205 $3,107 
Watch — 1 1 1 — 17 1 — 21 23 
Substandard— 3 5 2 — 15 — — 25 15 
Home Equity
Pass7 31 13 6 2 11 720 48 838 1,002 
Watch— — — — — 11 2 — 13 16 
Substandard— — — — — 1 1 1 3 3 
Other Consumer
Pass 292 321 145 3 1 6 227 5 1,000 727 
Watch — — — — — — — 1 1 1 
Substandard1 1 1 — — — — — 3 1 
Total Consumer Loans (1)(2)$662 $901 $396 $301 $255 $481 $1,043 $70 $4,109 $4,895 
(1)Excludes loans carried under the fair value option.
(2)The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends.
    
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 Closing Year
As of September 30, 202120212020201920182017Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
>750$118 $109 $126 $54 $95 $238 $50 $7 $797 
700-75097 60 91 50 45 $132 22 6 503 
<70057 50 81 26 10 $74 10 3 311 
Home Equity
>7501 2 5 2 2 $5 257 15 289 
700-7502 2 7 3 1 $6 218 22 261 
<700— 1 6 2 1 $6 71 18 105 
Other Consumer
>750326 245 248 98 2 $4 250 4 1,177 
700-750— — — 12 — $— 7 — 19 
<700— — — 2 — $— 4 2 8 
Total Consumer Loans (1)$601 $469 $564 $249 $156 $465 $889 $77 $3,470 
(1)Excludes loans carried under the fair value option.

Revolving Loans Converted to Term Loans Amortized Cost Basis
FICO BandRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Closing Year
As of December 31, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
>750$195 $272 $118 $193 $181 $231 $55 $6 $1,251 
700-750119 180 90 85 64 130 25 7 700 
<70048 96 29 14 7 91 13 2 300 
Home Equity
>7502 9 6 2 1 7 324 13 364 
700-7503 12 4 3 1 8 289 20 340 
<7002 10 3 1 — 8 110 16 150 
Other Consumer
>750209 205 80 2 1 5 213 6 721 
700-75079 107 55 1 — 1 9 — 252 
<7005 10 11 — — — 5 — 31 
Total Consumer Loans (1)$662 $901 $396 $301 $255 $481 $1,043 $70 $4,109 
(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 Closing Year
As of September 30, 202120212020201920182017Prior
Consumer Loans(Dollars in millions)
Residential First Mortgage
>90$82 $76 $160 $67 $19 $19 $— $— $423 
71-90104 89 76 32 44 207 — — 552 
55-7056 32 33 14 48 135 — — 318 
<5530 22 29 17 39 83 82 16 318 
Home Equity
>90— — — — 1 7 — — 8 
71-902 3 14 5 2 7 395 37 465 
<=701 2 4 2 1 3 151 18 182 
Total (1)$275 $224 $316 $137 $154 $461 $628 $71 $2,266 
(1)Excludes loans carried under the fair value option.

Revolving Loans Converted to Term Loans Amortized Cost Basis
LTV BandRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Closing Year
As of December 31, 202020202019201820172016Prior
Consumer Loans(Dollars in millions)
Residential first mortgage
>90$84 $260 $123 $35 $3 $19 $— $— $524 
71-90169 180 66 99 72 238 — — 824 
55-7083 60 22 82 96 122 — — 465 
<5526 48 26 76 81 73 93 15 438 
Home Equity
>90— — — 1 1 10 — — 12 
71-905 24 10 4 1 9 548 33 634 
<=702 7 3 1 — 4 175 16 208 
Total (1)$369 $579 $250 $298 $254 $475 $816 $64 $3,105 
(1)Excludes loans carried under the fair value option.
Based on the most recent credit 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 BasisDecember 31, 2020
Term LoansRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Closing Year
As of September 30, 202120212020201920182017Prior
Commercial Loans(Dollars in million)
Commercial real estate
Pass$330 $294 $621 $335 $252 $372 $826 $— $3,030 $2,805 
Watch— 5 8 23 72 52 — — 160 166 
Special mention— — 3 — — — 1 — 4 53 
Substandard— — — — 22 — — — 22 37 
Commercial and industrial
Pass122 87 176 77 96 14 682 — 1,254 1,200 
Watch— 2 11 5 — — 43 — 61 106 
Special mention— — — — — — — — — 24 
Substandard— — 17 19 4 — 32 — 72 52 
Warehouse
Pass6,039 — — — — — — — 6,039 7,398 
Watch140 — — — — — — — 140 260 
Special mention— — — — — — — — — — 
Substandard— — — — — — — — — — 
Total commercial loans$6,631 $388 $836 $459 $446 $438 $1,584 $— $10,782 $12,101 

Revolving Loans Converted to Term Loans Amortized Cost BasisDecember 31, 2019
Term LoansRevolving Loans Amortized Cost BasisTotal
 Amortized Cost Basis by Closing Year
As of December 31, 202020202019201820172016Prior
Commercial Loans(Dollars in million)
Commercial real estate
Pass$347 $993 $439 $438 $308 $280 $— $— $2,805 $2,794 
Watch21 19 35 51 21 19 — — 166 24 
Special mention5 1 16 — 17 14 — — 53 5 
Substandard— 11 1 25 — — — — 37 5 
Commercial and industrial
Pass319 425 163 149 54 71 19 — 1,200 1,533 
Watch3 48 28 25 — 2 — — 106 72 
Special mention1 — 14 9 — — — — 24 24 
Substandard22 11 15 4 — — — — 52 5 
Warehouse
Pass7,398 — — — — — — — 7,398 2,556 
Watch260 — — — — — — — 260 189 
Special mention— — — — — — — — — 15 
Substandard— — — — — — — — — — 
Total commercial loans$8,376 $1,508 $711 $701 $400 $386 $19 $— $12,101 $7,222