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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities by Credit Rating [Table Text Block]
As of December 31, 2018 and 2017, our investments in CRT and non-Agency securities had the following credit ratings:
 
 
December 31, 2018
 
December 31, 2017
CRT and Non-Agency Security Credit Ratings 1
 
CRT
 
RMBS
 
CMBS
 
CRT
 
RMBS
 
CMBS
AAA
 
$
—

 
$
160

 
$
52

 
$
—

 
$
7

 
$
—

AA
 
—

 
17

 
152

 
—

 
—

 
—

A
 
17

 
33

 
15

 
1

 
—

 
—

BBB
 
25

 
43

 
53

 
34

 
—

 
29

BB
 
492

 
8

 
10

 
370

 
—

 
—

B
 
453

 
2

 
—

 
455

 
—

 
—

Not Rated
 
25

 
3

 
—

 
16

 
—

 
—

Total
 
$
1,012

 
$
266

 
$
282

 
$
876

 
$
7

 
$
29

 ________________________________
1.
Represents the lowest of Standard and Poor's ("S&P"), Moody's, Fitch, DBRS, Kroll Bond Rating Agency ("KBRA") and Morningstar credit ratings, stated in terms of the S&P equivalent rating as of each date.
Available-for-sale Securities [Table Text Block]
 
 
December 31, 2018
 
 
Agency RMBS
 
Non-Agency
 
 
 
 
Investment Securities
 
Fannie Mae
 
Freddie Mac
 
Ginnie
Mae
 
RMBS
 
CMBS
 
CRT
 
Total
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
$
17,591

 
$
5,673

 
$
25

 
$
6

 
$
—

 
$
—

 
$
23,295

Unamortized discount
 
(10
)
 
(2
)
 
—

 
—

 
—

 
—

 
(12
)
Unamortized premium
 
912

 
343

 
—

 
—

 
—

 
—

 
1,255

Amortized cost
 
18,493

 
6,014

 
25

 
6

 
—

 
—

 
24,538

Gross unrealized gains
 
4

 
2

 
1

 
—

 
—

 
—

 
7

Gross unrealized losses
 
(686
)
 
(264
)
 
—

 
—

 
—

 
—

 
(950
)
Total available-for-sale securities, at fair value
 
17,811

 
5,752

 
26

 
6

 
—

 
—

 
23,595

Securities remeasured at fair value through earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
39,453

 
18,428

 
—

 
268

 
281

 
968

 
59,398

Unamortized discount
 
(78
)
 
(9
)
 
—

 
(10
)
 
(6
)
 
—

 
(103
)
Unamortized premium
 
1,055

 
638

 
—

 
—

 
5

 
38

 
1,736

Amortized cost
 
40,430

 
19,057

 
—

 
258

 
280

 
1,006

 
61,031

Gross unrealized gains
 
223

 
57

 
—

 
2

 
3

 
18

 
303

Gross unrealized losses
 
(386
)
 
(243
)
 
—

 
—

 
(1
)
 
(12
)
 
(642
)
Total securities remeasured at fair value through earnings
 
40,267

 
18,871

 
—

 
260

 
282

 
1,012

 
60,692

Total securities, at fair value
 
$
58,078

 
$
24,623

 
$
26

 
$
266

 
$
282

 
$
1,012

 
$
84,287

Weighted average coupon as of December 31, 2018
 
3.82
%
 
3.87
%
 
3.37
%
 
3.83
%
 
4.58
%
 
5.86
%
 
3.86
%
Weighted average yield as of December 31, 2018 1
 
3.28
%
 
3.28
%
 
2.04
%
 
4.22
%
 
4.68
%
 
5.16
%
 
3.31
%

 ________________________________
1.
Incorporates a weighted average future constant prepayment rate assumption of 7.9% based on forward rates as of December 31, 2018.

 
 
December 31, 2017
 
 
Agency RMBS
 
Non-Agency
 
 
 
 
Investment Securities
 
Fannie 
Mae
 
Freddie Mac
 
Ginnie 
Mae
 
RMBS
 
CMBS
 
CRT
 
Total
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
$
24,200

 
$
8,219

 
$
34

 
$
7

 
$
—

 
$
—

 
$
32,460

Unamortized discount
 
(25
)
 
(3
)
 
—

 
—

 
—

 
—

 
(28
)
Unamortized premium
 
1,119

 
447

 
—

 
—

 
—

 
—

 
1,566

Amortized cost
 
25,294

 
8,663

 
34

 
7

 
—

 
—

 
33,998

Gross unrealized gains
 
98

 
22

 
1

 
—

 
—

 
—

 
121

Gross unrealized losses
 
(325
)
 
(141
)
 
—

 
—

 
—

 
—

 
(466
)
Total available-for-sale securities, at fair value
 
25,067

 
8,544

 
35

 
7

 
—

 
—

 
33,653

Securities remeasured at fair value through earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
13,558

 
7,956

 
—

 
—

 
29

 
801

 
22,344

Unamortized discount
 
(34
)
 
—

 
—

 
—

 
(1
)
 
—

 
(35
)
Unamortized premium
 
711

 
415

 
—

 
—

 
—

 
33

 
1,159

Amortized cost
 
14,235

 
8,371

 
—

 
—

 
28

 
834

 
23,468

Gross unrealized gains
 
26

 
2

 
—

 
—

 
1

 
42

 
71

Gross unrealized losses
 
(70
)
 
(42
)
 
—

 
—

 
—

 
—

 
(112
)
Total securities remeasured at fair value through earnings
 
14,191

 
8,331

 
—

 
—

 
29

 
876

 
23,427

Total securities, at fair value
 
$
39,258

 
$
16,875

 
$
35

 
$
7

 
$
29

 
$
876

 
$
57,080

Weighted average coupon as of December 31, 2017
 
3.67
%
 
3.73
%
 
2.84
%
 
2.50
%
 
6.55
%
 
5.26
%
 
3.71
%
Weighted average yield as of December 31, 2017 1
 
2.84
%
 
2.87
%
 
2.02
%
 
3.08
%
 
7.30
%
 
5.19
%
 
2.89
%

 ________________________________
1.
Incorporates a weighted average future constant prepayment rate assumption of 8.4% based on forward rates as of December 31, 2017.
Components of Investment Securities
The following tables summarize our investment securities as of December 31, 2018 and 2017, excluding TBA securities, (dollars in millions). Details of our TBA securities as of each of the respective dates are included in Note 5.
 
 
December 31, 2018
 
December 31, 2017
Investment Securities
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Agency RMBS:
 
 
 
 
 
 
 
 
Fixed rate
 
$
83,047

 
$
81,753

 
$
55,477

 
$
55,026

Adjustable rate
 
212

 
213

 
278

 
283

CMO
 
588

 
583

 
629

 
631

Interest-only and principal-only strips
 
172

 
178

 
213

 
228

Total Agency RMBS
 
84,019

 
82,727

 
56,597

 
56,168

Non-Agency RMBS
 
264

 
266

 
7

 
7

CMBS
 
280

 
282

 
28

 
29

CRT securities
 
1,006

 
1,012

 
834

 
876

Total investment securities
 
$
85,569

 
$
84,287

 
$
57,466

 
$
57,080


 
 
December 31, 2018
 
 
Agency RMBS
 
Non-Agency
 
 
 
 
Investment Securities
 
Fannie Mae
 
Freddie Mac
 
Ginnie
Mae
 
RMBS
 
CMBS
 
CRT
 
Total
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
$
17,591

 
$
5,673

 
$
25

 
$
6

 
$
—

 
$
—

 
$
23,295

Unamortized discount
 
(10
)
 
(2
)
 
—

 
—

 
—

 
—

 
(12
)
Unamortized premium
 
912

 
343

 
—

 
—

 
—

 
—

 
1,255

Amortized cost
 
18,493

 
6,014

 
25

 
6

 
—

 
—

 
24,538

Gross unrealized gains
 
4

 
2

 
1

 
—

 
—

 
—

 
7

Gross unrealized losses
 
(686
)
 
(264
)
 
—

 
—

 
—

 
—

 
(950
)
Total available-for-sale securities, at fair value
 
17,811

 
5,752

 
26

 
6

 
—

 
—

 
23,595

Securities remeasured at fair value through earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value
 
39,453

 
18,428

 
—

 
268

 
281

 
968

 
59,398

Unamortized discount
 
(78
)
 
(9
)
 
—

 
(10
)
 
(6
)
 
—

 
(103
)
Unamortized premium
 
1,055

 
638

 
—

 
—

 
5

 
38

 
1,736

Amortized cost
 
40,430

 
19,057

 
—

 
258

 
280

 
1,006

 
61,031

Gross unrealized gains
 
223

 
57

 
—

 
2

 
3

 
18

 
303

Gross unrealized losses
 
(386
)
 
(243
)
 
—

 
—

 
(1
)
 
(12
)
 
(642
)
Total securities remeasured at fair value through earnings
 
40,267

 
18,871

 
—

 
260

 
282

 
1,012

 
60,692

Total securities, at fair value
 
$
58,078

 
$
24,623

 
$
26

 
$
266

 
$
282

 
$
1,012

 
$
84,287

Weighted average coupon as of December 31, 2018
 
3.82
%
 
3.87
%
 
3.37
%
 
3.83
%
 
4.58
%
 
5.86
%
 
3.86
%
Weighted average yield as of December 31, 2018 1
 
3.28
%
 
3.28
%
 
2.04
%
 
4.22
%
 
4.68
%
 
5.16
%
 
3.31
%
Summary Of Agency Securities Estimated Weighted Average Life Classifications
The following table summarizes our investments as of December 31, 2018 and 2017 according to their estimated weighted average life classification (dollars in millions):

 
 
December 31, 2018
 
December 31, 2017
Estimated Weighted Average Life of Investment Securities
 
Fair Value
 
Amortized
Cost
 
Weighted
Average
Coupon
 
Weighted
Average
Yield
 
Fair Value
 
Amortized
Cost
 
Weighted
Average
Coupon
 
Weighted
Average
Yield
≥ 1 year and ≤ 3 years
 
$
1,690

 
$
1,716

 
3.99%
 
2.64%
 
$
2,712

 
$
2,693

 
3.90%
 
2.67%
> 3 years and ≤ 5 years
 
5,518

 
5,586

 
3.35%
 
2.73%
 
7,499

 
7,518

 
3.31%
 
2.39%
> 5 years and ≤10 years
 
72,503

 
73,588

 
3.92%
 
3.37%
 
45,977

 
46,398

 
3.75%
 
2.95%
> 10 years
 
4,576

 
4,679

 
3.57%
 
3.30%
 
892

 
857

 
4.87%
 
4.74%
Total
 
$
84,287

 
$
85,569

 
3.86%
 
3.31%
 
$
57,080

 
$
57,466

 
3.71%
 
2.89%
Summary of Continuous Unrealized Loss Position of Available for Sale Securities
The following table presents the gross unrealized loss and fair values of securities classified as available-for-sale by length of time that such securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017 (in millions):
 
 
Unrealized Loss Position For
 
 
Less than 12 Months
 
12 Months or More
 
Total
Securities Classified as Available-for-Sale
 
Fair
Value
 
Unrealized
Loss
 

Fair Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
December 31, 2018
 
$
4,783

 
$
(72
)
 
$
18,231

 
$
(878
)
 
$
23,014

 
$
(950
)
December 31, 2017
 
$
3,582

 
$
(15
)
 
$
20,577

 
$
(451
)
 
$
24,159

 
$
(466
)
Summary of Net Gain from Sale of Agency Securities
The following table is a summary of our net gain (loss) from the sale of investment securities for fiscal years 2018, 2017 and 2016 by investment classification of accounting (in millions):
 
 
Fiscal Year 2018
 
Fiscal Year 2017
 
Fiscal Year 2016
Investment Securities
 
Available-for-Sale
Securities 2
Fair Value Option Securities
Total
 
Available-for-Sale
Securities 2
Fair Value Option Securities
Total
 
Available-for-Sale
Securities 2
Fair Value Option Securities
Total
Investment securities sold, at cost
 
$
(4,306
)
$
(5,344
)
$
(9,650
)
 
$
(6,324
)
$
(12,913
)
$
(19,237
)
 
$
(17,907
)
$
—

$
(17,907
)
Proceeds from investment securities sold 1
 
4,227

5,286

9,513

 
6,241

12,933

19,174

 
18,016

—

18,016

Net gain (loss) on sale of investment securities
 
$
(79
)
$
(58
)
$
(137
)
 
$
(83
)
$
20

$
(63
)
 
$
109

$
—

$
109

 
 
 
 
 
 
 
 
 
 
 
 
 
Gross gain on sale of investment securities
 
$
6

$
16

$
22

 
$
16

$
48

$
64

 
$
123

$
—

$
123

Gross loss on sale of investment securities
 
(85
)
(74
)
(159
)
 
(99
)
(28
)
(127
)
 
(14
)
—

(14
)
Net gain (loss) on sale of investment securities
 
$
(79
)
$
(58
)
$
(137
)
 
$
(83
)
$
20

$
(63
)
 
$
109

$
—

$
109

  ________________________________
1.
Proceeds include cash received during the period, plus receivable for investment securities sold during the period as of period end.
2.
See Note 9 for a summary of changes in accumulated OCI.