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Investments in Securities (Tables)
9 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]  
Investments In Trading Securities [Table Text Block]
The following table displays our investments in trading securities as of September 30, 2014 and December 31, 2013.
 
As of
 
September 30, 2014
 
December 31, 2013
 
(Dollars in millions)
Mortgage-related securities:
 
 
 
 
 
 
 
Fannie Mae
 
$
5,471

 
 
 
$
5,870

 
Freddie Mac
 
1,500

 
 
 
1,839

 
Ginnie Mae
 
323

 
 
 
407

 
Alt-A private-label securities
 
1,135

 
 
 
1,516

 
Subprime private-label securities
 
1,316

 
 
 
1,448

 
CMBS
 
2,550

 
 
 
2,718

 
Mortgage revenue bonds
 
693

 
 
 
565

 
Other mortgage-related securities
 
99

 
 
 
99

 
Total mortgage-related securities
 
13,087

 
 
 
14,462

 
U.S. Treasury securities
 
17,757

 
 
 
16,306

 
Total trading securities
 
$
30,844

 
 
 
$
30,768

 
Schedule of Trading Securities Gains (Losses), Net [Table Text Block]
The following table displays information about our net trading gains and losses for the three and nine months ended September 30, 2014 and 2013.
 
For the Three
 
For the Nine
 
Months Ended
 
Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
(Dollars in millions)
Net trading gains (losses)
$
50

 
$
(57
)
 
$
444

 
$
111

Net trading gains (losses) recognized in the period related to securities still held at period end
56

 
(56
)
 
409

 
155

Schedule of Realized Gain (Loss) [Table Text Block]
The following table displays the gross realized gains, losses and proceeds on sales of AFS securities for the three and nine months ended September 30, 2014 and 2013.
 
For the Three
 
For the Nine
 
Months Ended
 
Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
(Dollars in millions)

Gross realized gains
$
96

 
$
1,338

 
$
495

 
$
1,520

Gross realized losses
(4
)
 
(884
)
 
(5
)
 
(941
)
Total proceeds(1)
722

 
12,243

 
2,461

 
14,013

__________
s
(1) 
Excludes proceeds from the initial sale of securities from new portfolio securitizations included in “Note 2, Consolidations and Transfers of Financial Assets.”
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]
The following tables display the amortized cost, gross unrealized gains and losses, and fair value by major security type for AFS securities we held as of September 30, 2014 and December 31, 2013.
 
As of September 30, 2014
 
Total Amortized Cost(1)
 
Gross Unrealized Gains
 
Gross Unrealized Losses - OTTI(2)
 
Gross Unrealized Losses - Other(3)
 
Total Fair Value
 
(Dollars in millions)
Fannie Mae
 
$
5,443

 
 
 
$
343

 
 
 
$

 
 
 
$
(30
)
 
 
$
5,756

Freddie Mac
 
5,365

 
 
 
447

 
 
 

 
 
 

 
 
5,812

Ginnie Mae
 
436

 
 
 
62

 
 
 

 
 
 

 
 
498

Alt-A private-label securities
 
5,071

 
 
 
1,115

 
 
 
(17
)
 
 
 

 
 
6,169

Subprime private-label securities
 
4,280

 
 
 
1,131

 
 
 
(9
)
 
 
 
(16
)
 
 
5,386

CMBS
 
1,401

 
 
 
66

 
 
 

 
 
 

 
 
1,467

Mortgage revenue bonds
 
4,174

 
 
 
117

 
 
 
(18
)
 
 
 
(7
)
 
 
4,266

Other mortgage-related securities
 
2,709

 
 
 
194

 
 
 
(25
)
 
 
 
(133
)
 
 
2,745

Total
 
$
28,879

 
 
 
$
3,475

 
 
 
$
(69
)
 
 
 
$
(186
)
 
 
$
32,099


 
As of December 31, 2013
 
Total Amortized Cost(1)
 
Gross Unrealized Gains
 
Gross Unrealized Losses - OTTI(2)
 
Gross Unrealized Losses - Other(3)
 
Total Fair Value
 
(Dollars in millions)
Fannie Mae
 
$
6,227

 
 
 
$
390

 
 
 
$

 
 
 
$
(44
)
 
 
$
6,573

Freddie Mac
 
6,365

 
 
 
477

 
 
 

 
 
 

 
 
6,842

Ginnie Mae
 
512

 
 
 
76

 
 
 

 
 
 

 
 
588

Alt-A private-label securities
 
6,240

 
 
 
1,151

 
 
 
(40
)
 
 
 
(2
)
 
 
7,349

Subprime private-label securities
 
6,232

 
 
 
991

 
 
 
(102
)
 
 
 
(53
)
 
 
7,068

CMBS
 
1,526

 
 
 
80

 
 
 

 
 
 

 
 
1,606

Mortgage revenue bonds
 
5,645

 
 
 
35

 
 
 
(228
)
 
 
 
(196
)
 
 
5,256

Other mortgage-related securities
 
2,943

 
 
 
164

 
 
 
(15
)
 
 
 
(203
)
 
 
2,889

Total
 
$
35,690

 
 
 
$
3,364

 
 
 
$
(385
)
 
 
 
$
(498
)
 
 
$
38,171

__________
(1) 
Amortized cost consists of unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments as well as net other-than-temporary impairments (“OTTI”) recognized in our condensed consolidated statements of operations and comprehensive income.
(2) 
Represents the noncredit component of other-than-temporary impairments losses recorded in “Accumulated other comprehensive income” in our condensed consolidated balance sheets, as well as cumulative changes in fair value of securities for which we previously recognized the credit component of other-than-temporary impairments.
(3) 
Represents the gross unrealized losses on securities for which we have not recognized other-than-temporary impairments.
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]
The following tables display additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position that we held as of September 30, 2014 and December 31, 2013.
 
As of September 30, 2014
 
Less Than 12 Consecutive Months
 
12 Consecutive Months or Longer
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
(Dollars in millions)
Fannie Mae
 
$
(5
)
 
 
$
335

 
 
$
(25
)
 
 
$
624

Alt-A private-label securities
 
(3
)
 
 
90

 
 
(14
)
 
 
113

Subprime private-label securities
 

 
 

 
 
(25
)
 
 
485

Mortgage revenue bonds
 
(3
)
 
 
106

 
 
(22
)
 
 
543

Other mortgage-related securities
 

 
 

 
 
(158
)
 
 
1,033

Total
 
$
(11
)
 
 
$
531

 
 
$
(244
)
 
 
$
2,798

 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013
 
Less Than 12 Consecutive Months
 
12 Consecutive Months or Longer
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
(Dollars in millions)
Fannie Mae
 
$
(40
)
 
 
$
975

 
 
$
(4
)
 
 
$
126

Alt-A private-label securities
 
(12
)
 
 
490

 
 
(30
)
 
 
308

Subprime private-label securities
 
(24
)
 
 
448

 
 
(131
)
 
 
1,332

Mortgage revenue bonds
 
(147
)
 
 
1,662

 
 
(277
)
 
 
970

Other mortgage-related securities
 

 
 
5

 
 
(218
)
 
 
1,066

Total
 
$
(223
)
 
 
$
3,580

 
 
$
(660
)
 
 
$
3,802

Schedule of Modeled Attributes Used to Determine Potential Cash Shortfalls [Table Text Block]
The following table displays the modeled attributes, including default rates and severities, which were used to determine as of September 30, 2014 whether our senior interests in certain non-agency mortgage-related securities (including those we intend to sell) will experience a cash shortfall. An estimate of voluntary prepayment rates is also an input to the present value of expected losses.
 
As of September 30, 2014
 
 
 
Alt-A
 
Subprime
 
Option ARM
 
Fixed Rate
 
Variable Rate
 
Hybrid Rate
 
(Dollars in millions)
 
Vintage Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2004 & Prior:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance
$
114

 
 
$
113

 
 
 
$
879

 
 
 
$
126

 
 
 
$
316

 
Weighted average collateral default(1)
26.5
%
 
 
23.9
%
 
 
 
9.5
%
 
 
 
21.4
%
 
 
 
14.1
%
 
Weighted average collateral severities(2)
55.2

 
 
54.7

 
 
 
52.8

 
 
 
40.5

 
 
 
38.5

 
Weighted average voluntary prepayment rates(3)
9.5

 
 
9.8

 
 
 
13.1

 
 
 
9.6

 
 
 
10.2

 
Average credit enhancement(4)
38.2

 
 
3.9

 
 
 
11.0

 
 
 
22.4

 
 
 
9.4

 
2005:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance
$
10

 
 
$
460

 
 
 
$
797

 
 
 
$
285

 
 
 
$
1,272

 
Weighted average collateral default(1)
49.2
%
 
 
31.2
%
 
 
 
22.4
%
 
 
 
33.4
%
 
 
 
26.4
%
 
Weighted average collateral severities(2)
63.3

 
 
53.1

 
 
 
53.9

 
 
 
48.2

 
 
 
44.0

 
Weighted average voluntary prepayment rates(3)
4.1

 
 
7.7

 
 
 
10.3

 
 
 
8.4

 
 
 
9.0

 
Average credit enhancement(4)
58.8

 
 
8.1

 
 
 
0.7

 
 
 
12.8

 
 
 
2.8

 
2006:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance
$
6,973

 
 
$
631

 
 
 
$
384

 
 
 
$
895

 
 
 
$
1,074

 
Weighted average collateral default(1)
53.2
%
 
 
41.8
%
 
 
 
24.4
%
 
 
 
35.5
%
 
 
 
17.0
%
 
Weighted average collateral severities(2)
61.0

 
 
47.1

 
 
 
55.6

 
 
 
46.5

 
 
 
44.4

 
Weighted average voluntary prepayment rates(3)
2.4

 
 
6.2

 
 
 
8.2

 
 
 
7.7

 
 
 
10.2

 
Average credit enhancement(4)
9.9

 
 
2.2

 
 
 
0.1

 
 
 
0.9

 
 
 

 
2007 & After:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance
$
334

 
 
$

 
 
 
$

 
 
 
$

 
 
 
$
80

 
Weighted average collateral default(1)
50.3
%
 
 
N/A

 
 
 
N/A

 
 
 
N/A

 
 
 
22.1
%
 
Weighted average collateral severities(2)
27.5

 
 
N/A

 
 
 
N/A

 
 
 
N/A

 
 
 
39.6

 
Weighted average voluntary prepayment rates(3)
1.4

 
 
N/A

 
 
 
N/A

 
 
 
N/A

 
 
 
9.6

 
Average credit enhancement(4)
19.9

 
 
N/A

 
 
 
N/A

 
 
 
N/A

 
 
 
20.5

 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance
$
7,431

 
 
$
1,204

 
 
 
$
2,060

 
 
 
$
1,306

 
 
 
$
2,742

 
Weighted average collateral default(1)
52.7
%
 
 
36.1
%
 
 
 
17.3
%
 
 
 
33.7
%
 
 
 
21.2
%
 
Weighted average collateral severities(2)
59.5

 
 
49.6

 
 
 
54.1

 
 
 
46.5

 
 
 
43.6

 
Weighted average voluntary prepayment rates(3)
2.5

 
 
7.1

 
 
 
11.1

 
 
 
8.1

 
 
 
9.6

 
Average credit enhancement(4)
10.9

 
 
4.7

 
 
 
5.0

 
 
 
5.6

 
 
 
3.0

 
__________

(1) 
The expected remaining cumulative default rate of the collateral pool backing the securities, as a percentage of the current collateral unpaid principal balance, weighted by security unpaid principal balance.
(2) 
The expected remaining loss given default of the collateral pool backing the securities, calculated as the ratio of remaining cumulative loss divided by cumulative defaults, weighted by security unpaid principal balance.
(3) 
The average monthly voluntary prepayment rate, weighted by security unpaid principal balance.
(4) 
The average percent current credit enhancement provided by subordination of other securities. Excludes excess interest projections and monoline bond insurance.
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]
The following table displays activity related to the unrealized credit loss component on debt securities held by us and recognized in our condensed consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2014 and 2013.
 
For the Three Months Ended
 
For the Nine Months Ended
  
September 30,
 
September 30,
  
2014
 
2013
 
2014
 
2013
 
(Dollars in millions)
Balance, beginning of period
$
5,871

 
$
8,964

 
$
7,904

 
$
9,214

Additions for the credit component on debt securities for which OTTI was not previously recognized

 

 
1

 
7

Additions for the credit component on debt securities for which OTTI was previously recognized
3

 
1

 
50

 
9

Reductions for securities no longer in portfolio at period end
(355
)
 
(457
)
 
(792
)
 
(540
)
Reductions for securities which we intend to sell or it is more likely than not that we will be required to sell before recovery of amortized cost basis

 
(193
)
 
(1,453
)
 
(193
)
Reductions for amortization resulting from changes in cash flows expected to be collected over the remaining life of the securities
(73
)
 
(92
)
 
(264
)
 
(274
)
Balance, end of period
$
5,446

 
$
8,223

 
$
5,446

 
$
8,223

Investments Classified by Contractual Maturity Date [Table Text Block]
The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments, as of September 30, 2014. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time.
  
As of September 30, 2014
 
Total Amortized Cost
 
Total
Fair
Value
 
One Year or Less
 
After One Year Through Five Years
 
After Five Years Through Ten Years
 
After Ten Years
 
 
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
  
(Dollars in millions)
Fannie Mae
 
$
5,443

 
 
$
5,756

 
 
$

 
 
$

 
 
$
285

 
 
$
300

 
 
$
271

 
 
$
292

 
 
$
4,887

 
 
$
5,164

Freddie Mac
 
5,365

 
 
5,812

 
 

 
 

 
 
309

 
 
327

 
 
523

 
 
571

 
 
4,533

 
 
4,914

Ginnie Mae
 
436

 
 
498

 
 

 
 

 
 

 
 

 
 
65

 
 
74

 
 
371

 
 
424

Alt-A private-label securities
 
5,071

 
 
6,169

 
 

 
 

 
 

 
 

 
 

 
 

 
 
5,071

 
 
6,169

Subprime private-label securities
 
4,280

 
 
5,386

 
 

 
 

 
 

 
 

 
 

 
 

 
 
4,280

 
 
5,386

CMBS
 
1,401

 
 
1,467

 
 

 
 

 
 
1,321

 
 
1,385

 
 

 
 

 
 
80

 
 
82

Mortgage revenue bonds
 
4,174

 
 
4,266

 
 
24

 
 
24

 
 
198

 
 
202

 
 
380

 
 
383

 
 
3,572

 
 
3,657

Other mortgage-related securities
 
2,709

 
 
2,745

 
 

 
 

 
 

 
 
3

 
 
38

 
 
40

 
 
2,671

 
 
2,702

Total
 
$
28,879

 
 
$
32,099

 
 
$
24

 
 
$
24

 
 
$
2,113

 
 
$
2,217

 
 
$
1,277

 
 
$
1,360

 
 
$
25,465

 
 
$
28,498