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Investments in Securities (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019			December 31, 2018
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae⁽¹⁾		$	3,661		$	1,467
Other agency⁽²⁾		3,704			3,503
Private-label and other mortgage securities		741			1,306
Total mortgage-related securities (includes $922 and $32, respectively, related to consolidated trusts)		8,106			6,276
Non-mortgage-related securities:
U.S. Treasury securities		36,016			35,502
Other securities		84			89
Total non-mortgage-related securities		36,100			35,591
Total trading securities		$	44,206		$	41,867


⁽¹⁾	In the second quarter of 2019, we implemented the Single Security Initiative and recognized $1.4 billion in mortgage-related securities that had previously been consolidated.

⁽²⁾

Consists of Freddie Mac and Ginnie Mae mortgage-related securities.

Schedule of Trading Securities Gains (Losses), Net [Table Text Block]

The following table displays information about our net trading gains (losses).



	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2019		2018			2019		2018
	(Dollars in millions)
Net trading gains (losses)	$	95	$	(40	)	$	370	$	79
Net trading gains (losses) recognized in the period related to securities still held at period end	82		(27		)	298		20

Schedule of Realized Gain (Loss) [Table Text Block]

The following table displays the gross realized gains and proceeds on sales of AFS securities.



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
	(Dollars in millions)
Gross realized gains	$	—	$	12	$	171	$	375
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	—		21		376		662

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.



	As of September 30, 2019
	Total Amortized Cost⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses⁽²⁾				Total Fair Value
	(Dollars in millions)
Fannie Mae		$	1,492		$	98		$	(8	)	$	1,582
Other agency		195			18			—			213
Alt-A and subprime private-label securities		102			124			—			226
Mortgage revenue bonds		339			10			(3		)	346
Other mortgage-related securities		320			5			(2		)	323
Total		$	2,448		$	255		$	(13	)	$	2,690



	As of December 31, 2018
	Total Amortized Cost⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses⁽²⁾				Total Fair Value
	(Dollars in millions)
Fannie Mae		$	1,754		$	69		$	(26	)	$	1,797
Other agency		239			17			—			256
Alt-A and subprime private-label securities		325			267			—			592
Mortgage revenue bonds		425			13			(4		)	434
Other mortgage-related securities		336			14			—			350
Total		$	3,079		$	380		$	(30	)	$	3,429


⁽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 “Investment gains, net” in our condensed consolidated statements of operations and comprehensive income.

⁽²⁾

Represents the gross unrealized losses on securities for which we have not recognized OTTI, as well as the noncredit component of OTTI and cumulative changes in fair value of securities for which we previously recognized the credit component of OTTI in “Accumulated other comprehensive income” in our condensed consolidated balance sheets.

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.



	As of September 30, 2019
	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		$	—		$	—		$	(8	)	$	348
Mortgage revenue bonds		—			—			(3		)	5
Other mortgage-related securities		(2		)	273			—			—
Total		$	(2	)	$	273		$	(11	)	$	353

	As of December 31, 2018
	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		$	—		$	—		$	(26	)	$	487
Mortgage revenue bonds		(1		)	24			(3		)	19
Total		$	(1	)	$	24		$	(29	)	$	506

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table displays net unrealized gains on AFS securities and other amounts within accumulated other comprehensive income (“AOCI”), net of tax, by major categories.



	As of
	September 30,			December 31,
	2019			2018
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded OTTI		$	191		$	52
Net unrealized gains on AFS securities for which we have recorded OTTI		—			224
Other		39			46
Accumulated other comprehensive income		$	230		$	322

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. 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, 2019
	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
	Total Amortized Cost			Total Fair Value		Amortized Cost			Fair Value		Amortized Cost			Fair Value		Amortized Cost			Fair Value		Amortized Cost			Fair Value
	(Dollars in millions)
Fannie Mae		$	1,492	$	1,582		$	—	$	—		$	14	$	15		$	101	$	111		$	1,377	$	1,456
Other agency		195		213			—		—			20		21			26		29			149		163
Alt-A and subprime private-label securities		102		226			—		—			—		—			1		1			101		225
Mortgage revenue bonds		339		346			2		2			26		27			36		37			275		280
Other mortgage-related securities		320		323			—		—			2		1			24		27			294		295
Total		$	2,448	$	2,690		$	2	$	2		$	62	$	64		$	188	$	205		$	2,196	$	2,419