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Investments in Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

The following table displays our investments in trading securities.



	As of December 31,
	2019		2018
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae⁽¹⁾	$	3,424	$	1,467
Other agency⁽²⁾	4,490		3,503
Private-label and other mortgage securities	629		1,306
Total mortgage-related securities (includes $896 and $32, respectively, related to consolidated trusts)	8,543		6,276
Non-mortgage-related securities:
U.S. Treasury securities	39,501		35,502
Other securities	79		89
Total non-mortgage-related securities	39,580		35,591
Total trading securities	$	48,123	$	41,867

Schedule of Trading Securities Gains (Losses), Net

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



	For the Year Ended December 31,
	2019			2018		2017
	(Dollars in millions)
Net trading gains		$	322	$	126		$	190
Net trading gains recognized in the period related to securities still held at period end		238		55			161

Schedule of Available-for-sale Securities Realized Gain (Loss)

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



	For the Year Ended December 31,
	2019		2018		2017
	(Dollars in millions)
Gross realized gains	$	265	$	375	$	487
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	537		662		1,780

Schedule of Available-for-sale Securities Reconciliation

The following tables display the amortized cost, gross unrealized gains and losses, and fair value by major security type for AFS securities.



	As of December 31, 2019
	Total Amortized Cost⁽¹⁾			Gross Unrealized Gains			Gross Unrealized Losses⁽²⁾				Total Fair Value
	(Dollars in millions)
Fannie Mae		$	1,445		$	85		$	(10	)	$	1,520
Other agency		183			15			—			198
Alt-A and subprime private-label securities		34			23			—			57
Mortgage revenue bonds		309			9			(3		)	315
Other mortgage-related securities		310			5			(1		)	314
Total		$	2,281		$	137		$	(14	)	$	2,404



	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 OTTI recognized in “Investment gains, net” in our 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 consolidated balance sheets.

The decrease in Alt-A and subprime private-label for the year ended December 31, 2019 compared with the year ended December 31, 2018 was primarily attributable to sales of subprime private-label securities.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

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 December 31, 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		$	—		$	—		$	(10	)	$	337
Mortgage revenue bonds		—			—			(3		)	3
Other mortgage-related securities		(1		)	130			—			—
Total		$	(1	)	$	130		$	(13	)	$	340

	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

Investments Classified by Contractual Maturity Date

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 December 31, 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		$	1,445		$	1,520		$	—		$	—		$	15		$	16		$	95		$	104		$	1,335		$	1,400
Other agency		183			198			—			—			18			18			24			27			141			153
Alt-A and subprime private-label securities		34			57			—			—			—			—			3			3			31			54
Mortgage revenue bonds		309			315			2			2			31			32			29			30			247			251
Other mortgage-related securities		310			314			—			—			—			—			24			26			286			288
Total		$	2,281		$	2,404		$	2		$	2		$	64		$	66		$	175		$	190		$	2,040		$	2,146
Weighted-average yield ⁽¹⁾		6.48		%				5.51		%				6.30		%				6.19		%				6.51		%

⁽¹⁾

Yields are determined by dividing interest income (including amortization and accretion of premiums, discounts and other cost basis adjustments) by amortized cost balances as of year-end. Yields on tax-exempt obligations have been computed on a tax equivalent basis.

Schedule of Accumulated Other Comprehensive Income (Loss)

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 December 31,
	2019		2018		2017
	(Dollars in millions)

Net unrealized gains on AFS securities for which we have not recorded OTTI	$	97	$	52	$	87
Net unrealized gains on AFS securities for which we have recorded OTTI	—		224		423
Other	34		46		43
Accumulated other comprehensive income	$	131	$	322	$	553