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Investments in Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities [Table Text Block]

The following table displays our investments in trading securities.


	As of
	March 31, 2020					December 31, 2019
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae		$	3,530	$	3,424
Other agency⁽¹⁾		4,167		4,490
Private-label and other mortgage securities		444		629
Total mortgage-related securities (includes $863 million and $896 million, respectively, related to consolidated trusts)		8,141		8,543
Non-mortgage-related securities:
U.S. Treasury securities		44,727		39,501
Other securities		73		79
Total non-mortgage-related securities		44,800		39,580
Total trading securities		$	52,941	$	48,123

⁽¹⁾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.


		For the Three Months Ended March 31,

		2020		2019
	(Dollars in millions)
Net trading gains		$	647	$	92
Net trading gains recognized in the period related to securities still held at period end		591		89

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The following tables display the amortized cost, allowance for credit losses, gross unrealized gains and losses in accumulated other comprehensive income (loss) (“AOCI”), and fair value by major security type for AFS securities.


	As of March 31, 2020
	Total Amortized Cost⁽¹⁾					Allowance for Credit Losses			Gross Unrealized Gains in AOCI	Gross Unrealized Losses in AOCI				Total Fair Value⁽¹⁾
	(Dollars in millions)
Fannie Mae		$	1,393	$	—		$	123		$	(11)	$	1,505
Other agency⁽²⁾		171		—			19			—		190
Alt-A and subprime private-label securities		4		—			3			—		7

Mortgage revenue bonds		291		(3)			9			(1)		296
Other mortgage-related securities		288		—			3			—		291
Total		$	2,147	$	(3)		$	157		$	(12)	$	2,289


	As of December 31, 2019
	Total Amortized Cost⁽¹⁾⁽³⁾					Gross Unrealized Gains			Gross Unrealized Losses			Total Fair Value⁽¹⁾
	(Dollars in millions)
Fannie Mae		$	1,445	$	85		$	(10)		$	1,520
Other agency⁽²⁾		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

⁽¹⁾We exclude from amortized cost and fair value accrued interest of $8 million and $10 million as of March 31, 2020 and December 31, 2019, respectively, which we record in “Other assets” in our condensed consolidated balance sheets.

⁽²⁾Other agency securities consist of securities issued by Freddie Mac and Ginnie Mae.

⁽³⁾Prior to our adoption of the CECL standard, total amortized cost represented the unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as temporary impairments recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income.

Fannie Mae and Other Agency Securities

Our Fannie Mae and other agency AFS securities consist of securities issued by us, Freddie Mac, or Ginnie Mae. The principal and interest on these securities are guaranteed by the issuing agency. We believe that the guaranty provided by the issuing agency, the support provided to the agencies by the U.S. government, the importance of the agencies to the liquidity and stability in the secondary mortgage market, and the long history of zero credit losses on agency mortgage-related securities are all indicators that there are not currently credit losses on these securities, even if the security is in an unrealized loss position. In addition, we generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we do not recognize an allowance for credit losses on agency mortgage-related securities.

Non-Agency Mortgage-Related Securities

As of March 31, 2020, substantially all of our non-agency mortgage-related securities were in an unrealized gain position. As a result, we have not recognized an allowance for credit losses on these securities.

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 March 31, 2020
	Total Carrying Amount ⁽¹⁾					Total Fair Value			One Year or Less							After One Year Through Five Years									After Five Years Through Ten Years				After Ten Years
										Net Carrying Amount ⁽¹⁾				Fair Value		Net Carrying Amount ⁽¹⁾					Fair Value			Net Carrying Amount ⁽¹⁾			Fair Value	Net Carrying Amount ⁽¹⁾		Fair Value
	(Dollars in millions)
Fannie Mae		$	1,393	$	1,505		$	—		$	—	$	14	$	14		$	96	$	109		$	1,283		$	1,382
Other agency		171		190			—			—		16		17			23		25			132			148
Alt-A and subprime private-label securities		4		7			—			—		—		—			2		3			2			4

Mortgage revenue bonds		288		296			2			2		30		32			27		28			229			234
Other mortgage-related securities		288		291			—			—		—		—			23		24			265			267
Total		$	2,144	$	2,289		$	2		$	2	$	60	$	63		$	171	$	189		$	1,911		$	2,035

⁽¹⁾ Net carrying amount consists of book value, net of allowance for credit losses on AFS debt securities.

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, excluding allowance for credit losses.


	As of March 31, 2020
	Less Than 12 Consecutive Months									12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI					Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(1)	$	66		$	(10)		$	105
Mortgage revenue bonds		(1)		22			—			—

Total		$	(2)	$	88		$	(10)		$	105

	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

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 March 31,

		2020		2019
	(Dollars in millions)
Gross realized gains		$	21	$	61

Total proceeds (excludes initial sale of securities from new portfolio securitizations)		50		131

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

The following tables display net unrealized gains on AFS securities and other amounts accumulated within our accumulated other comprehensive income, net of tax.


	As of
	March 31, 2020
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	115

Other	31
Accumulated other comprehensive income	$	146


	As of
	December 31, 2019
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded OTTI	$	97

Other	34
Accumulated other comprehensive income	$	131