Investments in Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities.

	As of
	June 30, 2021			December 31, 2020
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae		$	1,836		$	2,404
Other agency(1)		3,333			3,451
Private-label and other mortgage securities		152			158
Total mortgage-related securities (includes $689 million and $793 million, respectively, related to consolidated trusts)		5,321			6,013
Non-mortgage-related securities:
U.S. Treasury securities		89,707			130,456
Other securities		73			73
Total non-mortgage-related securities		89,780			130,529
Total trading securities		$	95,101		$	136,542

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

Schedule of Trading Securities Gains (Losses), Net

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars in millions)
Net trading gains (losses)	$	161	$	135	$	(597)	$	782
Net trading gains (losses) recognized in the period related to securities still held at period end	156		70		(586)		525

Schedule of Available-for-sale Securities Reconciliation

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 June 30, 2021
	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		$	550	$	—	$	20		$	(7)	$	563
Other agency(2)		14		—		1			—		15
Alt-A and subprime private-label securities		4		—		1			—		5
Mortgage revenue bonds		169		(3)		6			—		172
Other mortgage-related securities		195		—		5			—		200
Total		$	932	$	(3)	$	33		$	(7)	$	955

	As of December 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		$	1,094		$	—		$	86		$	(12)	$	1,168
Other agency(2)		59			—			6			—		65
Alt-A and subprime private-label securities		4			—			2			—		6
Mortgage revenue bonds		211			(3)			8			—		216
Other mortgage-related securities		238			—			4			—		242
Total		$	1,606		$	(3)		$	106		$	(12)	$	1,697

(1)We exclude from amortized cost and fair value accrued interest of $3 million and $6 million as of June 30, 2021 and December 31, 2020, 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.

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, excluding allowance for credit losses.

	As of
	June 30, 2021										December 31, 2020
	Less Than 12 Consecutive Months					12 Consecutive Months or Longer					Less Than 12 Consecutive Months					12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	—	$	—		$	(7)	$	129		$	(1)	$	40		$	(11)	$	94

Schedule of Realized Gain (Loss)

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars in millions)
Gross realized gains	$	46	$	9	$	59	$	30
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	467		71		582		121

Schedule of Accumulated Other Comprehensive Income (Loss)

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
	June 30, 2021		December 31, 2020
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	20	$	74
Other	37		42
Accumulated other comprehensive income	$	57	$	116

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 June 30, 2021
	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		$	550	$	563		$	—	$	—		$	3	$	3		$	12	$	14		$	535	$	546
Other agency		14		15			—		—			—		—			1		1			13		14
Alt-A and subprime private-label securities		4		5			—		—			—		—			2		2			2		3
Mortgage revenue bonds		166		172			1		1			23		24			19		19			123		128
Other mortgage-related securities		195		200			—		—			—		—			4		5			191		195
Total		$	929	$	955		$	1	$	1		$	26	$	27		$	38	$	41		$	864	$	886

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