Investments in Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities.

		As of
		March 31, 2022		December 31, 2021
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae		$	1,789	$	1,576
Other agency(1)		2,710		2,893
Private-label and other mortgage securities		127		137
Total mortgage-related securities (includes $499 million and $593 million, respectively, related to consolidated trusts)		4,626		4,606
Non-mortgage-related securities:
U.S. Treasury securities		79,987		83,581
Other securities		16		19
Total non-mortgage-related securities		80,003		83,600
Total trading securities		$	84,629	$	88,206

(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 March 31,
		2022		2021
	(Dollars in millions)
Net trading losses		$	(1,770)	$	(758)
Net trading losses recognized in the period related to securities still held at period end		(1,714)		(759)

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 March 31, 2022
	Total Amortized Cost(1)			Allowance for Credit Losses(2)		Gross Unrealized Gains in AOCI		Gross Unrealized Losses in AOCI		Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	478	$	—	$	10	$	(12)	$	476
Other agency(3)		11		—		1		—		12
Alt-A and subprime private-label securities		3		—		2		—		5
Mortgage revenue bonds		139		—		4		(2)		141
Other mortgage-related securities		171		—		1		—		172
Total		$	802	$	—	$	18	$	(14)	$	806

	As of December 31, 2021
	Total Amortized Cost(1)			Allowance for Credit Losses(2)		Gross Unrealized Gains in AOCI		Gross Unrealized Losses in AOCI		Total Fair Value(1)
	(Dollars in millions)
Fannie Mae		$	492	$	—	$	14	$	(11)	$	495
Other agency(3)		12		—		—		—		12
Alt-A and subprime private-label securities		3		—		2		—		5
Mortgage revenue bonds		142		—		5		(3)		144
Other mortgage-related securities		178		—		3		—		181
Total		$	827	$	—	$	24	$	(14)	$	837

(1)We exclude from amortized cost and fair value accrued interest of $2 million as of March 31, 2022 and December 31, 2021, which we record in “Accrued interest receivable, net” in our condensed consolidated balance sheets.

(2)Total allowance for credit losses is less than $0.5 million as of March 31, 2022 and December 31, 2021.

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

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

The following table displays 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, 2022										December 31, 2021
	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		$	(9)	$	214		$	(3)	$	97		$	(5)	$	225		$	(6)	$	102
Mortgage revenue bonds		(2)		3			—		—			(3)		3			—		—
Total		$	(11)	$	217		$	(3)	$	97		$	(8)	$	228		$	(6)	$	102

Schedule of Realized Gain (Loss)

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

	For the Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Gross realized gains	$	—	$	13
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	—		115

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table displays net unrealized gains and losses on AFS securities and other amounts recorded within our accumulated other comprehensive income, net of tax.

	As of
	March 31, 2022		December 31, 2021
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	4	$	9
Net unrealized gains (losses) on AFS securities for which we have recorded an allowance for credit losses	(2)		(2)
Other	29		31
Accumulated other comprehensive income	$	31	$	38

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 March 31, 2022
	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		$	478	$	476		$	—	$	—		$	3	$	3		$	15	$	16		$	460	$	457
Other agency		11		12			—		—			—		—			1		1			10		11
Alt-A and subprime private-label securities		3		5			—		—			—		—			2		2			1		3
Mortgage revenue bonds		139		141			4		4			20		21			10		10			105		106
Other mortgage-related securities		171		172			—		—			—		—			3		3			168		169
Total		$	802	$	806		$	4	$	4		$	23	$	24		$	31	$	32		$	744	$	746

(1)Net carrying amount consists of amortized cost, net of allowance for credit losses on AFS debt securities but does not include any unrealized fair value gains or losses.