Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table displays

the components of our provision for federal income taxes.

	For the Year Ended December 31,
	2023	2022	2021
	(Dollars in millions)
Current income tax benefit (provision)	$(3,317)	$(3,505)	$(5,521)
Deferred income tax benefit (provision)(1)	(1,231)	195	(252)
Provision for federal income taxes	$(4,548)	$(3,310)	$(5,773)

(1)Amount excludes the current income tax effect of items recognized directly in “Total stockholders' equity.”

Schedule of Effective Income Tax Rate Reconciliation

The following table displays the difference between the statutory corporate tax rate and our effective tax rate.

	For the Year Ended December 31,
	2023			2022			2021
Statutory corporate tax rate		21.0	%		21.0	%		21.0	%
Research tax credits		(0.2)			(1.5)			—
Equity investments in affordable housing projects		(0.2)			(0.1)			(0.1)
Valuation allowance		0.1			0.7			—
Other		—			0.3			(0.2)
Effective tax rate		20.7	%		20.4	%		20.7	%

Schedule of Deferred Tax Assets and Liabilities

The following table displays our deferred tax assets and deferred tax liabilities.

	As of December 31,
	2023		2022
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$5,944		$6,764
Allowance for loan losses and basis in acquired property, net		1,571		2,055
Derivative instruments		766		1,153
Partnership and other equity investments		21		52
Interest-only securities		3,801		3,811
Other, net		617		295
Total deferred tax assets		12,720		14,130
Deferred tax liabilities:
Debt instruments		894		1,104
Valuation allowance		(145)		(115)
Deferred tax assets, net		$11,681		$12,911

Schedule of Unrecognized Tax Benefits Roll Forward

The following table displays the changes in our unrecognized tax benefits.

	For the Year Ended December 31,
	2023		2022		2021
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$60		$—		$—
Gross increases - tax positions in current year		9		60		—
Unrecognized tax benefits as of December 31		$69		$60		$—