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Receivables Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Summary of Activity of Real Estate Secured Receivables Either Transferred to REO or Sold in a Short Sale
The following table summarizes the activity of real estate secured receivables either transferred to REO or sold in a short sale during 2014, 2013 and 2012.
 
2014
 
2013
 
2012
 
(in millions)
Carrying value of real estate secured receivables:
 
 
 
 
 
Transferred to REO after obtaining title to the underlying collateral
$
182

 
$
529

 
$
168

Short sales
61

 
182

 
96

Impact to lower of amortized cost or fair value adjustment previously recorded resulting from the transfer to REO or short sales:
 
 
 
 
 
Transferred to REO after obtaining title to the underlying collateral
5

 
(40
)
 
(50
)
Short Sales
3

 
(22
)
 
(20
)
Summary of Activity in Receivables Held for Sale
The following table summarizes the activity in receivables held for sale during 2014, 2013 and 2012:
 
Real Estate Secured
 
Personal Non-Credit Card
 
Total
 
(in millions)
Year Ended December 31, 2014:
 
 
 
 
 
Real estate secured receivables held for sale at beginning of period
$
2,047

 
$
—

 
$
2,047

Real estate secured receivables sold
(2,152
)
 
—

 
(2,152
)
Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale
314

 
—

 
314

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(243
)
 
—

 
(243
)
Change in real estate secured receivable balance, including collections
30

 
—

 
30

Transfer of real estate secured receivables into held for investment at the lower of amortized cost or fair value(1)
(45
)
 
—

 
(45
)
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(2)
909

 
—

 
909

Real estate secured receivables held for sale at end of period(3)
$
860

 
$
—

 
$
860

Year Ended December 31, 2013:
 
 
 
 
 
Receivables held for sale at beginning of period
$
3,022

 
$
3,181

 
$
6,203

Receivable sales:
 
 
 
 
 
First lien real estate secured
(3,127
)
 
—

 
(3,127
)
Personal non-credit card receivables
—

 
(2,947
)
 
(2,947
)
Lower of amortized cost or fair value adjustment on receivables held for sale
830

 
(82
)
 
748

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(711
)
 
—

 
(711
)
Change in receivable balance, including collections
(97
)
 
(152
)
 
(249
)
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(2)
2,130

 
—

 
2,130

Receivables held for sale at end of period(3)
$
2,047

 
$
—

 
$
2,047

Year Ended December 31, 2012:
 
 
 
 
 
Receivables held for sale at beginning of period
$
—

 
$
—

 
$
—

Lower of amortized cost or fair value adjustment on receivables held for sale
(3
)
 
21

 
18

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(264
)
 
—

 
(264
)
Change in receivable balance, including collections
2

 
(309
)
 
(307
)
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(2)
3,287

 
3,469

 
6,756

Receivables held for sale at end of period(3)
$
3,022

 
$
3,181

 
$
6,203

 
(1) 
During 2014, we identified a small number of receivables held for sale which did not meet our criteria to be classified as held for sale. As a result we transferred these receivables to held for investment at the lower of amortized cost or fair value.
(2) 
The initial lower of amortized cost or fair value adjustment on receivables transferred into held for sale during 2014, 2013 and 2012 totaled $113 million, $212 million and $1,659 million, respectively.
(3) 
The following table provides a rollforward of our valuation allowance for 2014, 2013 and 2012. At December 31, 2014, the valuation allowance is zero as the fair value of the pool of receivables held for sale at December 31, 2014 exceeds the carrying value as these receivables are carried at the lower of amortized cost or fair value. See Note 20, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables.
Allowance for Credit Losses on Financing Receivables
The following table provides a rollforward of our valuation allowance for 2014, 2013 and 2012. At December 31, 2014, the valuation allowance is zero as the fair value of the pool of receivables held for sale at December 31, 2014 exceeds the carrying value as these receivables are carried at the lower of amortized cost or fair value. See Note 20, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables.
Year Ended December 31,
2014
 
2013
 
2012
 
(in millions)
Balance at beginning of period
$
329

 
$
1,452

 
$
—

Initial valuation allowance for real estate secured receivables transferred to held for sale during the period
113

 
212

 
1,547

Release of valuation allowance resulting from improvements in fair value
(314
)
 
(748
)
 
(18
)
Valuation allowance on real estate secured receivables transferred to held for investment
(10
)
 
—

 
—

Change in valuation allowance for loans sold
149

 
(183
)
 
—

Change in valuation allowance for collections, charged-off, transferred to REO or short sale
(267
)
 
(404
)
 
(77
)
Balance at end of period
$
—

 
$
329

 
$
1,452
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment
The following table summarizes the components of the lower of amortized cost or fair value adjustment recorded in other revenues during 2014, 2013 and 2012:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
(Income)/Expense:
 
 
 
 
 
 
 
Year Ended December 31, 2014:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
113

 
$
—

 
$
—

 
$
113

Subsequent to initial transfer to held for sale
(322
)
 
5

 
3

 
(314
)
Lower of amortized cost or fair value adjustment recorded through other revenues(1)
$
(209
)
 
$
5

 
$
3

 
$
(201
)
 
 
 
 
 
 
 
 
Year Ended December 31, 2013:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
212

 
$
—

 
$
—

 
$
212

Subsequent to initial transfer to held for sale
(686
)
 
(40
)
 
(22
)
 
(748
)
Lower of amortized cost or fair value adjustment recorded through other revenues(1)
$
(474
)
 
$
(40
)
 
$
(22
)
 
$
(536
)
 
 
 
 
 
 
 
 
Year Ended December 31, 2012:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustment recorded as a provision for credit losses
$
112

 
$
—

 
$
—

 
$
112

Lower of amortized cost or fair value adjustment recorded as other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
1,547

 
—

 
—

 
1,547

Subsequent to initial transfer to held for sale
52

 
(50
)
 
(20
)
 
(18
)
Lower of amortized cost or fair value adjustment recorded through other revenues
1,599

 
(50
)
 
(20
)
 
1,529

Lower of amortized cost or fair value adjustment
$
1,711

 
$
(50
)
 
$
(20
)
 
$
1,641

 

(1) 
During 2014 and 2013, no lower of amortized cost or fair value adjustment was recorded as a provision for credit losses.