Finance Receivables and Loans, Net (Notes)

6 Months Ended

Jun. 30, 2020

Loans and Leases Receivable, Net Amount [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure

Finance Receivables and Loans, Net

The composition of finance receivables and loans reported at amortized cost basis was as follows.

($ in millions)	June 30, 2020		December 31, 2019
Consumer automotive (a)	$	72,712	$	72,390
Consumer mortgage
Mortgage Finance (b)	16,429		16,181
Mortgage — Legacy (c)	984		1,141
Total consumer mortgage	17,413		17,322
Consumer other (d)	240		212
Total consumer	90,365		89,924
Commercial
Commercial and industrial
Automotive	17,755		28,332
Other	5,315		5,014
Commercial real estate	4,799		4,961
Total commercial	27,869		38,307
Total finance receivables and loans (e) (f)	$	118,234	$	128,231

(a) Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 18 for additional information.

(b) Includes loans originated as interest-only mortgage loans of $8 million and $11 million at June 30, 2020, and December 31, 2019, respectively, 33% of which are expected to start principal amortization in 2020. The remainder of these loans have exited the interest-only period.

(c) Includes loans originated as interest-only mortgage loans of $171 million and $212 million at June 30, 2020, and December 31, 2019, respectively, of which 99% have exited the interest-only period.

(d) Includes $8 million and $11 million of finance receivables at June 30, 2020, and December 31, 2019, respectively, for which we have elected the fair value option.

(e) Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $2.0 billion at June 30, 2020.

(f) Totals do not include accrued interest receivable, which was $995 million and $488 million at June 30, 2020, and December 31, 2019, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.

The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three and six months ended June 30, 2020, and includes the cumulative effect of adopting ASU 2016-13.

Three months ended June 30, 2020 ($ in millions)	Consumer automotive			Consumer mortgage			Consumer other (a)			Commercial			Total
Allowance at April 1, 2020	$	2,833		$	39		$	45		$	328		$	3,245
Charge-offs (b)	(245		)	(2		)	(4		)	(40		)	(291		)
Recoveries	108			4			—			1			113
Net charge-offs	(137		)	2			(4		)	(39		)	(178		)
Provision for credit losses	269			1			6			11			287
Other	(2		)	—			2			—			—
Allowance at June 30, 2020	$	2,963		$	42		$	49		$	300		$	3,354

(a) Excludes $8 million of finance receivables at June 30, 2020, for which we have elected the fair value option.

(b) Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.

Six months ended June 30, 2020 ($ in millions)	Consumer automotive			Consumer mortgage			Consumer other (a)			Commercial			Total
Allowance at December 31, 2019	$	1,075		$	46		$	9		$	133		$	1,263
Cumulative effect of the adoption of Accounting Standards Update 2016-13	1,334			(6		)	16			2			1,346
Allowance at January 1, 2020	2,409			40			25			135			2,609
Charge-offs (b)	(618		)	(5		)	(9		)	(43		)	(675		)
Recoveries	219			9			1			2			231
Net charge-offs	(399		)	4			(8		)	(41		)	(444		)
Provision for credit losses	954			(2		)	31			207			1,190
Other	(1		)	—			1			(1		)	(1		)
Allowance at June 30, 2020	$	2,963		$	42		$	49		$	300		$	3,354

(a) Excludes $8 million and $11 million of finance receivables at June 30, 2020, and December 31, 2019, respectively, for which we have elected the fair value option.

(b) Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.

The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three and six months ended June 30, 2019, prior to the adoption of ASU 2016-13, as defined by the previous accounting guidance in effect at that time.

Three months ended June 30, 2019 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at April 1, 2019	$	1,070		$	52		$	166		$	1,288
Charge-offs (a)	(301		)	(5		)	(12		)	(318		)
Recoveries	129			7			—			136
Net charge-offs	(172		)	2			(12		)	(182		)
Provision for loan losses	180			(5		)	2			177
Other	—			—			(1		)	(1		)
Allowance at June 30, 2019	$	1,078		$	49		$	155		$	1,282

(a) Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K for more information regarding our charge-off policies.

Six months ended June 30, 2019 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at January 1, 2019	$	1,048		$	53		$	141		$	1,242
Charge-offs (a)	(653		)	(8		)	(17		)	(678		)
Recoveries	247			12			—			259
Net charge-offs	(406		)	4			(17		)	(419		)
Provision for credit losses	437			(8		)	30			459
Other	(1		)	—			1			—
Allowance at June 30, 2019	$	1,078		$	49		$	155		$	1,282
Allowance for loan losses at June 30, 2019
Individually evaluated for impairment	$	42		$	20		$	49		$	111
Collectively evaluated for impairment	1,036			29			106			1,171
Finance receivables and loans at gross carrying value
Ending balance	$	72,898		$	17,800		$	38,512		$	129,210
Individually evaluated for impairment	496			220			196			912
Collectively evaluated for impairment	72,402			17,580			38,316			128,298

(a) Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K for more information regarding our charge-off policies.

During the second half of March 2020, the broader economy experienced a significant deterioration driven by the COVID-19 pandemic, which impacted our allowance for loan losses. During the three months ended March 31, 2020, we recorded an additional $602 million of provision expense for credit losses associated with the deterioration in the macroeconomic outlook from COVID-19. During the second quarter of 2020, we incurred total provision expense of $287 million, which included $128 million attributable to the macroeconomic environment and other factors aside from changes in portfolio size and incremental charge-offs.

The following table presents information about significant sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2020		2019		2020		2019
Consumer automotive	$	—	$	—	$	—	$	20
Total sales and transfers (a)	$	—	$	—	$	—	$	20

(a) During the six months ended June 30, 2019, we also sold $131 million of loans held-for-sale that were initially classified as finance receivables and loans held-for-investment and were transferred to held-for-sale during 2018, and transferred $79 million of finance receivables from held-for-sale to held-for-investment, both relating to equipment finance receivables from our commercial automotive business.

The following table presents information about significant purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2020		2019		2020		2019
Consumer automotive	$	635	$	218	$	995	$	317
Consumer mortgage	1,870		678		2,354		1,913
Commercial	1		3		1		3
Total purchases of finance receivables and loans	$	2,506	$	899	$	3,350	$	2,233

Nonaccrual and Impaired Loans

Following the adoption of CECL as of January 1, 2020, the definitions of impairment and related impaired loan disclosures were removed. Under CECL, we present the amortized cost of our finance receivables and loans on nonaccrual status including such loans with no allowance. The following table presents the amortized cost of our finance receivables and loans on nonaccrual status as of the beginning or end of the three months and six months ended June 30, 2020. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of June 30, 2020, and December 31, 2019.

					June 30, 2020
($ in millions)	Nonaccrual status at Jan. 1, 2020		Nonaccrual status at April 1, 2020		Nonaccrual status		Nonaccrual with no allowance (a)
Consumer automotive	$	762	$	1,077	$	1,250	$	633
Consumer mortgage
Mortgage Finance	17		22		27		6
Mortgage — Legacy	40		40		36		28
Total consumer mortgage	57		62		63		34
Consumer other	2		1		1		—
Total consumer	821		1,140		1,314		667
Commercial
Commercial and industrial
Automotive	73		86		80		13
Other	138		162		132		78
Commercial real estate	4		8		6		6
Total commercial	215		256		218		97
Total consumer and commercial finance receivables and loans	$	1,036	$	1,396	$	1,532	$	764

(a) Represents a component of nonaccrual status at end of period.

During the three months and six months ended June 30, 2020, we recorded interest income from cash payments of $4 million and $6 million associated with finance receivables and loans in nonaccrual status.

The following table presents information about our impaired finance receivables and loans at December 31, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.

December 31, 2019 ($ in millions)	Unpaid principal balance (a)		Gross carrying value		Impaired with no allowance		Impaired with an allowance		Allowance for impaired loans
Consumer automotive	$	553	$	538	$	113	$	425	$	38
Consumer mortgage
Mortgage Finance	14		14		6		8		—
Mortgage — Legacy	199		194		64		130		18
Total consumer mortgage	213		208		70		138		18
Total consumer	766		746		183		563		56
Commercial
Commercial and industrial
Automotive	73		73		1		72		12
Other	170		138		73		65		21
Commercial real estate	4		4		4		—		—
Total commercial	247		215		78		137		33
Total consumer and commercial finance receivables and loans	$	1,013	$	961	$	261	$	700	$	89

(a) Adjusted for charge-offs.

The following table presents average balance and interest income for our impaired finance receivables and loans for the three months and six months ended June 30, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.

	Three months ended June 30, 2019				Six months ended June 30, 2019
($ in millions)	Average balance		Interest income		Average balance		Interest income
Consumer automotive	$	498	$	9	$	498	$	17
Consumer mortgage
Mortgage Finance	14		—		15		—
Mortgage — Legacy	209		2		211		5
Total consumer mortgage	223		2		226		5
Total consumer	721		11		724		22
Commercial
Commercial and industrial
Automotive	113		—		143		1
Other	108		—		117		—
Commercial real estate	6		—		6		—
Total commercial	227		—		266		1
Total consumer and commercial finance receivables and loans	$	948	$	11	$	990	$	23

Credit Quality Indicators

We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity, relative to the contractual terms of the loan. Beginning March 2020, in response to the COVID-19 pandemic, we began to offer several programs to help support our customers and manage credit risk.

In our automotive finance business, existing customers had the option to elect to defer their loan and lease payments for up to 120 days without late fees being incurred but, for consumer automotive loans, with finance charges continuing to accrue. This program was made available to consumer automotive loan and lease customers from March 18, 2020, through June 21, 2020. Approximately 1.3 million consumer automotive loan and lease customers enrolled in the program, and of the 1.2 million consumer automotive loan customers enrolled

in the program, 64% were granted a 120-day deferral at the time of enrollment. As of June 30, 2020, approximately 840,000 or 21% of our consumer automotive loan customers were enrolled in the program. Of these enrolled customers, approximately 97% were current on their loans at the time of enrollment, and approximately 16% chose to make at least one payment while in the deferral program. The vast majority of our loan deferrals for customers in the program are scheduled to expire by the end of August 2020.

In our mortgage-lending business, existing customers experiencing financial hardship due to an interruption of income related to the COVID-19 pandemic have been afforded the opportunity to defer their loan payments for up to 120 days, with an option for an additional 60 days, without late fees being incurred but with interest continuing to accrue. This program was made available to mortgage-lending customers beginning March 18, 2020, and we plan to make the program available through July 31, 2020. As of June 30, 2020, approximately 1,900 or 5% of our mortgage-lending customers were enrolled in the program. Approximately 92% of these enrolled customers were current on their loans at the time of enrollment. We expect that the initial forbearance period for the majority of these customers will end by September 30, 2020. As of June 30, 2020, approximately 44% of enrolled customers made a payment in the month of June.

In our personal-lending business, existing customers experiencing financial hardship due to the COVID-19 pandemic had the opportunity to elect to defer their loan payments for up to 120 days without late fees being incurred or finance charges continuing to accrue. In addition to this program, we temporarily suspended late fees for all customers with current accounts. The loan-deferral program was made available to personal-lending customers from March 23, 2020, through June 30, 2020. As of June 30, 2020, approximately 6,300 or 7% of our personal-lending customers were enrolled in the program. Approximately 84% of these enrolled customers were current on their loans at the time of enrollment. We expect that the majority of these customers will exit the program during the third quarter of 2020. As of June 30, 2020, approximately 20% of enrolled customers chose to make at least one payment during the deferral period.

In accordance with regulatory guidance, if borrowers are less than 30 days past due on their loans and enter into loan modifications offered as a result of COVID-19, their loans generally continue to be considered performing loans and continue to accrue interest during the period of the loan modification. For borrowers who are 30 days or more past due when entering into loan modifications offered as a result of COVID-19, we evaluate the loan modifications under our existing troubled debt restructuring framework, and where such a loan modification would result in a concession to a borrower experiencing financial difficulty, the loan will be accounted for as a TDR and will generally not accrue interest. For all borrowers who enroll in these loan modification programs offered as a result of COVID-19, the delinquency status of the borrowers is frozen as of the date immediately preceding the commencement of the program, resulting in a static delinquency metric during the deferral period. Upon exiting the deferral program, the measurement of loan delinquency will resume where it had left off upon entry into the program.

The following table presents the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status at June 30, 2020, and origination year.

	Origination year														Revolving loans converted to term
June 30, 2020 ($ in millions)	2020		2019		2018		2017		2016		2015 and prior		Revolving loans				Total
Consumer automotive
Current	$	13,963	$	23,534	$	15,405	$	9,404	$	5,152	$	2,905	$	—	$	—	$	70,363
30–59 days past due	52		410		374		270		176		114		—		—		1,396
60–89 days past due	17		122		120		87		59		39		—		—		444
90 or more days past due	9		121		136		107		79		57		—		—		509
Total consumer automotive	14,041		24,187		16,035		9,868		5,466		3,115		—		—		72,712
Consumer mortgage
Mortgage Finance
Current	2,047		3,006		2,380		3,151		1,375		4,364		—		1		16,324
30–59 days past due	9		7		12		14		11		30		—		—		83
60–89 days past due	—		1		3		1		4		3		—		—		12
90 or more days past due	—		—		2		1		1		6		—		—		10
Total Mortgage Finance	2,056		3,014		2,397		3,167		1,391		4,403		—		1		16,429
Mortgage — Legacy
Current	—		—		—		—		—		482		343		120		945
30–59 days past due	—		—		—		—		—		8		2		2		12
60–89 days past due	—		—		—		—		—		3		1		—		4
90 or more days past due	—		—		—		—		—		17		5		1		23
Total Mortgage — Legacy	—		—		—		—		—		510		351		123		984
Total consumer mortgage	2,056		3,014		2,397		3,167		1,391		4,913		351		124		17,413
Consumer other
Current	109		86		25		7		1		—		—		—		228
30–59 days past due	1		—		—		—		—		—		—		—		1
60–89 days past due	1		1		—		—		—		—		—		—		2
90 or more days past due	—		1		—		—		—		—		—		—		1
Total consumer other (a)	111		88		25		7		1		—		—		—		232
Total consumer	$	16,208	$	27,289	$	18,457	$	13,042	$	6,858	$	8,028	$	351	$	124	$	90,357

(a) Excludes $8 million of finance receivables at June 30, 2020, for which we have elected the fair value option.

The following table presents an analysis of our past-due finance receivables and loans recorded at amortized cost basis at December 31, 2019.

($ in millions)	30–59 days past due		60–89 days past due		90 days or more past due		Total past due		Current		Total finance receivables and loans
December 31, 2019
Consumer automotive	$	2,185	$	590	$	367	$	3,142	$	69,248	$	72,390
Consumer mortgage
Mortgage Finance	56		11		9		76		16,105		16,181
Mortgage — Legacy	25		8		28		61		1,080		1,141
Total consumer mortgage	81		19		37		137		17,185		17,322
Consumer other (a)	3		2		2		7		194		201
Total consumer	$	2,269	$	611	$	406	$	3,286	$	86,627	$	89,913

(a) Excludes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.

We evaluate the credit quality of our commercial loan portfolio using regulatory risk ratings, which are based on relevant information about the borrower’s financial condition, including current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. We use the following definitions for risk rankings.

Special mention Loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

Substandard Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weakness that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful Loans that have all the weaknesses inherent in those classified as substandard, with the additional characteristic that the weaknesses make collection or liquidation in full, based on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The regulatory risk classification utilized is influenced by internal credit risk ratings, which are based on a variety of factors. A borrower’s internal credit risk rating is updated at least annually, and more frequently when a borrower’s credit profile changes, including when we become aware of potential credit deterioration. The following table presents the amortized cost basis of our commercial finance receivables and loans by credit quality indicator based on risk rating at June 30, 2020, and origination year.

	Origination year														Revolving loans converted to term
June 30, 2020 ($ in millions)	2020		2019		2018		2017		2016		2015 and prior		Revolving loans				Total
Commercial and industrial
Automotive
Pass	$	785	$	281	$	107	$	112	$	72	$	78	$	13,802	$	—	$	15,237
Special mention	61		18		54		65		33		14		2,157		—		2,402
Substandard	1		2		—		—		—		—		82		—		85
Doubtful	—		—		1		2		—		—		28		—		31
Total automotive	847		301		162		179		105		92		16,069		—		17,755
Other
Pass	419		631		338		299		117		98		1,912		73		3,887
Special mention	—		202		256		225		94		119		293		38		1,227
Substandard	—		—		—		38		—		133		19		11		201
Doubtful	—		—		—		—		—		—		—		—		—
Total other	419		833		594		562		211		350		2,224		122		5,315
Commercial real estate
Pass	386		1,058		873		619		712		803		—		2		4,453
Special mention	16		71		62		69		84		31		—		—		333
Substandard	—		—		—		3		—		7		—		—		10
Doubtful	—		—		—		—		2		1		—		—		3
Total commercial real estate	402		1,129		935		691		798		842		—		2		4,799
Total commercial	$	1,668	$	2,263	$	1,691	$	1,432	$	1,114	$	1,284	$	18,293	$	124	$	27,869

The following table presents historical credit quality indicators for our commercial finance receivables and loans at December 31, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.

	December 31, 2019
($ in millions)	Pass		Criticized (a)		Total
Commercial and industrial
Automotive	$	25,235	$	3,097	$	28,332
Other	4,225		789		5,014
Commercial real estate	4,620		341		4,961
Total commercial	$	34,080	$	4,227	$	38,307

(a) Includes loans classified as special mention, substandard, or doubtful. These classifications are based on regulatory definitions and generally represent loans within our portfolio that have a higher default risk or have already defaulted.

As a result of the COVID-19 pandemic, we announced a series of actions to support our automotive-dealer customers and manage credit risk within our lending portfolios. For dealers with current accounts, we have offered for up to four months a waiver of curtailments on wholesale floorplan loans, an increase in used vehicle floorplan advance rates, a deferral of interest and insurance charges on wholesale borrowings, and a deferral of term loan payments. As of June 30, 2020, approximately 2,290 or 73% of eligible dealers had requested at least one form of this assistance. Approximately 39% of eligible wholesale dealers deferred wholesale interest and insurance payments during the second quarter of 2020, which represented a decline from the first quarter of approximately 20 percentage points. Dealers that elected to defer wholesale interest and insurance payments have the option to repay such balances over a 4- or 12-month period without additional interest charges or fees. The accounts enrolled in the program continue to accrue interest on principal balances in accordance with recently issued guidance from regulators. Additionally, if the borrower was no more than 30 days past due as of the date the modification program was implemented, the modification was not considered a TDR.

The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.

($ in millions)	30–59 days past due		60–89 days past due		90 days or more past due		Total past due		Current		Total finance receivables and loans
June 30, 2020
Commercial
Commercial and industrial
Automotive	$	—	$	1	$	48	$	49	$	17,706	$	17,755
Other	—		—		—		—		5,315		5,315
Commercial real estate	—		—		6		6		4,793		4,799
Total commercial	$	—	$	1	$	54	$	55	$	27,814	$	27,869
December 31, 2019
Commercial
Commercial and industrial
Automotive	$	34	$	—	$	28	$	62	$	28,270	$	28,332
Other	—		—		17		17		4,997		5,014
Commercial real estate	—		—		4		4		4,957		4,961
Total commercial	$	34	$	—	$	49	$	83	$	38,224	$	38,307

Troubled Debt Restructurings

TDRs are loan modifications where concessions were granted to borrowers experiencing financial difficulties. For consumer automotive loans, we may offer several types of assistance to aid our customers, including payment extensions and rewrites of the loan terms. Additionally, for mortgage loans, as part of certain programs, we offer mortgage loan modifications to qualified borrowers. These programs are in place to provide support to our mortgage customers in financial distress, including principal forgiveness, maturity extensions, delinquent interest capitalization, and changes to contractual interest rates. Total TDRs recorded at amortized cost were $1.3 billion and $867 million at June 30, 2020, and December 31, 2019, respectively.

In March 2020, a joint statement was issued by federal and state regulatory agencies, after consultation with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as

nonaccrual during the term of the modification. For borrowers who are 30 days or more past due when enrolling in a loan modification program related to the COVID-19 pandemic, we evaluate the loan modifications under our existing TDR framework, and where such a loan modification would result in a concession to a borrower experiencing financial difficulty, the loan will be accounted for as a TDR and will generally not accrue interest.

Total commitments to lend additional funds to borrowers whose terms had been modified in a TDR were $16 million and $17 million at June 30, 2020, and December 31, 2019, respectively. Refer to Note 1 for additional information.

The following tables present information related to finance receivables and loans recorded at amortized cost modified in connection with a TDR during the period.

	2020					2019
Three months ended June 30, ($ in millions)	Number of loans	Pre-modification amortized cost basis		Post-modification amortized cost basis		Number of loans	Pre-modification amortized cost basis		Post-modification amortized cost basis
Consumer automotive (a)	21,293	$	323	$	297	5,598	$	96	$	85
Consumer mortgage
Mortgage Finance (b)	19	11		11		2	—		—
Mortgage — Legacy (c)	23	3		3		18	3		3
Total consumer mortgage	42	14		14		20	3		3
Total consumer	21,335	337		311		5,618	99		88
Commercial
Commercial and industrial
Automotive	2	31		26		—	—		—
Other	1	23		7		1	22		6
Total commercial	3	54		33		1	22		6
Total consumer and commercial finance receivables and loans	21,338	$	391	$	344	5,619	$	121	$	94

(a) Includes 13,615 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $191 million at June 30, 2020.

(b) Includes 19 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $11 million at June 30, 2020.

(c) Includes 20 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $2 million at June 30, 2020.

	2020					2019
Six months ended June 30, ($ in millions)	Number of loans	Pre-modification amortized cost basis		Post-modification amortized cost basis		Number of loans	Pre-modification amortized cost basis		Post-modification amortized cost basis
Consumer automotive (a)	44,093	$	663	$	615	13,025	$	225	$	196
Consumer mortgage
Mortgage Finance (b)	29	15		15		3	—		—
Mortgage — Legacy (c)	55	7		7		38	6		6
Total consumer mortgage	84	22		22		41	6		6
Total consumer	44,177	685		637		13,066	231		202
Commercial
Commercial and industrial
Automotive	3	38		33		6	41		41
Other	1	23		7		1	22		6
Total commercial	4	61		40		7	63		47
Total consumer and commercial finance receivables and loans	44,181	$	746	$	677	13,073	$	294	$	249

(a) Includes 30,382 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $429 million at June 30, 2020.

(b) Includes 27 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $14 million at June 30, 2020.

(c) Includes 35 loans modified as a result of COVID-19 with both a pre-modification and post-modification amount of $4 million at June 30, 2020.

The following tables present information about finance receivables and loans recorded at amortized cost that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy (refer to Note 1 for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.

	2020					2019
Three months ended June 30, ($ in millions)	Number of loans	Amortized cost		Charge-off amount		Number of loans	Amortized cost		Charge-off amount
Consumer automotive	1,119	$	11	$	8	1,752	$	20	$	12
Total consumer finance receivables and loans	1,119	$	11	$	8	1,752	$	20	$	12

	2020					2019
Six months ended June 30, ($ in millions)	Number of loans	Amortized cost		Charge-off amount		Number of loans	Amortized cost		Charge-off amount
Consumer automotive	2,283	$	24	$	17	3,961	$	46	$	28
Total consumer finance receivables and loans	2,283	$	24	$	17	3,961	$	46	$	28