Securitizations and Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Securitizations and Variable Interest Entities [Abstract]

Securitizations and Variable Interest Entities

Note 10: Securitizations and Variable Interest Entities

Involvement with Special Purpose Entities (SPEs)

In the normal course of business, we enter into various types of on- and off-balance sheet transactions with SPEs, which are corporations, trusts, limited liability companies or partnerships that are established for a limited purpose. Generally, SPEs are formed in connection with securitization transactions and are considered variable interest entities (VIEs). For further description of our involvement with SPEs, see Note 9 (Securitizations and Variable Interest Entities) in our 2018 Form 10-K.

We have segregated our involvement with VIEs between those VIEs which we consolidate, those which we do not consolidate and those for which we account for the transfers of financial assets as secured borrowings. Secured borrowings are transactions involving transfers of our financial assets to third parties that are accounted for as financings with the assets pledged as collateral. Accordingly, the transferred assets remain recognized on our balance sheet. Subsequent tables within this Note further segregate these transactions by structure type.

Table 10.1 provides the classifications of assets and liabilities in our balance sheet for our transactions with VIEs.

Table 10.1: Balance Sheet Transactions with VIEs

(in millions)	VIEs that we do not consolidate		VIEs that we consolidate	Transfers that we account for as secured borrowings		Total
June 30, 2019
Cash and due from banks	$	—	11		—	11
Interest-earning deposits with banks	—		8		—	8
Debt securities:
Trading debt securities	2,072		60		200	2,332
Available-for-sale debt securities (1)	1,879		—		68	1,947
Held-to-maturity debt securities	560		—		—	560
Loans	1,214		13,602		87	14,903
Mortgage servicing rights	12,354		—		—	12,354
Derivative assets	143		—		—	143
Equity securities	11,211		121		—	11,332
Other assets	—		208		2	210
Total assets	29,433		14,010		357	43,800
Short-term borrowings	—		—		263	263
Derivative liabilities	1		1	(2)	—	2
Accrued expenses and other liabilities	198		201	(2)	2	401
Long-term debt	3,857		748	(2)	85	4,690
Total liabilities	4,056		950		350	5,356
Noncontrolling interests	—		41		—	41
Net assets	$	25,377	13,019		7	38,403
December 31, 2018
Cash and due from banks	$	—	139		—	139
Interest-earning deposits with banks	—		8		—	8
Debt securities:
Trading debt securities	2,110		45		200	2,355
Available-for-sale debt securities (1)	2,686		—		317	3,003
Held-to-maturity debt securities	510		—		—	510
Loans	1,433		13,564		94	15,091
Mortgage servicing rights	14,761		—		—	14,761
Derivative assets	53		—		—	53
Equity securities	11,041		85		—	11,126
Other assets	—		221		6	227
Total assets	32,594		14,062		617	47,273
Short-term borrowings	—		—		493	493
Derivative liabilities	26		—	(2)	—	26
Accrued expenses and other liabilities	231		191	(2)	8	430
Long-term debt	3,870		816	(2)	93	4,779
Total liabilities	4,127		1,007		594	5,728
Noncontrolling interests	—		34		—	34
Net assets	$	28,467	13,021		23	41,511

(1) Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and GNMA.

(2) There were no VIE liabilities with recourse to the general credit of Wells Fargo for the periods presented.

Transactions with Unconsolidated VIEs

Our transactions with unconsolidated VIEs include securitizations of residential mortgage loans, CRE loans, student loans, automobile loans and leases, certain dealer floorplan loans; investment and financing activities involving collateralized debt obligations (CDOs) backed by asset-backed and CRE securities, tax credit structures, collateralized loan obligations (CLOs) backed by corporate loans, and other types of structured financing. We have various forms of involvement with VIEs, including servicing, holding senior or subordinated interests, entering into liquidity arrangements, credit default swaps and other derivative contracts. Involvements with these unconsolidated VIEs are recorded on our balance sheet in debt and equity securities, loans, MSRs, derivative assets and liabilities, other assets, other liabilities, and long-term debt, as appropriate.

Table 10.2 provides a summary of unconsolidated VIEs with which we have significant continuing involvement, but we are not the primary beneficiary. We do not consider our continuing involvement in an unconsolidated VIE to be significant when it relates to third-party sponsored VIEs for which we were not the transferor (unless we are servicer and have other significant forms of involvement) or if we were the sponsor only or sponsor

and servicer but do not have any other forms of significant involvement.

Significant continuing involvement includes transactions where we were the sponsor or transferor and have other significant forms of involvement. Sponsorship includes transactions with unconsolidated VIEs where we solely or materially participated in the initial design or structuring of the entity or marketing of the transaction to investors. When we transfer assets to a VIE and account for the transfer as a sale, we are considered the transferor. We consider investments in securities (other than those held temporarily in trading), loans, guarantees, liquidity agreements, written options and servicing of collateral to be other forms of involvement that may be significant. We have excluded certain transactions with unconsolidated VIEs from the balances presented in the following table where we have determined that our continuing involvement is not significant due to the temporary nature and size of our variable interests, because we were not the transferor or because we were not involved in the design of the unconsolidated VIEs. We also exclude from the table secured borrowing transactions with unconsolidated VIEs (for information on these transactions, see the Transactions with Consolidated VIEs and Secured Borrowings section in this Note).

Table 10.2: Unconsolidated VIEs

			Carrying value – asset (liability)
(in millions)	Total VIE assets		Debt and equity interests (1)		Servicing assets	Derivatives	Other commitments and guarantees		Net assets
June 30, 2019
Residential mortgage loan securitizations:
Conforming (2)	$	1,132,124	2,367		11,420	—	(136	)	13,651
Other/nonconforming	9,438		37		57	—	—		94
Commercial mortgage securitizations	154,690		2,041		877	85	(42	)	2,961
Collateralized debt obligations:
Debt securities	637		—		—	4	(20	)	(16	)
Asset-based finance structures	244		143		—	—	—		143
Tax credit structures	36,888		12,232		—	—	(3,857	)	8,375
Collateralized loan obligations	176		1		—	—	—		1
Investment funds	210		49		—	—	—		49
Other (3)	1,508		66		—	53	—		119
Total	$	1,335,915	16,936		12,354	142	(4,055	)	25,377
			Maximum exposure to loss
			Debt and equity interests (1)		Servicing assets	Derivatives	Other commitments and guarantees		Total exposure
Residential mortgage loan securitizations:
Conforming			$	2,367	11,420	—	902		14,689
Other/nonconforming			37		57	—	—		94
Commercial mortgage securitizations			2,041		877	85	12,007		15,010
Collateralized debt obligations:
Debt securities			—		—	4	20		24
Asset-based finance structures			143		—	—	71		214
Tax credit structures			12,232		—	—	1,373		13,605
Collateralized loan obligations			1		—	—	—		1
Investment funds			49		—	—	—		49
Other (3)			66		—	54	159		279
Total			$	16,936	12,354	143	14,532		43,965

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			Carrying value – asset (liability)
(in millions)	Total VIE assets		Debt and equity interests (1)		Servicing assets	Derivatives		Other commitments and guarantees		Net assets
December 31, 2018
Residential mortgage loan securitizations:
Conforming (2)	$	1,172,833	2,377		13,811	—		(171	)	16,017
Other/nonconforming	10,596		453		57	—		—		510
Commercial mortgage securitizations	153,350		2,409		893	(22	)	(40	)	3,240
Collateralized debt obligations:
Debt securities	659		—		—	5		(20	)	(15	)
Asset-based finance structures	304		205		—	—		—		205
Tax credit structures	35,185		12,087		—	—		(3,870	)	8,217
Collateralized loan obligations	2		—		—	—		—		—
Investment funds	185		42		—	—		—		42
Other (3)	1,688		207		—	44		—		251
Total	$	1,374,802	17,780		14,761	27		(4,101	)	28,467
			Maximum exposure to loss
			Debt and equity interests (1)		Servicing assets	Derivatives		Other commitments and guarantees		Total exposure
Residential mortgage loan securitizations:
Conforming			$	2,377	13,811	—		1,183		17,371
Other/nonconforming			453		57	—		—		510
Commercial mortgage securitizations			2,409		893	28		11,563		14,893
Collateralized debt obligations:
Debt securities			—		—	5		20		25
Asset-based finance structures			205		—	—		71		276
Tax credit structures			12,087		—	—		1,420		13,507
Collateralized loan obligations			—		—	—		—		—
Investment funds			42		—	—		—		42
Other (3)			207		—	45		158		410
Total			$	17,780	14,761	78		14,415		47,034

(1) Includes total equity interests of $11.2 billion and $11.0 billion at June 30, 2019, and December 31, 2018, respectively. Also includes debt interests in the form of both loans and securities. Excludes certain debt securities held related to loans serviced for FNMA, FHLMC and GNMA.

(2) Excludes assets and related liabilities with a recorded carrying value on our balance sheet of $551 million and $1.2 billion at June 30, 2019, and December 31, 2018, respectively, for certain delinquent loans that are eligible for repurchase from GNMA loan securitizations. The recorded carrying value represents the amount that would be payable if the Company was to exercise the repurchase option. The carrying amounts are excluded from the table because the loans eligible for repurchase do not represent interests in the VIEs.

(3) Includes structured financing and credit-linked note structures.

In Table 10.2, “Total VIE assets” represents the remaining principal balance of assets held by unconsolidated VIEs using the most current information available. For VIEs that obtain exposure to assets synthetically through derivative instruments, the remaining notional amount of the derivative is included in the asset balance. “Carrying value” is the amount in our consolidated balance sheet related to our involvement with the unconsolidated VIEs. “Maximum exposure to loss” from our involvement with off-balance sheet entities, which is a required disclosure under GAAP, is determined as the carrying value of our involvement with off-balance sheet (unconsolidated) VIEs plus the remaining undrawn liquidity and lending commitments, the notional amount of net written derivative contracts, and generally the notional amount of, or stressed loss estimate for, other commitments and guarantees. It represents estimated loss that would be incurred under severe, hypothetical circumstances, for which we believe the possibility is extremely remote, such as where the value of our interests and any associated collateral declines to zero, without any consideration of recovery or offset from any economic hedges. Accordingly, this required disclosure is not an indication of expected loss.

For complete descriptions of our types of transactions with unconsolidated VIEs with which we have a significant continuing involvement, but we are not the primary beneficiary, see Note 9 (Securitizations and Variable Interest Entities) in our 2018 Form 10-K.

INVESTMENT FUNDS We voluntarily waived a portion of our management fees for certain money market funds that are

exempt from the consolidation analysis to ensure the funds maintained a minimum level of daily net investment income. The amount of fees waived in the second quarter and first half of 2019 was $10 million and $20 million, respectively, compared with $12 million and $25 million, respectively, in the same periods of 2018.

TRUST PREFERRED SECURITIES  VIEs that we wholly own issue debt securities or preferred equity to third party investors. All of the proceeds of the issuance are invested in debt securities or preferred equity that we issue to the VIEs. The VIEs’ operations and cash flows relate only to the issuance, administration and repayment of the securities held by third parties. We do not consolidate these VIEs because the sole assets of the VIEs are receivables from us, even though we own all of the voting equity shares of the VIEs, have fully guaranteed the obligations of the VIEs and may have the right to redeem the third party securities under certain circumstances. In our consolidated balance sheet we reported the debt securities issued to the VIEs as long-term junior subordinated debt with a carrying value of $2.1 billion and $2.0 billion at June 30, 2019 and December 31, 2018, respectively, and the preferred equity securities issued to the VIEs as preferred stock with a carrying value of $2.5 billion at both dates. These VIEs are not included in the preceding table.

Loan Sales and Securitization Activity

We periodically transfer consumer and CRE loans and other types of financial assets in securitization and whole loan sale

transactions. We typically retain the servicing rights from these sales and may continue to hold other beneficial interests in the transferred financial assets. We may also provide liquidity to investors in the beneficial interests and credit enhancements in the form of standby letters of credit. Through these transfers we may be exposed to liability under limited amounts of recourse as

well as standard representations and warranties we make to purchasers and issuers. Table 10.3 presents the cash flows for our transfers accounted for as sales in which we have continuing involvement with the transferred financial assets.

Table 10.3: Cash Flows From Sales and Securitization Activity

	Mortgage loans
(in millions)	2019			2018
Quarter ended June 30,
Proceeds from securitizations and whole loan sales	$	39,697		51,990
Fees from servicing rights retained	786			830
Cash flows from other interests held (1)	133			168
Repurchases of assets/loss reimbursements (2):
Non-agency securitizations and whole loan transactions	1			1
Agency securitizations (3)	27			19
Servicing advances, net of repayments	(54		)	(7	)
Six months ended June 30,
Proceeds from securitizations and whole loan sales	$	76,204		102,577
Fees from servicing rights retained	1,566			1,675
Cash flows from other interests held (1)	244			353
Repurchases of assets/loss reimbursements (2):
Non-agency securitizations and whole loan transactions	1			2
Agency securitizations (3)	44			52
Servicing advances, net of repayments	(93		)	(43	)

(1) Cash flows from other interests held include principal and interest payments received on retained bonds and excess cash flows received on interest-only strips. We also received $1 million in both the second quarter and first half of 2018 related to other financial assets.

(2) Consists of cash paid to repurchase loans from investors and cash paid to investors to reimburse them for losses on individual loans that are already liquidated.

(3) Represent loans repurchased from GNMA, FNMA, and FHLMC under representation and warranty provisions included in our loan sales contracts. Second quarter and first half of 2019 exclude $1.3 billion and $3.2 billion, respectively, in delinquent insured/guaranteed loans that we service and have exercised our option to purchase out of GNMA pools, compared with $1.8 billion and $4.7 billion, respectively, in the same periods of 2018. These loans are predominantly insured by the FHA or guaranteed by the VA.

In the second quarter and first half of 2019, we recognized net gains of $119 million and $180 million, respectively, from transfers accounted for as sales of financial assets, in which we have continuing involvement with the transferred assets, compared with $54 million and $112 million, respectively, in the same periods of 2018. Net gains recognized in the second quarter and first half of 2018 were revised from the amounts previously reported to exclude transfers for which we do not have continuing involvement. These net gains predominantly relate to commercial mortgage securitizations, and residential mortgage securitizations where the loans were not already carried at fair value.

Sales with continuing involvement during the second quarter and first half of 2019 and 2018 largely related to securitizations of residential mortgages that are sold to the government-sponsored entities (GSEs), including FNMA, FHLMC and GNMA (conforming residential mortgage securitizations). During the second quarter and first half of 2019, we transferred $36.7 billion and $70.8 billion, respectively, in fair value of residential mortgages to unconsolidated VIEs and third-party investors and recorded the transfers as sales, compared with $47.7 billion and $95.0 billion, respectively, in the same periods of 2018. Substantially all of these transfers did not result in a gain or loss because the loans were already carried at fair value. In connection with all of these transfers, in the first half of 2019, we recorded a $707 million servicing asset, measured at fair value using a Level 3 measurement technique, securities of $3.4 billion, classified as Level 2, and a $8 million liability for repurchase losses which reflects management’s estimate of probable losses related to various representations and warranties for the loans

transferred, initially measured at fair value. In the first half of 2018, we recorded a $988 million servicing asset, securities of $1.8 billion, and a $7 million liability.

Table 10.4 presents the key weighted-average assumptions we used to measure residential mortgage servicing rights at the date of securitization.

Table 10.4: Residential Mortgage Servicing Rights

	Residential mortgage servicing rights
	2019			2018
Quarter ended June 30,
Prepayment speed (1)	13.5		%	10.7
Discount rate	7.5			7.4
Cost to service ($ per loan) (2)	$	121		146
Six months ended June 30,
Prepayment speed (1)	13.5		%	10.1
Discount rate	7.7			7.4
Cost to service ($ per loan) (2)	$	109		132

(1) The prepayment speed assumption for residential mortgage servicing rights includes a blend of prepayment speeds and default rates. Prepayment speed assumptions are influenced by mortgage interest rate inputs as well as our estimation of drivers of borrower behavior.

(2) Includes costs to service and unreimbursed foreclosure costs, which can vary period to period depending on the mix of modified government-guaranteed loans sold to GNMA.

During the second quarter and first half of 2019, we transferred $3.4 billion and $6.1 billion, respectively, in carrying value of commercial mortgages to unconsolidated VIEs and third-party investors and recorded the transfers as sales, compared

with $4.4 billion and $7.5 billion, respectively, in the same periods of 2018. These transfers resulted in gains of $74 million and $121 million in the second quarter and first half of 2019, respectively, because the loans were carried at LOCOM, compared with gains of $60 million and $129 million in the same periods of 2018. In connection with these transfers, in the first half of 2019, we recorded a servicing asset of $59 million, initially measured at fair value using a Level 3 measurement technique, and no securities. In the first half of 2018, we recorded a servicing asset of $73 million and securities of $208 million.

Retained Interests from Unconsolidated VIEs

Table 10.5 provides key economic assumptions and the sensitivity of the current fair value of residential mortgage servicing rights and other interests held related to unconsolidated VIEs to

immediate adverse changes in those assumptions. “Other interests held” relate to residential and commercial mortgage loan securitizations. Residential mortgage-backed securities retained in securitizations issued through GSEs, such as FNMA, FHLMC and GNMA, are excluded from the table because these securities have a remote risk of credit loss due to the GSE guarantee. These securities also have economic characteristics similar to GSE mortgage-backed securities that we purchase, which are not included in the table. Subordinated interests include only those bonds whose credit rating was below AAA by a major rating agency at issuance. Senior interests include only those bonds whose credit rating was AAA by a major rating agency at issuance. The information presented excludes trading positions held in inventory.

Table 10.5: Retained Interests from Unconsolidated VIEs

				Other interests held
	Residential mortgage servicing rights (1)			Interest-only strips	Commercial
($ in millions, except cost to service amounts)					Subordinated bonds			Senior bonds
Fair value of interests held at June 30, 2019	$	12,096		14	706			302
Expected weighted-average life (in years)	5.6			3.4	7.2			5.3
Key economic assumptions:
Prepayment speed assumption (2)	12.2		%	18.8
Decrease in fair value from:
10% adverse change	$	526		1
25% adverse change	1,239			1
Discount rate assumption	7.4		%	13.9	3.5			2.8
Decrease in fair value from:
100 basis point increase	$	499		—	41			14
200 basis point increase	954			—	79			26
Cost to service assumption ($ per loan)	104
Decrease in fair value from:
10% adverse change	283
25% adverse change	707
Credit loss assumption					4.4		%	—
Decrease in fair value from:
10% higher losses					$	2		—
25% higher losses					5			—
Fair value of interests held at December 31, 2018	$	14,649		16	668			309
Expected weighted-average life (in years)	6.5			3.6	7.0			5.7
Key economic assumptions:
Prepayment speed assumption (2)	9.9		%	17.7
Decrease in fair value from:
10% adverse change	$	530		1
25% adverse change	1,301			1
Discount rate assumption	8.1		%	14.5	4.3			3.7
Decrease in fair value from:
100 basis point increase	$	615		—	37			14
200 basis point increase	1,176			1	72			28
Cost to service assumption ($ per loan)	106
Decrease in fair value from:
10% adverse change	316
25% adverse change	787
Credit loss assumption					5.1		%	—
Decrease in fair value from:
10% higher losses					$	2		—
25% higher losses					5			—

(1) See narrative following this table for a discussion of commercial mortgage servicing rights.

(2) The prepayment speed assumption for residential mortgage servicing rights includes a blend of prepayment speeds and default rates. Prepayment speed assumptions are influenced by mortgage interest rate inputs as well as our estimation of drivers of borrower behavior.

In addition to residential MSRs included in the previous table, we have a small portfolio of commercial MSRs with a fair value of $1.9 billion and $2.3 billion at June 30, 2019, and December 31, 2018, respectively. The nature of our commercial MSRs, which are carried at LOCOM, is different from our residential MSRs. Prepayment activity on serviced loans does not significantly impact the value of commercial MSRs because, unlike residential mortgages, commercial mortgages experience

significantly lower prepayments due to certain contractual restrictions, impacting the borrower’s ability to prepay the mortgage. Similarly, prepayment speed assumptions do not significantly impact the value of the commercial mortgage securitization bonds. Additionally, for our commercial MSR portfolio, we are typically master/primary servicer, but not the special servicer, who is separately responsible for the servicing and workout of delinquent and foreclosed loans. It is the special

servicer, similar to our role as servicer of residential mortgage loans, who is affected by higher servicing and foreclosure costs due to an increase in delinquent and foreclosed loans. Accordingly, prepayment speeds and costs to service are not key assumptions for commercial MSRs as they do not significantly impact the valuation. The primary economic driver impacting the fair value of our commercial MSRs is forward interest rates, which are derived from market observable yield curves used to price capital markets instruments. Market interest rates significantly affect interest earned on custodial deposit balances. The sensitivity of the current fair value to an immediate adverse 25% change in the assumption about interest earned on deposit balances at June 30, 2019, and December 31, 2018, results in a decrease in fair value of $231 million and $320 million, respectively. See Note 11 (Mortgage Banking Activities) for further information on our commercial MSRs.

The sensitivities in the preceding paragraph and table are hypothetical and caution should be exercised when relying on this data. Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in value may not be

linear. Also, the effect of a variation in a particular assumption on the value of the other interests held is calculated independently without changing any other assumptions. In reality, changes in one factor may result in changes in others (for example, changes in prepayment speed estimates could result in changes in the credit losses), which might magnify or counteract the sensitivities.

Off-Balance Sheet Loans

Table 10.6 presents information about the principal balances of off-balance sheet loans that were sold or securitized, including residential mortgage loans sold to FNMA, FHLMC, GNMA and other investors, for which we have some form of continuing involvement (including servicer). Delinquent loans include loans 90 days or more past due and loans in bankruptcy, regardless of delinquency status. For loans sold or securitized where servicing is our only form of continuing involvement, we would only experience a loss if we were required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with our loan sale or servicing contracts.

Table 10.6: Off-Balance Sheet Loans Sold or Securitized

						Net charge-offs
	Total loans			Delinquent loans and foreclosed assets (1)		Six months ended Jun 30,
(in millions)	Jun 30, 2019		Dec 31, 2018	Jun 30, 2019	Dec 31, 2018	2019	2018
Commercial:
Real estate mortgage	$	107,239	105,173	955	1,008	89	151
Total commercial	107,239		105,173	955	1,008	89	151
Consumer:
Real estate 1-4 family first mortgage	1,045,840		1,097,128	7,650	8,947	110	250
Total consumer	1,045,840		1,097,128	7,650	8,947	110	250
Total off-balance sheet sold or securitized loans (2)	$	1,153,079	1,202,301	8,605	9,955	199	401

(1) Includes $583 million and $675 million of commercial foreclosed assets and $507 million and $582 million of consumer foreclosed assets at June 30, 2019, and December 31, 2018, respectively.

(2) At June 30, 2019, and December 31, 2018, the table includes total loans of $1.1 trillion at both dates, delinquent loans of $5.7 billion and $6.4 billion, and foreclosed assets of $364 million and $442 million, respectively, for FNMA, FHLMC and GNMA. Net charge-offs exclude loans sold to FNMA, FHLMC and GNMA as we do not service or manage the underlying real estate upon foreclosure and, as such, do not have access to net charge-off information.

Transactions with Consolidated VIEs and Secured Borrowings

Table 10.7 presents a summary of financial assets and liabilities for asset transfers accounted for as secured borrowings and involvements with consolidated VIEs. Carrying values of “Assets” are presented using GAAP measurement methods, which may include fair value, credit impairment or other adjustments, and

therefore in some instances will differ from “Total VIE assets.” For VIEs that obtain exposure synthetically through derivative instruments, the remaining notional amount of the derivative is included in “Total VIE assets.” On the consolidated balance sheet, we separately disclose the consolidated assets of certain VIEs that can only be used to settle the liabilities of those VIEs.

Table 10.7: Transactions with Consolidated VIEs and Secured Borrowings

			Carrying value
(in millions)	Total VIE assets		Assets	Liabilities		Noncontrolling interests		Net assets
June 30, 2019
Secured borrowings:
Municipal tender option bond securitizations	$	263	270	(265	)	—		5
Residential mortgage securitizations	87		87	(85	)	—		2
Total secured borrowings	350		357	(350	)	—		7
Consolidated VIEs:
Commercial and industrial loans and leases	7,742		7,728	(490	)	(13	)	7,225
Nonconforming residential mortgage loan securitizations	1,475		1,288	(452	)	—		836
Commercial real estate loans	4,794		4,794	—		—		4,794
Investment funds	194		194	(6	)	(24	)	164
Other	6		6	(2	)	(4	)	—
Total consolidated VIEs	14,211		14,010	(950	)	(41	)	13,019
Total secured borrowings and consolidated VIEs	$	14,561	14,367	(1,300	)	(41	)	13,026
December 31, 2018
Secured borrowings:
Municipal tender option bond securitizations	$	627	523	(501	)	—		22
Residential mortgage securitizations	95		94	(93	)	—		1
Total secured borrowings	722		617	(594	)	—		23
Consolidated VIEs:
Commercial and industrial loans and leases	8,215		8,204	(477	)	(14	)	7,713
Nonconforming residential mortgage loan securitizations	1,947		1,732	(521	)	—		1,211
Commercial real estate loans	3,957		3,957	—		—		3,957
Investment funds	155		155	(5	)	(15	)	135
Other	14		14	(4	)	(5	)	5
Total consolidated VIEs	14,288		14,062	(1,007	)	(34	)	13,021
Total secured borrowings and consolidated VIEs	$	15,010	14,679	(1,601	)	(34	)	13,044

For complete descriptions of our accounting for transfers accounted for as secured borrowings and involvements with consolidated VIEs, see Note 9 (Securitizations and Variable Interest Entities) in our 2018 Form 10-K.