Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The following table summarizes Income tax (benefit) expense:



	Year Ended December 31,
	2015			2014			2013
	(In millions)
Current:
Federal	$	—		$	(461	)	$	—
State	(1		)	(31		)	(5		)
Income tax contingencies:
Change in income tax contingencies	—			6			—
Interest and penalties	—			1			—
Total current income tax benefit	(1		)	(485		)	(5		)

Deferred:
Federal	(79		)	373			40
State	(2		)	13			7
Total deferred income tax (benefit) expense	(81		)	386			47
Income tax (benefit) expense	$	(82	)	$	(99	)	$	42

Summary of components of deferred tax assets and liabilities

The following table summarizes the significant components of deferred tax assets and liabilities:



	December 31,
	2015			2014
	(In millions)
Deferred tax assets:
Accrued liabilities, provisions for losses and deferred income	$	102		$	72
Federal loss carryforwards and credits	24			—
State loss carryforwards and credits	39			32
Other	—			5
Gross deferred tax assets	165			109
Valuation allowance	(46		)	(35		)
Deferred tax assets, net of valuation allowance	119			74

Deferred tax liabilities:
Mortgage servicing rights	297			336
Other	4			—
Deferred tax liabilities	301			336
Net deferred tax liability	$	182		$	262

Schedule of reconciliation of total income taxes from amount that would be computed by applying the U.S. federal statutory rate

Total income taxes differ from the amount that would be computed by applying the U.S. federal statutory rate as follows:



	Year Ended December 31,
	2015			2014			2013
	(In millions)
(Loss) income from continuing operations before income taxes	$	(213	)	$	(284	)	$	140
Statutory federal income tax rate	35		%	35		%	35		%
Income taxes computed at statutory federal rate	$	(75	)	$	(99	)	$	49
State and local income taxes, net of federal tax benefits	(14		)	(12		)	7
Liabilities for income tax contingencies	—			7			—
Changes in rate and apportionment factors	3			1			(5		)
Changes in valuation allowance	10			5			2
Nondeductible expenses	6			—			1
Noncontrolling interest	(5		)	(2		)	(11		)
Other	(7		)	1			(1		)
Income tax (benefit) expense	$	(82	)	$	(99	)	$	42
Effective tax rate	(38.4		)%	(35.1		)%	29.8		%

Summary of activity in the liability for unrecognized income tax benefits

Activity related to the Company's unrecognized income tax benefits (including the liability for potential payment of interest and penalties) consisted of:



	Year Ended December 31,
	2015		2014		2013
	(In millions)
Balance, beginning of period	$	11	$	4	$	4
Activity related to tax positions taken during the current year	—		7		—
Activity related to tax positions taken during prior years	—		—		—
Balance, end of period	$	11	$	11	$	4