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Derivatives (Tables)
6 Months Ended
Jun. 30, 2013
Derivatives  
Summary of gross notional amount of derivatives

 

 

 

 

June 30,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(In millions)

 

Notional amounts:

 

 

 

 

 

Interest rate lock commitments

 

$

4,375

 

$

4,993

 

Forward delivery commitments

 

11,670

 

12,303

 

Option contracts

 

660

 

1,070

 

Interest rate contracts

 

692

 

614

 

Convertible note-related agreements(1)

 

—

 

—

 

MSR-related agreements

 

1,565

 

3,915

 

 

(1)              The notional of derivative instruments underlying the Convertible-note related agreements is 9.6881 million shares of the Company’s Common stock.  These instruments relate to the issuance of the Convertible notes due 2014.

Schedule of outstanding derivative instruments on a gross basis and the application of counterparty and collateral netting

 

 

 

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Assets

 

Offsetting
Payables

 

Cash Collateral
Received

 

Net Amount

 

 

 

(In millions)

 

ASSETS

 

 

 

 

 

 

 

 

 

Subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Forward delivery commitments

 

$

165

 

$

(127)

 

$

(37)

 

$

1

 

Option contracts

 

2

 

(2)

 

—

 

—

 

Derivative assets subject to netting

 

167

 

(129)

 

(37)

 

1

 

Not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

26

 

—

 

—

 

26

 

Forward delivery commitments

 

49

 

—

 

—

 

49

 

Option contracts

 

22

 

—

 

—

 

22

 

Interest rate contracts

 

2

 

—

 

—

 

2

 

Convertible note-related agreements

 

12

 

—

 

—

 

12

 

Derivative assets not subject to netting

 

111

 

—

 

—

 

111

 

Total derivative assets

 

$

278

 

$

(129)

 

$

(37)

 

$

112

 

 

 

 

Gross Liabilities

 

Offsetting
Receivables

 

Cash Collateral
Received

 

Net Amount

 

 

 

(In millions)

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Forward delivery commitments

 

$

57

 

$

(127)

 

$

84

 

$

14

 

Option contracts

 

—

 

(2)

 

4

 

2

 

Derivative liabilities subject to netting

 

57

 

(129)

 

88

 

16

 

Not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

37

 

—

 

—

 

37

 

Forward delivery commitments

 

6

 

—

 

—

 

6

 

Convertible note-related agreements

 

12

 

—

 

—

 

12

 

Derivative liabilities not subject to netting

 

55

 

—

 

—

 

55

 

Total derivative liabilities

 

$

112

 

$

(129)

 

$

88

 

$

71

 

 

 

 

December 31, 2012

 

 

 

Gross Assets

 

Offsetting
Payables

 

Cash Collateral
(Received) Paid

 

Net Amount

 

 

 

(In millions)

 

ASSETS

 

 

 

 

 

 

 

 

 

Subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Forward delivery commitments

 

$

10

 

$

(12)

 

$

5

 

$

3

 

MSR-related agreements

 

5

 

(4)

 

(1)

 

—

 

Derivative assets subject to netting

 

15

 

(16)

 

4

 

3

 

Not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

140

 

—

 

—

 

140

 

Forward delivery commitments

 

5

 

—

 

—

 

5

 

Option contracts

 

2

 

—

 

—

 

2

 

Interest rate contracts

 

1

 

—

 

—

 

1

 

Convertible note-related agreements

 

27

 

—

 

—

 

27

 

Derivative assets not subject to netting

 

175

 

—

 

—

 

175

 

Total derivative assets

 

$

190

 

$

(16)

 

$

4

 

$

178

 

 

 

 

Gross Liabilities

 

Offsetting
Receivables

 

Cash Collateral
(Paid) Received

 

Net Amount

 

 

 

(In millions)

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Forward delivery commitments

 

$

14

 

$

(12)

 

$

(1)

 

$

1

 

MSR-related agreements

 

—

 

(4)

 

9

 

5

 

Derivative liabilities subject to netting

 

14

 

(16)

 

8

 

6

 

Not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

1

 

—

 

—

 

1

 

Forward delivery commitments

 

5

 

—

 

—

 

5

 

Convertible note-related agreements

 

27

 

—

 

—

 

27

 

Derivative liabilities not subject to netting

 

33

 

—

 

—

 

33

 

Total derivative liabilities

 

$

47

 

$

(16)

 

$

8

 

$

39

 

Schedule of gains (losses) recorded in the Consolidated Statements of Operations

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

(In millions)

 

Gain on mortgage loans, net:

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

$

67

 

$

374

 

$

269

 

$

760

 

Forward delivery commitments

 

185

 

(124)

 

239

 

(153)

 

Options contracts

 

20

 

(6)

 

18

 

(10)

 

Net derivative (loss) gain related to mortgage servicing rights:

 

 

 

 

 

 

 

 

 

MSR-related agreements

 

(1)

 

2

 

(17)

 

(3)

 

Fleet interest expense:

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

—

 

(1)

 

—

 

(1)

 

Foreign exchange contracts

 

—

 

1

 

—

 

1