Credit Risk (Tables)

6 Months Ended

Jun. 30, 2013

Credit Risk

Schedule of information regarding the total loan servicing portfolio

	June 30,			December 31,
	2013			2012
	(In millions)
Loan Servicing Portfolio Composition
Owned	$	135,351		$	142,930
Subserviced(1)	93,286			40,800
Total	$	228,637		$	183,730
Conventional loans	$	192,301		$	149,432
Government loans	30,211			29,842
Home equity lines of credit	6,125			4,456
Total	$	228,637		$	183,730
Weighted-average interest rate	4.2		%	4.3		%

(1) The total servicing portfolio increased during the three months ended June 30, 2013 due to the assumption of a new subservicing portfolio.   Excluding the subservicing portfolio assumed during the three months ended June 30, 2013, the Company’s total portfolio delinquency and foreclosure/real estate owned based on the number of loans were 3.84% and 2.01%, respectively and based on the unpaid principal balance were 2.97% and 1.79%, respectively.

Schedule of portfolio delinquency

	June 30, 2013				December 31, 2012
	Number of Loans		Unpaid Balance		Number of Loans		Unpaid Balance
Portfolio Delinquency(2)
30 days	2.58	%	2.03	%	2.45	%	1.93	%
60 days	0.75	%	0.60	%	0.64	%	0.52	%
90 or more days	1.04	%	0.95	%	0.80	%	0.70	%
Total(1)	4.37	%	3.58	%	3.89	%	3.15	%
Foreclosure/real estate owned(3)	2.49	%	2.44	%	2.05	%	1.92	%

(1) The total servicing portfolio increased during the three months ended June 30, 2013 due to the assumption of a new subservicing portfolio.   Excluding the subservicing portfolio assumed during the three months ended June 30, 2013, the Company’s total portfolio delinquency and foreclosure/real estate owned based on the number of loans were 3.84% and 2.01%, respectively and based on the unpaid principal balance were 2.97% and 1.79%, respectively.

(2) Represents portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio.

(3) As of June 30, 2013 and December 31, 2012, the total servicing portfolio included 25,978 and 17,329 of loans in foreclosure with an unpaid principal balance of $4.9 billion and $3.0 billion, respectively.   Excluding the subservicing portfolio assumed during the three months ended June 30, 2013, the Company’s total servicing portfolio included 16,080 of loans in foreclosure with an unpaid principal balance of $2.8 billion.

Summary of the activity in repurchase and foreclosure-related reserves

	Six Months Ended
	June 30,
	2013		2012
	(In millions)
Balance, beginning of period	$	191	$	127
Realized losses	(37)		(66)
Increase in reserves due to:
Changes in assumptions	26		104
New loan sales	11		10
Balance, end of period	$	191	$	175

Schedule of carrying values of the mortgage loans in foreclosure and real estate owned

	June 30,		December 31,
	2013		2012
	(In millions)
Mortgage loans in foreclosure(1)	$	176	$	148
Allowance for probable foreclosure losses	(25)		(28)
Mortgage loans in foreclosure, net	$	151	$	120
Real estate owned	$	75	$	76
Adjustment to value for real estate owned	(25)		(23)
Real estate owned, net	$	50	$	53

(1) Includes $93 million and $65 million of recoverable advances as of June 30, 2013 and December 31, 2012, respectively.

Schedule of the activity in the liability for reinsurance losses

	Six Months Ended
	June 30,
	2013		2012
	(In millions)
Balance, beginning of period	$	33	$	84
Realized losses(1)	(35)		(51)
Increase in liability for reinsurance losses	2		10
Balance, end of period	$	—	$	43

(1) Realized reinsurance losses for the six months ended June 30, 2013 and 2012 includes $28 million and $21 million, respectively, related to the release of reserves associated with the termination of inactive reinsurance agreements.