Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivatives

Summary of gross notional amount of derivatives

	September 30,		December 31,
	2013		2012
	(In millions)
Notional amounts:
Interest rate lock commitments	$	1,982	$	4,993
Forward delivery commitments	6,539		12,303
Option contracts	610		1,070
Interest rate contracts	715		614
Convertible note-related agreements(1)	—		—
MSR-related agreements	—		3,915

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(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

	September 30, 2013
	Gross Assets		Offsetting Payables		Cash Collateral Paid		Net Amount
	(In millions)
ASSETS
Subject to master netting arrangements:
Forward delivery commitments	$	22	$	(45)	$	24	$	1
Not subject to master netting arrangements:
Interest rate lock commitments	62		—		—		62
Forward delivery commitments	3		—		—		3
Option contracts	1		—		—		1
Interest rate contracts	2		—		—		2
Convertible note-related agreements	18		—		—		18
Derivative assets not subject to netting	86		—		—		86
Total derivative assets	$	108	$	(45)	$	24	$	87

	Gross Liabilities		Offsetting Receivables		Cash Collateral Paid		Net Amount
	(In millions)
LIABILITIES
Subject to master netting arrangements:
Forward delivery commitments	$	59	$	(45)	$	(10)	$	4
Not subject to master netting arrangements:
Forward delivery commitments	10		—		—		10
Convertible note-related agreements	18		—		—		18
Derivative liabilities not subject to netting	28		—		—		28
Total derivative liabilities	$	87	$	(45)	$	(10)	$	32

	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				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(In millions)
Gain on mortgage loans, net:
Interest rate lock commitments	$	136	$	425	$	405	$	1,185
Forward delivery commitments	(22)		(152)		217		(305)
Options contracts	(1)		(4)		17		(14)
Net derivative gain (loss) related to mortgage servicing rights:
MSR-related agreements	—		8		(17)		5
Fleet interest expense:
Interest rate contracts	(1)		—		(1)		(1)
Foreign exchange contracts	—		(2)		—		(1)