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Loans and Loans Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2017
Loans Receivables [Abstract]  
Loans by Category
Our loans by category are summarized as follows:
December 31,
 
 
in millions
2017
2016
Commercial and industrial (a)
$
41,859

$
39,768

Commercial real estate:
 
 
Commercial mortgage
14,088

15,111

Construction
1,960

2,345

Total commercial real estate loans
16,048

17,456

Commercial lease financing (b)
4,826

4,685

Total commercial loans
62,733

61,909

Residential — prime loans:
 
 
Real estate — residential mortgage
5,483

5,547

Home equity loans
12,028

12,674

Total residential — prime loans
17,511

18,221

Consumer direct loans
1,794

1,788

Credit cards
1,106

1,111

Consumer indirect loans
3,261

3,009

Total consumer loans
23,672

24,129

Total loans (c), (d)
$
86,405

$
86,038

 
 
 
(a)
Loan balances include $119 million and $116 million of commercial credit card balances at December 31, 2017, and December 31, 2016, respectively.
(b)
Commercial lease financing includes receivables of $24 million and $68 million held as collateral for a secured borrowing at December 31, 2017, and December 31, 2016, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 20 (“Long-Term Debt”).
(c)
At December 31, 2017, total loans include purchased loans of $15.4 billion, of which $738 million were purchased credit impaired. At December 31, 2016, total loans include purchased loans of $21.0 billion, of which $865 million were purchased credit impaired.
(d)
Total loans exclude loans in the amount of $1.3 billion at December 31, 2017, and $1.6 billion at December 31, 2016, related to the discontinued operations of the education lending business.
Loans Held for Sale
Our loans held for sale by category are summarized as follows:
 December 31,
 in millions
2017
2016
Commercial and industrial
$
139

$
19

Real estate — commercial mortgage
897

1,022

Real estate — construction
—

1

Real estate — residential mortgage (a)
71

62

Total loans held for sale
$
1,107

$
1,104

 
 
 

(a)
Real estate — residential mortgage loans held for sale at fair value at December 31, 2017. The fair value option was elected for real estate — residential mortgage loans held for sale during the third quarter of 2016 with the First Niagara acquisition. The contractual amount due on these loans totaled $71 million at December 31, 2017 and $62 million at December 31, 2016. Changes in fair value are recorded in "Consumer mortgage income" on the income statement. Additional information regarding residential mortgage loans held for sale fair value methodology is provided in Note 7 (“Fair Value Measurements”).
Summary of Changes in Loans Held for Sale
Our summary of changes in loans held for sale follows:
Year ended December 31,
 
 
in millions
2017
2016
Balance at beginning of the period
$
1,104

$
639

Purchases
—

48

New originations
11,860

8,356

Transfers from (to) held to maturity, net
(63
)
35

Loan sales
(11,780
)
(7,979
)
Loan draws (payments), net
(14
)
5

Balance at end of period (a)
$
1,107

$
1,104

 
 
 

(a)
Total loans held for sale include Real Estate - residential mortgage loans held for sale at fair value of $71 million at December 31, 2017.
Composition of Net Investment in Direct Financing Leases
The composition of the net investment in direct financing leases is as follows:
December 31,
 
 
in millions
2017
2016
Direct financing lease receivables
$
3,727

$
3,468

Unearned income
(323
)
(278
)
Unguaranteed residual value
382

316

Deferred fees and costs
19

16

Net investment in direct financing leases
$
3,805

$
3,522