Segment Information
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information

Our operations are conducted through four operating segments: Mortgage Originations, Mortgage Servicing, Community Banking and Other, which includes the remaining reported activities. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. The operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationships of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Effective January 1, 2016, we reorganized our reportable segments to align with our new management reporting structure and to align with our long-term strategy. Prior period segment financial information has been recast to conform to the current presentation. Prior to the reorganization, representation and warranty reserves were reported in the Mortgage Servicing segment and the MSR asset and associated costs were reported in the Other segment. As a result of this change, representation and warranty reserves, as well as the MSR asset and associated costs are now reported in the Mortgage Originations segment.

The Mortgage Originations segment originates, acquires and sells one-to-four family residential mortgage loans. The origination and acquisition of mortgage loans comprises the majority of the lending activity. Mortgage loans are originated through home loan centers, national call centers, the Internet and unaffiliated banks and mortgage banking and brokerage companies, where the net interest income and the gains from sales associated with these loans are recognized in the Mortgage Originations segment.

The Mortgage Servicing segment services and sub-services mortgage loans, on a fee basis, for others. Also, the Mortgage Servicing segment services, on a fee basis, residential mortgages held-for-investment by the Community Banking segment and mortgage servicing rights held by the Mortgage Originations segment. The Mortgage Servicing segment may also collect ancillary fees, such as late fees, and earns income through the use of noninterest-bearing escrows.

The Community Banking segment originates loans, provides deposits and fee based services to consumer, business, and mortgage lending customers through its Branch Banking, Business Banking and Commercial Banking, Government Banking, Warehouse Lending and Held-for-Investment Portfolio groups. Products offered through these teams include checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, commercial loans, home builder finance loans and warehouse lines of credit. Other financial services available to consumer and commercial customers include lines of credit, revolving credit, customized treasury management solutions, equipment leasing, inventory, and accounts receivable lending and capital markets services such as interest rate risk protection products.

The Other segment includes the treasury functions, funding revenue associated with stockholders' equity, the impact of interest rate risk management, the impact of balance sheet funding activities, and miscellaneous other expenses of a corporate nature. Treasury functions include administering the investment securities portfolios, balance sheet funding, and interest rate risk management. In addition, the Other segment includes revenue and expenses related to treasury and corporate assets and liabilities and equity not directly assigned or allocated to the Mortgage Originations, Mortgage Servicing or Community Banking operating segments.
    
Revenues are comprised of net interest income (before the provision (benefit) for loan losses) and noninterest income. Noninterest expenses are fully allocated to each operating segment. Allocation methodologies may be subject to periodic adjustment as the internal management accounting system is revised and the business or product lines within the segments change.

The following tables present financial information by business segment for the periods indicated:
 
Three Months Ended September 30, 2016
 
Mortgage Originations
 
Mortgage Servicing
 
Community Banking
 
Other
 
Total
Summary of Operations
(Dollars in millions)
Net interest income
$
21

 
$
10

 
$
54

 
$
(5
)
 
$
80

Net gain on loan sales
95

 
—

 
(1
)
 
—

 
94

Representation and warranty benefit
6

 
—

 
—

 
—

 
6

Other noninterest income
4

 
13

 
8

 
31

 
56

Total net interest income and noninterest income
126

 
23

 
61

 
26

 
236

(Provision) benefit for loan losses
—

 
—

 
(7
)
 
—

 
(7
)
Asset resolution
—

 
(2
)
 
—

 
—

 
(2
)
Depreciation and amortization expense
(2
)
 
—

 
(1
)
 
(5
)
 
(8
)
Other noninterest expense
(64
)
 
(25
)
 
(43
)
 
—

 
(132
)
Total noninterest expense
(66
)
 
(27
)
 
(44
)
 
(5
)
 
(142
)
Income (loss) before income taxes
60

 
(4
)
 
10

 
21

 
87

Provision for income taxes
—

 
—

 
—

 
30

 
30

Net income (loss)
$
60

 
$
(4
)
 
$
10

 
$
(9
)
 
$
57

Intersegment revenue
$
(1
)
 
$
5

 
$
—

 
$
(4
)
 
$
—

 
 
 
 
 
 
 
 
 
 
Average balances
 
 
 
 
 
 
 
 
 
Loans held-for-sale
$
3,400

 
$
—

 
$
16

 
$
—

 
$
3,416

Loans with government guarantees
—

 
432

 
—

 
—

 
432

Loans held-for-investment
5

 
—

 
5,843

 
—

 
5,848

Total assets
4,238

 
623

 
5,904

 
3,383

 
14,148

Deposits
—

 
1,853

 
7,273

 
—

 
9,126

 
Three Months Ended September 30, 2015
 
Mortgage Originations
 
Mortgage Servicing
 
Community Banking
 
Other
 
Total
Summary of Operations
(Dollars in millions)
Net interest income
$
18

 
$
3

 
$
45

 
$
7

 
$
73

Net gain on loan sales
72

 
—

 
(4
)
 
—

 
68

Representation and warranty benefit
6

 
—

 
—

 
—

 
6

Other noninterest income
26

 
15

 
11

 
2

 
54

Total net interest income and noninterest income
122

 
18

 
52

 
9

 
201

(Provision) benefit for loan losses
—

 
—

 
1

 
—

 
1

Depreciation and amortization expense
(1
)
 
(1
)
 
(1
)
 
(3
)
 
(6
)
Other noninterest expense
(56
)
 
(27
)
 
(39
)
 
(3
)
 
(125
)
Total noninterest expense
(57
)
 
(28
)
 
(40
)
 
(6
)
 
(131
)
Income (loss) before income taxes
65

 
(10
)
 
13

 
3

 
71

Provision for income taxes
—

 
—

 
—

 
24

 
24

Net income (loss)
$
65

 
$
(10
)
 
$
13

 
$
(21
)
 
$
47

Intersegment revenue
$
3

 
$
5

 
$
(4
)
 
$
(4
)
 
$
—

 
 
 
 
 
 
 
 
 
 
Average balances
 
 
 
 
 
 
 
 
 
Loans held-for-sale
$
2,179

 
$
—

 
$
21

 
$
—

 
$
2,200

Loans with government guarantees
—

 
547

 
—

 
—

 
547

Loans held-for-investment
4

 
—

 
5,348

 
60

 
5,412

Total assets
2,709

 
860

 
5,336

 
3,400

 
12,305

Deposits
—

 
1,487

 
6,773

 
—

 
8,260


 
Nine Months Ended September 30, 2016
 
Mortgage Origination
 
Mortgage Servicing
 
Community Banking
 
Other
 
Total
Summary of Operations
(Dollars in millions)
Net interest income
$
61

 
$
23

 
$
150

 
$
2

 
$
236

Net gain (loss) on loan sales
251

 
—

 
8

 
—

 
259

Representation and warranty benefit
12

 
—

 
—

 
—

 
12

Other noninterest income (loss)
17

 
39

 
21

 
41

 
118

Total net interest income and noninterest income
341

 
62

 
179

 
43

 
625

(Provision) benefit for loan losses
—

 
—

 
9

 
—

 
9

Asset resolution
—

 
(6
)
 
—

 
—

 
(6
)
Depreciation and amortization expense
(4
)
 
(2
)
 
(5
)
 
(12
)
 
(23
)
Other noninterest expense
(182
)
 
(70
)
 
(131
)
 
(6
)
 
(389
)
Total noninterest expense
(186
)
 
(78
)
 
(136
)
 
(18
)
 
(418
)
Income (loss) before income taxes
155

 
(16
)
 
52

 
25

 
216

Provision for income taxes
—

 
—

 
—

 
73

 
73

Net income (loss)
$
155

 
$
(16
)
 
$
52

 
$
(48
)
 
$
143

Intersegment revenue
$
1

 
$
16

 
$
(1
)
 
$
(16
)
 
$
—

 
 
 
 
 
 
 
 
 
 
Average balances
 
 
 
 
 
 
 
 
 
Loans held-for-sale
$
2,988

 
$
—

 
$
83

 
$
—

 
$
3,071

Loans with government guarantees
—

 
450

 
—

 
—

 
450

Loans held-for-investment
6

 
—

 
5,689

 
—

 
5,695

Total assets
3,688

 
676

 
5,798

 
3,549

 
13,711

Deposits
—

 
1,523

 
7,080

 
—

 
8,603

 
Nine Months Ended September 30, 2015
 
Mortgage Origination
 
Mortgage Servicing
 
Community Banking
 
Other
 
Total
Summary of Operations
(Dollars in millions)
Net interest income
$
52

 
$
10

 
$
126

 
$
23

 
$
211

Net gain (loss) on loan sales
255

 
—

 
(13
)
 
—

 
242

Representation and warranty benefit
13

 
—

 
—

 
—

 
13

Other noninterest income
60

 
42

 
19

 
(3
)
 
118

Total net interest income and noninterest income
380

 
52

 
132

 
20

 
584

(Provision) benefit for loan losses
—

 
—

 
18

 
—

 
18

Asset resolution
—

 
(12
)
 
(1
)
 
—

 
(13
)
Depreciation and amortization expense
(2
)
 
(2
)
 
(4
)
 
(9
)
 
(17
)
Other noninterest expense
(174
)
 
(80
)
 
(116
)
 
(7
)
 
(377
)
Total noninterest expense
(176
)
 
(94
)
 
(121
)
 
(16
)
 
(407
)
Income (loss) before income taxes
204

 
(42
)
 
29

 
4

 
195

Provision for income taxes
—

 
—

 
—

 
70

 
70

Net income (loss)
$
204

 
$
(42
)
 
$
29

 
$
(66
)
 
$
125

Intersegment revenue
$
9

 
$
13

 
$
(13
)
 
$
(9
)
 
$
—

 
 
 
 
 
 
 
 
 
 
Average balances
 
 
 
 
 
 
 
 
 
Loans held-for-sale
$
2,052

 
$
—

 
$
36

 
$
—

 
$
2,088

Loans with government guarantees
—

 
679

 
—

 
—

 
679

Loans held-for-investment
3

 
—

 
4,786

 
96

 
4,885

Total assets
2,555

 
1,004

 
4,753

 
3,351

 
11,663

Deposits
—

 
1,189

 
6,602

 
—

 
7,791