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Finance Receivables (Tables)
12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Schedule of components of net finance receivables by type
Components of net finance receivables held for investment by type were as follows:
(dollars in millions)
 
Personal
Loans
 
SpringCastle
Portfolio
 
Real Estate
Loans
 
Retail
Sales Finance
 
Total
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Gross receivables *
 
$
15,405

 
$

 
$
142

 
$
12

 
$
15,559

Unearned finance charges and points and fees
 
(2,062
)
 

 
1

 
(1
)
 
(2,062
)
Accrued finance charges
 
151

 

 
1

 

 
152

Deferred origination costs
 
83

 

 

 

 
83

Total
 
$
13,577

 
$

 
$
144

 
$
11

 
$
13,732

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Gross receivables *
 
$
15,353

 
$
1,672

 
$
534

 
$
25

 
$
17,584

Unearned finance charges and points and fees
 
(2,261
)
 

 

 
(2
)
 
(2,263
)
Accrued finance charges
 
147

 
31

 
4

 

 
182

Deferred origination costs
 
56

 

 

 

 
56

Total
 
$
13,295

 
$
1,703

 
$
538

 
$
23

 
$
15,559

                                      
*
Gross receivables are defined as follows:

Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value;

Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition (as defined below) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts;

Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and

TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable.
Schedule of largest concentrations of net finance receivables
The largest concentrations of net finance receivables were as follows:
December 31,
 
2016
 
2015 *
(dollars in millions)
 
Amount
 
Percent
 
Amount
 
Percent
 
 
 
 
 
 
 
 
 
Texas
 
$
1,196

 
9
%
 
$
1,202

 
8
%
North Carolina
 
1,112

 
8

 
1,370

 
9

Pennsylvania
 
825

 
6

 
961

 
6

California
 
813

 
6

 
939

 
6

Ohio
 
660

 
5

 
780

 
5

Virginia
 
623

 
5

 
714

 
5

Illinois
 
599

 
4

 
670

 
4

Georgia
 
586

 
4

 
660

 
4

Florida
 
579

 
4

 
657

 
4

Indiana
 
539

 
4

 
584

 
4

South Carolina
 
508

 
4

 
571

 
4

Other
 
5,692

 
41

 
6,451

 
41

Total
 
$
13,732

 
100
%
 
$
15,559

 
100
%
                                      
*
December 31, 2015 concentrations of net finance receivables are presented in the order of December 31, 2016 state concentrations.
Summary of net finance receivables by type by days delinquent
The following is a summary of net finance receivables held for investment by type and by number of days delinquent:
(dollars in millions)
 
Personal
Loans
 
SpringCastle
Portfolio
 
Real Estate
Loans
 
Retail
Sales Finance
 
Total
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Net finance receivables:
 
 
 
 
 
 
 
 
 
 
Performing
 
 
 
 
 
 
 
 
 
 
Current
 
$
12,920

 
$

 
$
102

 
$
11

 
$
13,033

30-59 days past due
 
174

 

 
9

 

 
183

60-89 days past due
 
130

 

 
4

 

 
134

Total performing
 
13,224

 

 
115

 
11

 
13,350

Nonperforming
 
 
 
 
 
 
 
 
 
 
90-179 days past due
 
349

 

 
8

 

 
357

180 days or more past due
 
4

 

 
21

 

 
25

Total nonperforming
 
353

 

 
29

 

 
382

Total
 
$
13,577

 
$

 
$
144

 
$
11

 
$
13,732

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Net finance receivables:
 
 
 
 
 
 
 
 
 
 
Performing
 
 
 
 
 
 
 
 
 
 
Current
 
$
12,777

 
$
1,588

 
$
486

 
$
22

 
$
14,873

30-59 days past due
 
170

 
49

 
13

 

 
232

60-89 days past due
 
127

 
26

 
19

 

 
172

Total performing
 
13,074

 
1,663

 
518

 
22

 
15,277

Nonperforming
 
 
 
 
 
 
 
 
 
 
90-179 days past due
 
217

 
39

 
7

 
1

 
264

180 days or more past due
 
4

 
1

 
13

 

 
18

Total nonperforming
 
221

 
40

 
20

 
1

 
282

Total
 
$
13,295

 
$
1,703

 
$
538

 
$
23

 
$
15,559

Schedule of information regarding purchased credit impaired finance receivables
Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows:
(dollars in millions)
 
OM Loans
 
SCP Loans
 
FA Loans (a)
 
Total
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
Carrying amount, net of allowance
 
$
324

 
$

 
$
70

 
$
394

Outstanding balance (b)
 
444

 

 
107

 
551

Allowance for purchased credit impaired finance receivable losses
 
29

 

 
8

 
37

 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
Carrying amount, net of allowance
 
$
652

 
$
350

 
$
89

 
$
1,091

Outstanding balance
 
911

 
482

 
136

 
1,529

Allowance for purchased credit impaired finance receivable losses
 

 

 
12

 
12

                                      
(a)
Purchased credit impaired FA Loans held for sale included in the table above were as follows:
(dollars in millions)
 
 
 
 
December 31,
 
2016
 
2015
 
 
 
 
 
Carrying amount
 
$
54

 
$
59

Outstanding balance
 
83

 
89



(b)
Outstanding balance is defined as UPB of the loans with a net carrying amount.

Purchased credit impaired FA Loans held for sale
Purchased credit impaired FA Loans held for sale included in the table above were as follows:
(dollars in millions)
 
 
 
 
December 31,
 
2016
 
2015
 
 
 
 
 
Carrying amount
 
$
54

 
$
59

Outstanding balance
 
83

 
89

Schedule of changes in accretable yield for purchased credit impaired finance receivables
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows:
(dollars in millions)
 
OM Loans
 
SCP Loans
 
FA Loans
 
Total
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
151

 
$
375

 
$
66

 
$
592

Accretion (a)
 
(69
)
 
(16
)
 
(7
)
 
(92
)
Other (b)
 
(23
)
 

 

 
(23
)
Reclassifications from nonaccretable difference (c)
 

 

 
12

 
12

Transfers due to finance receivables sold
 

 
(359
)
 
(11
)
 
(370
)
Balance at end of period
 
$
59

 
$

 
$
60

 
$
119

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$

 
$
452

 
$
54

 
$
506

Additions from OneMain Acquisition
 
166

 

 

 
166

Accretion (a)
 
(15
)
 
(77
)
 
(8
)
 
(100
)
Reclassifications from nonaccretable difference (c)
 

 

 
20

 
20

Balance at end of period
 
$
151

 
$
375

 
$
66

 
$
592

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$

 
$
426

 
$
773

 
$
1,199

Accretion (a)
 

 
(97
)
 
(75
)
 
(172
)
Reclassifications from nonaccretable difference (c)
 

 
123

 
19

 
142

Transfers due to finance receivables sold
 

 

 
(663
)
 
(663
)
Balance at end of period
 
$

 
$
452

 
$
54

 
$
506

                                      
(a)
Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:
(dollars in millions)
 
 
 
 
Years Ended December 31,
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
Accretion
 
$
5

 
$
6

 
$
13



(b)
Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield.

(c)
Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows.

Impaired Financing Receivables
Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows:
(dollars in millions)
 
 
 
 
Years Ended December 31,
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
Accretion
 
$
5

 
$
6

 
$
13

Schedule of information regarding TDR finance receivables
Information regarding TDR finance receivables held for investment and held for sale were as follows:
(dollars in millions)
 
Personal
Loans (a)
 
SpringCastle
Portfolio

Real Estate
Loans (a)

Total
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
TDR gross finance receivables (b)
 
$
151

 
$

 
$
133

 
$
284

TDR net finance receivables
 
152

 

 
134

 
286

Allowance for TDR finance receivable losses
 
69

 

 
11

 
80

 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
TDR gross finance receivables (b)
 
$
46

 
$
14

 
$
200

 
$
260

TDR net finance receivables
 
46

 
13

 
201

 
260

Allowance for TDR finance receivable losses
 
17

 
4

 
34

 
55

                                      
(a)
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 

 
 
December 31, 2016
 
 
 
 

 
 
TDR gross finance receivables
 
$

 
$
89

 
$
89

TDR net finance receivables
 

 
90

 
90

 
 
 
 
 

 
 
December 31, 2015
 
 
 
 

 
 
TDR gross finance receivables
 
$
2

 
$
92

 
$
94

TDR net finance receivables
 
2

 
92

 
94



(b)
As defined earlier in this Note.

TDR finance receivables held for sale
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 

 
 
December 31, 2016
 
 
 
 

 
 
TDR gross finance receivables
 
$

 
$
89

 
$
89

TDR net finance receivables
 

 
90

 
90

 
 
 
 
 

 
 
December 31, 2015
 
 
 
 

 
 
TDR gross finance receivables
 
$
2

 
$
92

 
$
94

TDR net finance receivables
 
2

 
92

 
94

Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows:
(dollars in millions)
 
Personal
Loans (a)
 
SpringCastle
Portfolio
 
Real Estate
Loans (a)
 
Total
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
TDR average net receivables
 
$
95

 
$

 
$
175

 
$
270

TDR finance charges recognized
 
12

 

 
11

 
23

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
TDR average net receivables (b)
 
$
35

 
$
12

 
$
198

 
$
245

TDR finance charges recognized
 
3

 
1

 
11

 
15

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
TDR average net receivables
 
$
17

 
$
5

 
$
957

 
$
979

TDR finance charges recognized
 
2

 
1

 
48

 
51

                                      
(a)
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 

 
 
TDR average net receivables
 
$
1

 
$
102

 
$
103

TDR finance charges recognized
 

 
6

 
6

 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
TDR average net receivables (a)
 
$
2

 
$
91

 
$
93

TDR finance charges recognized
 

 
5

 
5

 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
TDR average net receivables (b)
 
$

 
$
250

 
$
250

TDR finance charges recognized
 

 
5

 
5

                                      
(a)
TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

(b)
TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

(b)
TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables.

TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 

 
 
TDR average net receivables
 
$
1

 
$
102

 
$
103

TDR finance charges recognized
 

 
6

 
6

 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
TDR average net receivables (a)
 
$
2

 
$
91

 
$
93

TDR finance charges recognized
 

 
5

 
5

 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
TDR average net receivables (b)
 
$

 
$
250

 
$
250

TDR finance charges recognized
 

 
5

 
5

                                      
(a)
TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015.

(b)
TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014.

Schedule of information regarding new volume of the TDR finance receivables
Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows:
(dollars in millions)
 
Personal
Loans (a)
 
SpringCastle
Portfolio
 
Real Estate
Loans (a)
 
Total
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$
211

 
$
1

 
$
16

 
$
228

Post-modification TDR net finance receivables:
 
 
 
 
 
 
 


Rate reduction
 
$
194

 
$
1

 
$
16

 
$
211

Other (b)
 
12

 

 
1

 
13

Total post-modification TDR net finance receivables
 
$
206

 
$
1

 
$
17

 
$
224

Number of TDR accounts
 
29,435

 
157

 
364

 
29,956

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$
48

 
$
7

 
$
21

 
$
76

Post-modification TDR net finance receivables:
 
 
 
 
 
 
 


Rate reduction
 
$
31

 
$
6

 
$
17

 
$
54

Other (b)
 
12

 

 
5

 
17

Total post-modification TDR net finance receivables
 
$
43

 
$
6

 
$
22

 
$
71

Number of TDR accounts
 
8,425

 
721

 
385

 
9,531

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$
18

 
$
10

 
$
215

 
$
243

Post-modification TDR net finance receivables:
 
 
 
 
 
 
 


Rate reduction
 
$
10

 
$
10

 
$
158

 
$
178

Other (b)
 
6

 

 
46

 
52

Total post-modification TDR net finance receivables
 
$
16

 
$
10

 
$
204

 
$
230

Number of TDR accounts
 
4,213

 
1,155

 
2,385

 
7,753

                                      
(a)
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 

 
 

 
 

Pre-modification TDR net finance receivables
 
$

 
$
5

 
$
5

Post-modification TDR net finance receivables
 
$

 
$
5

 
$
5

Number of TDR accounts
 
174

 
122

 
296

 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$
1

 
$
6

 
$
7

Post-modification TDR net finance receivables
 
$
1

 
$
7

 
$
8

Number of TDR accounts
 
162

 
113

 
275

 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$

 
$
6

 
$
6

Post-modification TDR net finance receivables
 
$

 
$
7

 
$
7

Number of TDR accounts
 

 
94

 
94



(b)
“Other” modifications primarily include forgiveness of principal or interest.
New volume of the TDR finance receivables held for sale
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Personal
Loans
 
Real Estate
Loans
 
Total
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 

 
 

 
 

Pre-modification TDR net finance receivables
 
$

 
$
5

 
$
5

Post-modification TDR net finance receivables
 
$

 
$
5

 
$
5

Number of TDR accounts
 
174

 
122

 
296

 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$
1

 
$
6

 
$
7

Post-modification TDR net finance receivables
 
$
1

 
$
7

 
$
8

Number of TDR accounts
 
162

 
113

 
275

 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
Pre-modification TDR net finance receivables
 
$

 
$
6

 
$
6

Post-modification TDR net finance receivables
 
$

 
$
7

 
$
7

Number of TDR accounts
 

 
94

 
94

Schedule of Troubled Debt Restructurings, Subsequently Defaulted
Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows:
(dollars in millions)
 
Personal
Loans
 
SpringCastle
Portfolio
 
Real Estate
Loans (a)
 
Total
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
TDR net finance receivables (b) (c)
 
$
24

 
$

 
$
3

 
$
27

Number of TDR accounts
 
3,693

 
19

 
61

 
3,773

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
TDR net finance receivables (b)
 
$
8

 
$
2

 
$
3

 
$
13

Number of TDR accounts
 
1,655

 
147

 
46

 
1,848

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
TDR net finance receivables (b)
 
$
1

 
$
1

 
$
33

 
$
35

Number of TDR accounts
 
141

 
53

 
524

 
718

                                      
(a)
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Real Estate
Loans
 
 
 
Year Ended December 31, 2016
 
 
TDR net finance receivables
 
$
2

Number of TDR accounts
 
30

 
 
 
Year Ended December 31, 2015
 
 
TDR net finance receivables
 
$
1

Number of TDR accounts
 
17

 
 
 
Year Ended December 31, 2014
 
 
TDR net finance receivables
 
$
3

Number of TDR accounts
 
49



(b)
Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

(c)
TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above.
Schedule of Trouble Debt Restructurings, Subsequently Defaulted, Held for Sale
TDR finance receivables held for sale included in the table above were as follows:
(dollars in millions)
 
Real Estate
Loans
 
 
 
Year Ended December 31, 2016
 
 
TDR net finance receivables
 
$
2

Number of TDR accounts
 
30

 
 
 
Year Ended December 31, 2015
 
 
TDR net finance receivables
 
$
1

Number of TDR accounts
 
17

 
 
 
Year Ended December 31, 2014
 
 
TDR net finance receivables
 
$
3

Number of TDR accounts
 
49