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Receivables Held for Sale (Tables)
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Summary of Activity of Real Estate Secured Receivables Either Transferred to REO or Sold in a Short Sale
The following table summarizes the activity of real estate secured receivables either transferred to REO or the underlying collateral sold in a short sale during the three months ended March 31, 2015 and 2014.
Three Months Ended March 31,
2015
 
2014
 
(in millions)
Carrying value of real estate secured receivables:
 
 
 
Transferred to REO after obtaining title to the underlying collateral
$
24

 
$
70

Underlying collateral sold in a short sale
11

 
11

Impact to lower of amortized cost or fair value adjustment previously recorded resulting from the transfer to REO or short sales:
 
 
 
Transferred to REO after obtaining title to the underlying collateral
—

 
4

Underlying collateral sold in a short sale
1

 
1
Summary of Activity in Receivables Held for Sale
The following table summarizes the activity in receivables held for sale during the three months ended March 31, 2015 and 2014:
 
Receivables
Held for Sale
 
(in millions)
Three Months Ended March 31, 2015:
 
Real estate secured receivables held for sale at beginning of period
$
860

Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale
(17
)
Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(35
)
Change in real estate secured receivable balance, including collections
(7
)
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(2)
296

Real estate secured receivables held for sale at end of period(3)
$
1,097

Three Months Ended March 31, 2014:
 
Real estate secured receivables held for sale at beginning of period
$
2,047

Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale
171

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(81
)
Change in real estate secured receivable balance, including collections
29

Transfer of real estate secured receivables into held for investment at the lower of amortized cost or fair value(1)
(8
)
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(2)
262

Real estate secured receivables held for sale at end of period(3)
$
2,420

 
(1) 
During the three months ended March 31, 2014, we identified a small number of receivables held for sale which did not meet our criteria to be classified as held for sale. As a result we transferred these receivables to held for investment at the lower of amortized cost or fair value.
(2) 
For the three months ended March 31, 2015, no initial lower of amortized cost or fair value adjustment was required for the receivables transferred to held for sale as the fair value of these receivables at the time of transfer exceeded the carrying value after consideration of credit loss reserves associated with these receivables. The initial lower of amortized cost or fair value adjustment on receivables transferred into held for sale during the three months ended March 31, 2014, totaled $60 million.
(3) 
The following table provides a rollforward of our valuation allowance for the three months ended March 31, 2015 and 2014. At March 31, 2015, the valuation allowance is zero as the fair value of the pool of receivables held for sale at March 31, 2015 exceeds the carrying value as these receivables are carried at the lower of amortized cost or fair value. See Note 13, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables.
Allowance for Credit Losses on Financing Receivables
The following table provides a rollforward of our valuation allowance for the three months ended March 31, 2015 and 2014. At March 31, 2015, the valuation allowance is zero as the fair value of the pool of receivables held for sale at March 31, 2015 exceeds the carrying value as these receivables are carried at the lower of amortized cost or fair value. See Note 13, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables.
Three Months Ended March 31,
2015
 
2014
 
(in millions)
Balance at beginning of period
$
—

 
$
329

Initial valuation allowance for real estate secured receivables transferred to held for sale during the period
—

 
60

Increase in (release of) valuation allowance resulting from changes in fair value
17

 
(171
)
Valuation allowance on real estate secured receivables transferred to held for investment
—

 
(4
)
Change in valuation allowance for collections, charged-off, transferred to REO or short sale
(17
)
 
(49
)
Balance at end of period
$
—

 
$
165
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment
The following table summarizes the components of the lower of amortized cost or fair value adjustment recorded in other revenues during the three months ended March 31, 2015 and 2014:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
(Income)/Expense:
 
 
 
 
 
 
 
Three Months Ended March 31, 2015:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
—

 
$
—

 
$
—

 
$
—

Subsequent to initial transfer to held for sale
16

 
—

 
1

 
17

Lower of amortized cost or fair value adjustment recorded through other revenues(1)
$
16

 
$
—

 
$
1

 
$
17

 
 
 
 
 
 
 
 
Three Months Ended March 31, 2014:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment
$
60

 
$
—

 
$
—

 
$
60

Subsequent to initial transfer to held for sale
(176
)
 
4

 
1

 
(171
)
Lower of amortized cost or fair value adjustment recorded through other revenues(1)
$
(116
)
 
$
4

 
$
1

 
$
(111
)
 

(1) 
During three months ended March 31, 2015 and 2014, no lower of amortized cost or fair value adjustment was recorded as a provision for credit losses.