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Receivables Held for Sale (Tables)
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Summary of Real Estate Secured Receivables Held for Sale
Real estate secured receivables held for sale which are carried at the lower of amortized cost or fair value are comprised of the following:
 
December 31, 2015
 
December 31, 2014
 
(in millions)
Real estate secured receivables held for sale:
 
 
 
First lien
$
8,110

 
$
860

Second lien
155

 
—

Total real estate secured receivables held for sale
$
8,265

 
$
860
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 for which the underlying collateral was sold in a short sale during 2015, 2014 and 2013.
Year Ended December 31,
2015
 
2014
 
2013
 
(in millions)
Carrying value of real estate secured receivables:
 
 
 
 
 
Transferred to REO after obtaining title to the underlying collateral
$
93

 
$
182

 
$
529

Underlying collateral sold in a short sale
55

 
61

 
182

Impact to lower of amortized cost or fair value adjustment previously recorded resulting from the transfer to REO or short sales - (income) expense:
 
 
 
 
 
Transferred to REO after obtaining title to the underlying collateral
(1
)
 
5

 
(40
)
Underlying collateral sold in a short sale
2

 
3

 
(22
)
Summary of Activity in Receivables Held for Sale
The following table summarizes the activity in receivables held for sale during 2015, 2014 and 2013:
 
Real Estate Secured
 
Personal Non-Credit Card
 
Total Receivables Held for Sale
 
(in millions)
Year Ended December 31, 2015:
 
 
 
 
 
Real estate secured receivables held for sale at beginning of period
$
860

 
$
—

 
$
860

Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(1)(2)
10,327

 
—

 
10,327

Real estate secured receivable sales
(1,995
)
 
—

 
(1,995
)
Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale
(130
)
 
—

 
(130
)
Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(148
)
 
—

 
(148
)
Change in real estate secured receivable balance, including collections
(649
)
 
—

 
(649
)
Real estate secured receivables held for sale at end of period(3)
$
8,265

 
$
—

 
$
8,265

 
 
 
 
 
 
Year Ended December 31, 2014:
 
 
 
 
 
Real estate secured receivables held for sale at beginning of period
$
2,047

 
$
—

 
$
2,047

Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(1)(2)
909

 
—

 
909

Real estate secured receivable sales
(2,152
)
 
—

 
(2,152
)
Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale
314

 
—

 
314

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(243
)
 
—

 
(243
)
Change in real estate secured receivable balance, including collections
30

 
—

 
30

Transfer of real estate secured receivables into held for investment at the lower of amortized cost or fair value(4)
(45
)
 
 
 
(45
)
Real estate secured receivables held for sale at end of period(3)
$
860

 
$
—

 
$
860

 
 
 
 
 
 
Year Ended December 31, 2013:
 
 
 
 
 
Receivables held for sale at beginning of period
$
3,022

 
$
3,181

 
$
6,203

Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value(1)(2)
2,130

 
—

 
2,130

Receivable sales:
 
 
 
 
 
First lien real estate secured
(3,127
)
 
—

 
(3,127
)
Personal non-credit card receivables
—

 
(2,947
)
 
(2,947
)
Lower of amortized cost or fair value adjustment on receivables held for sale
830

 
(82
)
 
748

Carrying value of real estate secured receivables held for sale settled through short sale or transfer to REO
(711
)
 
—

 
(711
)
Change in receivable balance, including collections
(97
)
 
(152
)
 
(249
)
Receivables held for sale at end of period(3)
$
2,047

 
$
—

 
$
2,047

 
(1) 
The initial lower of amortized cost or fair value adjustment on receivables transferred into held for sale during 2015 totaled $234 million compared with $113 million during 2014 and $212 million during 2013.
(2) 
Amount includes any accrued interest associated with the receivable.
(3) 
Real estate secured receivables held for sale in the table above are presented net of the valuation allowance.
(4) 
During the first quarter of 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.
Allowance for Credit Losses on Financing Receivables
The following table provides a rollforward of our valuation allowance for 2015, 2014 and 2013. See Note 20, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables.
Year Ended December 31,
2015
 
2014
 
2013
 
(in millions)
Balance at beginning of period
$
—

 
$
329

 
$
1,452

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

 
113

 
212

Increase in (release of) valuation allowance resulting from changes in fair value
130

 
(314
)
 
(748
)
Valuation allowance on real estate secured receivables transferred to held for investment
—

 
(10
)
 
—

Change in valuation allowance for loans sold
(144
)
 
149

 
(183
)
Change in valuation allowance for collections, charged-off, transferred to REO or short sale
27

 
(267
)
 
(404
)
Balance at end of period
$
13

 
$
—

 
$
329
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 during 2015, 2014 and 2013:
 
Lower of Amortized Cost or Fair Value Adjustments Associated With
 
 
 
Fair Value
 
REO
 
Short Sales
 
Total
 
(in millions)
(Income)/Expense:
 
 
 
 
 
 
 
Year Ended December 31, 2015:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of:
 
 
 
 
 
 
 
Provision for credit losses(1)
$
234

 
$
—

 
$
—

 
$
234

Other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment(2)
—

 
—

 
—

 
—

Subsequent to initial transfer to held for sale
129

 
(1
)
 
2

 
130

Lower of amortized cost or fair value adjustment recorded through other revenues
129

 
(1
)
 
2

 
130

Lower of amortized cost or fair value adjustment
$
363

 
$
(1
)
 
$
2

 
$
364

 
 
 
 
 
 
 
 
Year Ended December 31, 2014:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustments recorded as a component of other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment(2)
$
113

 
$
—

 
$
—

 
$
113

Subsequent to initial transfer to held for sale
(322
)
 
5

 
3

 
(314
)
Lower of amortized cost or fair value adjustment recorded through other revenues(3)
$
(209
)
 
$
5

 
$
3

 
$
(201
)
 
 
 
 
 
 
 
 
Year Ended December 31, 2013:
 
 
 
 
 
 
 
Lower of amortized cost or fair value adjustment recorded as other revenues:
 
 
 
 
 
 
 
Initial lower of amortized cost or fair value adjustment(2)
$
212

 
$
—

 
$
—

 
$
212

Subsequent to initial transfer to held for sale
(686
)
 
(40
)
 
(22
)
 
(748
)
Lower of amortized cost or fair value adjustment recorded through other revenues(3)
$
(474
)
 
$
(40
)
 
$
(22
)
 
$
(536
)
 

(1) 
The portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors was recorded as provision for credit losses in the consolidated statement of income (loss). This portion of the initial lower of amortized cost or fair value adjustment was attributed to credit factors as there was no objective, verifiable evidence to indicate non-credit factors were associated with the decline in fair value.
(2) 
The portion of the initial lower of amortized cost or fair value adjustment which reflects the impact on value caused by current marketplace conditions including changes in interest rates was recorded as a component of total other revenues in the consolidated statement income (loss).
(3) 
During 2014 and 2013, no initial lower of amortized cost or fair value adjustment was attributed to credit factors and recorded as a provision for credit losses. The entire adjustment was attributable to non-credit related factors as these receivables were already carried at the lower of amortized cost or fair value of the collateral less cost to sell.