Investment Securities (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Securities by Credit Rating [Table Text Block] |
As of June 30, 2026 and December 31, 2025, our investments in CRT and non-Agency securities had the following credit ratings (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | CRT and Non-Agency Security Credit Ratings 1 | | CRT | | RMBS 2 | | CMBS | | CRT | | RMBS 2 | | CMBS | | AAA | | $ | — | | | $ | 1 | | | $ | — | | | $ | — | | | $ | 1 | | | $ | — | | | AA | | 8 | | | — | | | — | | | 13 | | | — | | | — | | | A | | — | | | 1 | | | — | | | — | | | — | | | — | | | BBB | | 13 | | | 1 | | | 5 | | | — | | | 2 | | | 5 | | | BB | | 24 | | | — | | | — | | | 46 | | | — | | | — | | | B | | 10 | | | — | | | — | | | 11 | | | — | | | 5 | | | Not Rated | | 518 | | | 12 | | | 4 | | | 536 | | | 12 | | | — | | | Total | | $ | 573 | | | $ | 15 | | | $ | 9 | | | $ | 606 | | | $ | 15 | | | $ | 10 | |
________________________________ 1.Represents the lowest of Standard and Poor’s (“S&P”), Moody’s, Fitch, DBRS, Kroll Bond Rating Agency (“KBRA”) and Morningstar credit ratings, stated in terms of the S&P equivalent rating as of each date. 2.RMBS excludes other mortgage credit investments of $70 million and $70 million as of June 30, 2026 and December 31, 2025, respectively.
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| Components of Investment Securities |
The following tables summarize our investment securities as of June 30, 2026 and December 31, 2025, excluding TBA securities and other mortgage credit investments (dollars in millions). Details of our TBA securities are included in Note 5. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Investment Securities | | Amortized
Cost | | Fair Value | | Amortized
Cost | | Fair Value | | Agency RMBS: | | | | | | | | | | Fixed rate | | $ | 83,437 | | | $ | 82,334 | | | $ | 77,643 | | | $ | 77,483 | | | Adjustable rate | | 814 | | | 815 | | | 858 | | | 867 | | | CMO | | 77 | | | 74 | | | 85 | | | 83 | | | Interest-only and principal-only strips | | 123 | | | 115 | | | 122 | | | 116 | | | Multifamily | | 3,459 | | | 3,446 | | | 2,521 | | | 2,539 | | | Total Agency RMBS | | 87,910 | | | 86,784 | | | 81,229 | | | 81,088 | | Non-Agency RMBS 1 | | 16 | | | 15 | | | 16 | | | 15 | | | CMBS | | 10 | | | 9 | | | 11 | | | 10 | | | CRT securities | | 535 | | | 573 | | | 561 | | | 606 | | | Total investment securities | | $ | 88,471 | | | $ | 87,381 | | | $ | 81,817 | | | $ | 81,719 | |
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| Summary Of Agency Securities Estimated Weighted Average Life Classifications |
The following table summarizes our investments as of June 30, 2026 and December 31, 2025 according to their estimated weighted average life classification (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | Estimated Weighted Average Life of Investment Securities 1 | | Fair Value | | Amortized
Cost | | Weighted
Average
Coupon | | Weighted
Average
Yield | | Fair Value | | Amortized
Cost | | Weighted
Average
Coupon | | Weighted
Average
Yield | | ≤ 3 years | | $ | 1,219 | | | $ | 1,206 | | | 6.50% | | 6.26% | | $ | 4,670 | | | $ | 4,630 | | | 6.59% | | 5.50% | | > 3 years and ≤ 5 years | | 9,777 | | | 9,717 | | | 5.84% | | 5.40% | | 19,068 | | | 18,755 | | | 5.85% | | 5.50% | | > 5 years and ≤10 years | | 71,237 | | | 72,417 | | | 4.95% | | 4.81% | | 55,562 | | | 56,048 | | | 4.86% | | 4.68% | | > 10 years | | 5,148 | | | 5,131 | | | 4.67% | | 5.12% | | 2,419 | | | 2,384 | | | 4.93% | | 5.11% | Total | | $ | 87,381 | | | $ | 88,471 | | | 5.05% | | 4.91% | | $ | 81,719 | | | $ | 81,817 | | | 5.19% | | 4.93% |
________________________________ 1.Table excludes other mortgage credit investments of $70 million and $70 million as of June 30, 2026 and December 31, 2025, respectively.
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| Summary of Net Gain from Sale of Agency Securities |
The following table is a summary of our net gain (loss) from the sale of investment securities for the three and six months ended June 30, 2026 and 2025 by investment classification of accounting (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | 2026 | | 2025 | | | | Investment Securities | | Available-for-Sale Securities 2 | | Fair Value Option Securities | | Total | | Available-for-Sale Securities 2 | | Fair Value Option Securities | | Total | | | | | | | | Investment securities sold, at cost | | $ | — | | | $ | (12,652) | | | $ | (12,652) | | | $ | (109) | | | $ | (9,499) | | | $ | (9,608) | | | | | | | | Proceeds from investment securities sold 1 | | — | | | 12,636 | | | 12,636 | | | 95 | | | 9,336 | | | 9,431 | | | | | | | | | Net gain (loss) on sale of investment securities | | $ | — | | | $ | (16) | | | $ | (16) | | | $ | (14) | | | $ | (163) | | | $ | (177) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross gain on sale of investment securities | | $ | — | | | $ | 30 | | | $ | 30 | | | $ | — | | | $ | 12 | | | $ | 12 | | | | | | | | | Gross loss on sale of investment securities | | — | | | (46) | | | (46) | | | (14) | | | (175) | | | (189) | | | | | | | | | Net gain (loss) on sale of investment securities | | $ | — | | | $ | (16) | | | $ | (16) | | | $ | (14) | | | $ | (163) | | | $ | (177) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | Investment Securities | | Available-for-Sale Securities 2,3 | | Fair Value Option Securities | | Total | | Available-for-Sale Securities 2,3 | | Fair Value Option Securities | | Total | | | | | | | | Investment securities sold, at cost | | $ | (93) | | | $ | (21,089) | | | $ | (21,182) | | | $ | (109) | | | $ | (12,904) | | | $ | (13,013) | | | | | | | | Proceeds from investment securities sold 1 | | 87 | | | 21,153 | | | 21,240 | | | 95 | | | 12,496 | | | 12,591 | | | | | | | | | Net gain (loss) on sale of investment securities | | $ | (6) | | | $ | 64 | | | $ | 58 | | | $ | (14) | | | $ | (408) | | | $ | (422) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross gain on sale of investment securities | | $ | — | | | $ | 125 | | | $ | 125 | | | $ | — | | | $ | 33 | | | $ | 33 | | | | | | | | | Gross loss on sale of investment securities | | (6) | | | (61) | | | (67) | | | (14) | | | (441) | | | (455) | | | | | | | | | Net gain (loss) on sale of investment securities | | $ | (6) | | | $ | 64 | | | $ | 58 | | | $ | (14) | | | $ | (408) | | | $ | (422) | | | | | | | |
________________________________ 1.Proceeds include cash received during the period, plus receivable for investment securities sold during the period as of period end. 2.See Note 9 for a summary of changes in accumulated OCI. 3.During the six months ended June 30, 2026 and 2025, we received principal repayments on available-for-sale securities of $221 million and $273 million, respectively.
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| Schedule of Available-for-sale Securities Reconciliation |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | | | Non-Agency 1 | | | | | | | | Non-Agency 1 | | | | | | Investment Securities | | Agency RMBS | | RMBS | | CMBS | | CRT | | Total | | Agency RMBS | | RMBS | | CMBS | | CRT | | Total | | Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | Par value 2 | | $ | 3,210 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,210 | | | $ | 3,517 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,517 | | Unamortized discount | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Unamortized premium | | 186 | | | — | | | — | | | — | | | 186 | | | 210 | | | — | | | — | | | — | | | 210 | | Amortized cost | | 3,396 | | | — | | | — | | | — | | | 3,396 | | | 3,727 | | | — | | | — | | | — | | | 3,727 | | Gross unrealized gains | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Gross unrealized losses | | (338) | | | — | | | — | | | — | | | (338) | | | (323) | | | — | | | — | | | — | | | (323) | | | Total available-for-sale securities, at fair value | | 3,058 | | | — | | | — | | | — | | | 3,058 | | | 3,404 | | | — | | | — | | | — | | | 3,404 | | | Securities remeasured at fair value through earnings: | | | | | | | | | | | | | | | | | | | | | Par value 2 | | 84,127 | | | 18 | | | 11 | | | 530 | | | 84,686 | | | 76,729 | | | 18 | | | 11 | | | 555 | | | 77,313 | | Unamortized discount | | (764) | | | (3) | | | (1) | | | (8) | | | (776) | | | (521) | | | (3) | | | — | | | (10) | | | (534) | | Unamortized premium | | 1,151 | | | 1 | | | — | | | 13 | | | 1,165 | | | 1,294 | | | 1 | | | — | | | 16 | | | 1,311 | | Amortized cost | | 84,514 | | | 16 | | | 10 | | | 535 | | | 85,075 | | | 77,502 | | | 16 | | | 11 | | | 561 | | | 78,090 | | Gross unrealized gains | | 518 | | | 1 | | | — | | | 38 | | | 557 | | | 1,129 | | | 1 | | | — | | | 45 | | | 1,175 | | Gross unrealized losses | | (1,306) | | | (2) | | | (1) | | | — | | | (1,309) | | | (947) | | | (2) | | | (1) | | | — | | | (950) | | | Total securities remeasured at fair value through earnings | | 83,726 | | | 15 | | | 9 | | | 573 | | | 84,323 | | | 77,684 | | | 15 | | | 10 | | | 606 | | | 78,315 | | | Total securities, at fair value | | $ | 86,784 | | | $ | 15 | | | $ | 9 | | | $ | 573 | | | $ | 87,381 | | | $ | 81,088 | | | $ | 15 | | | $ | 10 | | | $ | 606 | | | $ | 81,719 | |
________________________________ 1.Non-Agency amounts exclude other mortgage credit investments of $70 million and $70 million as of June 30, 2026 and December 31, 2025, respectively. 2.Par value excludes interest-only securities. As of June 30, 2026 and December 31, 2025, Agency RMBS interest-only securities had a par value of $5,923 million and $4,475 million, respectively, and non-Agency interest-only securities had a par value of $16 million and $16 million, respectively.
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| Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value |
The following table presents the gross unrealized loss and fair values of securities classified as available-for-sale by length of time that such securities have been in a continuous unrealized loss position as of June 30, 2026 and December 31, 2025 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized Loss Position For | | | | Less than 12 Months | | 12 Months or More | | Total | | Securities Classified as Available-for-Sale | | Fair
Value | | Unrealized
Loss | |
Fair Value | | Unrealized
Loss | | Fair
Value | | Unrealized
Loss | June 30, 2026 | | $ | — | | | $ | — | | | $ | 3,047 | | | $ | (338) | | | $ | 3,047 | | | $ | (338) | | December 31, 2025 | | $ | — | | | $ | — | | | $ | 3,391 | | | $ | (323) | | | $ | 3,391 | | | $ | (323) | |
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| Schedule of Mortgage Backed Securities Agency Concentration |
The following table presents the Company’s Agency RMBS portfolio by issuing GSE or U.S. Government agency at fair value as of June 30, 2026 and December 31, 2025 (in millions): | | | | | | | | | | | | | | | | | | | Investment Type | | June 30, 2026 | | December 31, 2025 | | Fannie Mae | | $ | 45,451 | | | $ | 43,148 | | | Freddie Mac | | 41,236 | | | 37,670 | | | Ginnie Mae | | 97 | | | 270 | | | Total | | $ | 86,784 | | | $ | 81,088 | |
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