Quarterly report pursuant to Section 13 or 15(d)

LOAN SALES AND SECURITIZATIONS (Tables)

v3.8.0.1
LOAN SALES AND SECURITIZATIONS (Tables)
 3 Months Ended
Mar. 31, 2018
Transfers and Servicing [Abstract]  
Summarizes activity relating to loans securitized sold with servicing retained
The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month periods ended March 31, 2018 and 2017:
 

Three Months Ended
March 31,
(dollar amounts in millions)
 
2018
 
2017
Residential mortgage loans sold with servicing retained
 
$
843

 
$
845

Pretax gains resulting from above loan sales (1)
 
21

 
22

(1)
Recorded in mortgage banking income.
The following table summarizes activity relating to SBA loans sold with servicing retained for the three-month periods ended March 31, 2018 and 2017:
 
 
Three Months Ended
March 31,
(dollar amounts in millions)
 
2018
 
2017
SBA loans sold with servicing retained
 
$
64

 
$
78

Pretax gains resulting from above loan sales (1)
 
7

 
6


(1)
Recorded in gain on sale of loans.
Summarizes activity relating to loans sold with servicing retained using the fair value method
Changes in the carrying value of automobile loan servicing rights for the three-month periods ended March 31, 2018 and 2017, and the fair value at the end of each period were as follows:
 
 
Three Months Ended
March 31,
(dollar amounts in millions)
 
2018
 
2017
Carrying value, beginning of period
 
$
8

 
$
18

Amortization
 
(2
)
 
(3
)
Carrying value, end of period
 
$
6

 
$
15

Fair value, end of period
 
$
7

 
$
15

Weighted-average contractual life (years)
 
3.4

 
4.0

The following table summarizes the changes in the carrying value of the servicing asset for the three-month periods ended March 31, 2018 and 2017:
 
 
Three Months Ended
March 31,
(dollar amounts in millions)
 
2018
 
2017
Carrying value, beginning of period
 
$
27

 
$
21

New servicing assets created
 
3

 
1

Amortization
 
(2
)
 
(1
)
Carrying value, end of period
 
$
28

 
$
21

Fair value, end of period
 
$
32

 
$
26

Weighted-average life (years)
 
3.3

 
3.3

Summarizes activity relating to loans sold with servicing retained using the amortization method
The following table summarizes the changes in MSRs recorded using the amortization method for the three-month periods ended March 31, 2018 and 2017:
 
 
Three Months Ended
March 31,
(dollar amounts in millions)
 
2018
 
2017
Carrying value, beginning of period
 
$
191

 
$
172

New servicing assets created
 
10

 
10

Impairment recovery (charge)
 
7

 
2

Amortization
 
(8
)
 
(6
)
Carrying value, end of period
 
$
200

 
$
178

Fair value, end of period
 
$
205

 
$
179

Weighted-average life (years)
 
7.0

 
7.1

Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at March 31, 2018, and December 31, 2017 follows:
 
March 31, 2018
 
December 31, 2017
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollar amounts in millions)
Actual
 
10%
adverse
change
 
20%
adverse
change
 
Actual
 
10%
adverse
change
 
20%
adverse
change
Constant prepayment rate (annualized)
8.42
%
 
$
(9
)
 
$
(18
)
 
8.30
%
 
$
(5
)
 
$
(10
)
Spread over forward interest rate swap rates
979
 bps
 
(8
)
 
(14
)
 
1,049
 bps
 
(7
)
 
(13
)