Quarterly report [Sections 13 or 15(d)]

MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)

v3.25.2
MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)
6 Months Ended
Jun. 30, 2025
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.
Three Months Ended Six Months Ended
(dollar amounts in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Residential mortgage loans sold with servicing retained $ 1,168  $ 983  $ 2,177  $ 1,794 
Pretax gains resulting from above loan sales (1) 23  19  42  32 
Total servicing, late, and other ancillary fees (1)
26  25  53  51 
(1)Included in mortgage banking income.
Summarizes Activity Relating to Loans Sold with Servicing Retained Using the Fair Value Method
The following table summarizes the changes in MSRs recorded using the fair value method.
Three Months Ended Six Months Ended
(dollar amounts in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Fair value, beginning of period $ 564  $ 534  $ 573  $ 515 
New servicing assets created 20  11  40  21 
Change in fair value during the period due to:
Time decay (1) (7) (7) (14) (13)
Payoffs (2) (10) (7) (17) (12)
Changes in valuation inputs or assumptions (3) —  12  (15) 32 
Fair value, end of period $ 567  $ 543  $ 567  $ 543 
Related loans serviced for third parties, unpaid principal balance, end of period
$ 33,925  $ 33,404  $ 33,925  $ 33,404 
(1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
(2)Represents decrease in value associated with loans that paid off during the period.
(3)Represents change in value resulting primarily from market-driven changes in interest rates.
Summary of Key Assumptions and the Sensitivity of the Servicing Rights Value to Changes in the Assumptions
The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these assumptions.
At June 30, 2025 At December 31, 2024
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)
8.31  % $ (16) $ (30) 7.54  % $ (14) $ (28)
Spread over forward interest rate swap rates 566  bps (13) (26) 568  bps (13) (26)