Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE LOAN SALES AND SERVICING RIGHTS

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MORTGAGE LOAN SALES AND SERVICING RIGHTS
 3 Months Ended
Mar. 31, 2024
Transfers and Servicing [Abstract]  
MORTGAGE LOAN SALES AND SERVICING RIGHTS MORTGAGE LOAN SALES AND SERVICING RIGHTS
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained.
Three Months Ended
(dollar amounts in millions) March 31, 2024 March 31, 2023
Residential mortgage loans sold with servicing retained $ 811  $ 862 
Pretax gains resulting from above loan sales (1) 13  7 
Total servicing, late, and other ancillary fees (1)
 26  24 
(1)Included in mortgage banking income.
The following table summarizes the changes in MSRs recorded using the fair value method.
Three Months Ended
(dollar amounts in millions) March 31, 2024 March 31, 2023
Fair value, beginning of period $ 515  $ 494 
New servicing assets created 10  13 
Change in fair value during the period due to:
Time decay (1) (6) (6)
Payoffs (2) (5) (4)
Changes in valuation inputs or assumptions (3) 20  (12)
Fair value, end of period $ 534  $ 485 
Loans serviced for third parties, unpaid principal balance
 $ 33,303  $ 33,237 
(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.
A summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions follows:
At March 31, 2024 At December 31, 2023
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)
8.15  % $ (14) $ (28) 8.61  % $ (15) $ (28)
Spread over forward interest rate swap rates 550  bps (12) (23) 538  bps (11) (22)