Mortgage Banking Activity

12 Months Ended

Dec. 31, 2020

Mortgage Banking [Abstract]

Mortgage Banking Activity

Mortgage Banking Activity

On July 1, 2020 as part of the IBKC merger, FHN obtained IBKC mortgage banking operations which included origination and servicing of residential first lien mortgages that conform to standards established by GSEs that are major investors in U.S. home mortgages, but can also consist of junior lien loans secured by residential property. These loans are primarily sold to private companies that are unaffiliated with the GSEs on a servicing-released basis. Gains and losses on these mortgage loans are included in mortgage banking and title income on the Consolidated Statements of Income. Prior to the

merger, FHN’s mortgage banking operations were not significant; however, at December 31, 2020 FHN had approximately $55 million of loans that remained from pre-2009 Mortgage Business operations. Activity related to the pre-2009 mortgage loans was primarily limited to payments and write-offs in 2020, with no new originations or loan sales and only an insignificant amount of repurchases and is excluded from the disclosure below.

The following table summarizes activity relating to residential mortgage loans held for sale for the year ended December 31, 2020:

(Dollars in millions)	Year ended December 31, 2020
Balance at beginning of period	$	4
Acquired	320
Originations and purchases	2,499
Sales, net of gains	(2,405)
Mortgage loans transferred to held for investment	(9)
Balance at end of period	$	409

Mortgage Servicing Rights

Effective with the IBKC merger, FHN made an election to record mortgage servicing rights at the lower of cost or market value and amortize over the remaining servicing life of the loans, with consideration given to prepayment assumptions.

Mortgage servicing rights are included in Other assets on the Consolidated Balance Sheets. Mortgage servicing rights had the following carrying values as of the period indicated.

	December 31, 2020
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Mortgage servicing rights	$	28	$	(3)	$	25

In addition, there was an insignificant amount of non-mortgage and commercial servicing rights as of December 31, 2020 and 2019. Total mortgage servicing fees included in Mortgage banking and title income were $2 million for the years ended December 31, 2020 and 2019