LOAN SERVICING (Tables) - Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2022

Servicing Assets at Fair Value [Line Items]

Servicing Asset at Amortized Cost

The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 7.1

(in millions)	March 31, 2022		December 31, 2021
Mortgage loans sold with servicing retained	$	4,985	$	4,855

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 7.2

	Three Months Ended March 31,
(in millions)	2022		2021
Mortgage loans sold with servicing retained	$	351	$	506
Pretax net gains resulting from above loan sales (1)	1		17
Mortgage servicing fees (1)	3		3

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of activity relating to MSRs:

TABLE 7.3

	Three Months Ended March 31,
(in millions)	2022		2021
Balance at beginning of period	$	44.4	$	35.6
Additions	4.1		5.2
Payoffs and curtailments	(1.6)		(4.1)
(Impairment charge) / recovery	2.3		2.5
Amortization	(0.7)		(0.6)
Balance at end of period	$	48.5	$	38.6
Fair value, beginning of period	$	46.0	$	35.6
Fair value, end of period	58.2		40.2

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 7.4

(dollars in millions)	March 31, 2022			December 31, 2021
Weighted average life (months)	89.9			76.6
Constant prepayment rate (annualized)	8.4		%	11.2		%
Discount rate	9.5		%	9.5		%
Effect on fair value due to change in interest rates:
+2.00%	$	11		$	15
+1.00%	6			9
+0.50%	4			5
+0.25%	2			3
-0.25%	(3)			(3)
-0.50%	(6)			(7)