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Securitizations and Other Variable Interest Entities (Tables)
6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Mortgage Related Securitizations The table below summarizes select information related to first-lien mortgage securitizations for the three and six months ended June 30, 2023 and 2022.
First-lien Mortgage Securitizations
 
Residential Mortgage - AgencyCommercial Mortgage
Three Months Ended June 30Six Months Ended June 30Three Months Ended June 30Six Months Ended June 30
(Dollars in millions)20232022202320222023202220232022
Proceeds from loan sales (1)
$908 $1,419 $2,255 $3,741 $455 $1,988 $597 $4,416 
Gains on securitizations (2)
1 — (4)(1)13 26 
Repurchases from securitization trusts (3)
5 14 25  — — — 
(1)The Corporation transfers residential mortgage loans to securitizations sponsored primarily by the government-sponsored enterprises or Government National Mortgage Association (GNMA) in the normal course of business and primarily receives residential mortgage-backed securities in exchange. Substantially all of these securities are classified as Level 2 within the fair value hierarchy and are typically sold shortly after receipt.
(2)A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization, which totaled $7 million and $17 million net of hedges, during the three and six months ended June 30, 2023 compared to $10 million and $30 million for the same periods in 2022, are not included in the table above.
(3)The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities
The table below summarizes select information related to home equity, credit card and other asset-backed VIEs in which the Corporation held a variable interest at June 30, 2023 and December 31, 2022.
Home Equity Loan, Credit Card and Other Asset-backed VIEs
 
Home Equity (1)
Credit Card (2)
Resecuritization TrustsMunicipal Bond Trusts
(Dollars in millions)June 30
2023
December 31
2022
June 30
2023
December 31
2022
June 30
2023
December 31
2022
June 30
2023
December 31
2022
Unconsolidated VIEs      
Maximum loss exposure$9 $119 $ $— $4,507 $4,243 $2,246 $2,537 
On-balance sheet assets      
Securities (3):
      
Trading account assets$ $— $ $— $1,151 $456 $ $— 
Debt securities carried at fair value
1  — 975 1,259  — 
Held-to-maturity securities —  — 2,381 2,528  — 
Total retained positions$1 $$ $— $4,507 $4,243 $ $— 
Total assets of VIEs $277 $326 $ $— $15,248 $12,255 $2,722 $3,016 
Consolidated VIEs      
Maximum loss exposure$14 $32 $8,196 $9,555 $140 $551 $1,952 $— 
On-balance sheet assets      
Trading account assets$ $— $ $— $347 $650 $1,952 $— 
Loans and leases37 97 14,188 14,555  —  — 
Allowance for loan and lease losses
8 12 (803)(808) —  — 
All other assets1 64 68  —  — 
Total assets$46 $111 $13,449 $13,815 $347 $650 $1,952 $— 
On-balance sheet liabilities      
Short-term borrowings
$ $— $ $— $ $— $1,854 $— 
Long-term debt32 79 5,243 4,247 207 99  — 
All other liabilities — 10 13  —  — 
Total liabilities$32 $79 $5,253 $4,260 $207 $99 $1,854 $— 
(1)For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For more information, see Note 10 – Commitments and Contingencies.
(2)At June 30, 2023 and December 31, 2022, loans and leases in the consolidated credit card trust included $3.7 billion and $3.3 billion of seller’s interest.
(3)The retained senior securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).
First Lien Mortgages  
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities The following table summarizes select information related to first-lien mortgage securitization trusts in which the Corporation held a variable interest at June 30, 2023 and December 31, 2022.
First-lien Mortgage VIEs
Residential Mortgage  
   Non-agency  
 AgencyPrimeSubprimeAlt-ACommercial Mortgage
(Dollars in millions)June 30
2023
December 31
2022
June 30
2023
December 31
2022
June 30
2023
December 31
2022
June 30
2023
December 31
2022
June 30
2023
December 31
2022
Unconsolidated VIEs          
Maximum loss exposure (1)
$8,549 $9,112 $88 $91 $680 $735 $6 $28 $1,460 $1,594 
On-balance sheet assets
          
Senior securities:
          
Trading account assets
$230 $232 $4 $$22 $25 $4 $26 $24 $91 
Debt securities carried at fair value
2,687 3,027  — 360 410  —  — 
Held-to-maturity securities
5,632 5,853  —  —  — 1,263 1,268 
All other assets — 3 21 25 2 52 101 
Total retained positions
$8,549 $9,112 $7 $$403 $460 $6 $28 $1,339 $1,460 
Principal balance outstanding (2)
$78,522 $81,644 $3,737 $3,973 $4,772 $5,034 $10,943 $11,568 $83,386 $85,101 
Consolidated VIEs          
Maximum loss exposure (1)
$1,909 $1,735 $ $— $ $78 $ $— $ $— 
On-balance sheet assets
          
Trading account assets
$1,909 $1,735 $ $— $ $78 $ $— $ $— 
Loans and leases, net —  —  —  —  — 
Total assets$1,909 $1,735 $ $— $ $78 $ $— $ $— 
Total liabilities$ $— $ $— $ $— $ $— $ $— 
(1)Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For more information, see Note 10 – Commitments and Contingencies and Note 14 – Fair Value Measurements.
(2)Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing the loans.
Other Variable Interest Entities  
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities The table below summarizes select information related to other VIEs in which the Corporation held a variable interest at June 30, 2023 and December 31, 2022.
Other VIEs
ConsolidatedUnconsolidatedTotalConsolidated
Unconsolidated (1)
Total (1)
(Dollars in millions)June 30, 2023December 31, 2022
Maximum loss exposure $1,879 $48,322 $50,201 $2,286 $47,477 $49,763 
On-balance sheet assets      
Trading account assets $402 $2,098 $2,500 $353 $2,187 $2,540 
Debt securities carried at fair value  157 157 — 473 473 
Loans and leases 1,659 14,533 16,192 2,086 14,243 16,329 
Allowance for loan and lease losses (1)(77)(78)(1)(99)(100)
All other assets 61 31,082 31,143 46 30,221 30,267 
Total$2,121 $47,793 $49,914 $2,484 $47,025 $49,509 
On-balance sheet liabilities      
Short-term borrowings$23 $ $23 $42 $— $42 
Long-term debt219  219 156 — 156 
All other liabilities  7,575 7,575 — 7,318 7,318 
Total $242 $7,575 $7,817 $198 $7,318 $7,516 
(1)Prior period has been revised to include unconsolidated CLOs.