Loan Sale and Servicing Activities and Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Loan Sale and Servicing Activities and Variable Interest Entities [Abstract]

The following table provides our loan sale and servicing activities:

Table 48: Loan Sale and Servicing Activities


In millions	Residential Mortgages		Commercial Mortgages (a)
Cash Flows - Three months ended September 30, 2022
Sales of loans and related securitization activity (b)	$	1,019		$	863
Repurchases of previously transferred loans (c)	$	49
Servicing fees (d)	$	99		$	51
Servicing advances recovered/(funded), net	$	11		$	11
Cash flows on mortgage-backed securities held (e)	$	797		$	15
Cash Flows - Three months ended September 30, 2021
Sales of loans and related securitization activity (b)	$	2,475		$	881
Repurchases of previously transferred loans (c)	$	45		$	103
Servicing fees (d)	$	105		$	43
Servicing advances recovered/(funded), net	$	(4)		$	28
Cash flows on mortgage-backed securities held (e)	$	2,041		$	18
Cash Flows - Nine months ended September 30, 2022
Sales of loans and related securitization activity (b)	$	4,367		$	2,702
Repurchases of previously transferred loans (c)	$	154		$	27
Servicing fees (d)	$	283		$	140
Servicing advances recovered/(funded), net	$	44		$	15
Cash flows on mortgage-backed securities held (e)	$	3,122		$	43
Cash Flows - Nine months ended September 30, 2021
Sales of loans and related securitization activity (b)	$	5,997		$	2,604
Repurchases of previously transferred loans (c)	$	189		$	145
Servicing fees (d)	$	270		$	119
Servicing advances recovered/(funded), net	$	8		$	(8)
Cash flows on mortgage-backed securities held (e)	$	7,256		$	66

(a)Represents both commercial mortgage loan transfers and servicing activities.

(b)Gains/losses recognized on sales of loans were insignificant for the periods presented.

(c)Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers.

(d)Includes contractually specified servicing fees, late charges and ancillary fees.

(e)Represents cash flows on securities where we transferred to and/or service loans for a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held were $19.1 billion, $17.6 billion and $15.9 billion in residential mortgage-backed securities and $0.7 billion, $0.6 billion and $0.6 billion in commercial mortgage-backed securities at September 30, 2022, December 31, 2021 and September 30, 2021.

Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans

Table 49: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others


In millions	Residential Mortgages		Commercial Mortgages (a)
September 30, 2022
Total principal balance	$	41,413	$	38,457
Delinquent loans (b)	$	354	$	1
December 31, 2021
Total principal balance	$	42,726	$	39,551
Delinquent loans (b)	$	569	$	42
Three months ended September 30, 2022
Net charge-offs (c)	$	1	$	9
Three months ended September 30, 2021
Net charge-offs (c)	$	1	$	2
Nine months ended September 30, 2022
Net charge-offs (c)	$	3	$	12
Nine months ended September 30, 2021
Net charge-offs (c)	$	4	$	180

(a)Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization.

(b)Serviced delinquent loans are 90 days or more past due or are in the process of foreclosure.

(c)Net charge-offs for residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage-backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.

Non-Consolidated VIEs

Table 50 : Non-Consolidated VIEs


In millions	PNC Risk of Loss (a)		Carrying Value of Assets Owned by PNC			Carrying Value of Liabilities Owned by PNC
September 30, 2022
Mortgage-backed securitizations (b)	$	20,233	$	20,237	(c)	$	1
Tax credit investments and other	4,186		4,019		(d)	1,961		(e)
Total	$	24,419	$	24,256		$	1,962
December 31, 2021
Mortgage-backed securitizations (b)	$	18,708	$	18,708	(c)	$	1
Tax credit investments and other	3,865		3,893		(d)	1,798		(e)
Total	$	22,573	$	22,601		$	1,799

(a)Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credit investments.

(b)Amounts reflect involvement with securitization SPEs where we transferred to and/or service loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings.

(c)Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet.

(d)Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet.

(e)Included in Deposits and Other liabilities on our Consolidated Balance Sheet.