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

6 Months Ended

Jun. 30, 2023

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

The following table provides our loan sale and servicing activities:

Table 51: Loan Sale and Servicing Activities


In millions	Residential Mortgages		Commercial Mortgages (a)
Cash Flows - Three months ended June 30, 2023
Sales of loans and related securitization activity (b)	$	655		$	1,202
Repurchases of previously transferred loans (c)	$	22
Servicing fees (d)	$	127		$	49
Servicing advances recovered/(funded), net	$	11		$	(15)
Cash flows on mortgage-backed securities held (e)	$	695		$	18
Cash Flows - Three months ended June 30, 2022
Sales of loans and related securitization activity (b)	$	1,454		$	929
Repurchases of previously transferred loans (c)	$	57
Servicing fees (d)	$	91		$	47
Servicing advances recovered/(funded), net	$	1		$	(17)
Cash flows on mortgage-backed securities held (e)	$	1,029		$	14
Cash Flows - Six months ended June 30, 2023
Sales of loans and related securitization activity (b)	$	1,171		$	2,156
Repurchases of previously transferred loans (c)	$	51		$	9
Servicing fees (d)	$	255		$	95
Servicing advances recovered/(funded), net	$	39		$	(64)
Cash flows on mortgage-backed securities held (e)	$	1,298		$	30
Cash Flows - Six months ended June 30, 2022
Sales of loans and related securitization activity (b)	$	3,348		$	1,839
Repurchases of previously transferred loans (c)	$	105		$	27
Servicing fees (d)	$	184		$	89
Servicing advances recovered/(funded), net	$	33		$	4
Cash flows on mortgage-backed securities held (e)	$	2,325		$	28

(a)Represents both commercial mortgage loan transfer 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 $21.2 billion, $21.4 billion and $19.1 billion in residential mortgage-backed securities and $0.7 billion, $0.7 billion and $0.8 billion in commercial mortgage-backed securities at June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

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

Table 52: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others


In millions	Residential Mortgages		Commercial Mortgages (a)
June 30, 2023
Total principal balance	$	39,893	$	39,306
Delinquent loans (b)	$	317
December 31, 2022
Total principal balance	$	41,031	$	57,974
Delinquent loans (b)	$	346


Three months ended June 30, 2022 (c)
Net charge-offs (d)	$	1	$	3




Six months ended June 30, 2023
Net charge-offs (d)	$	2	$	4
Six months ended June 30, 2022
Net charge-offs (d)	$	2	$	3

(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 process of foreclosure.

(c)There were no net charge-offs for Residential or Commercial mortgages for the three months ended June 30, 2023.

(d)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

The following table provides a summary of non-consolidated VIEs with which we have significant continuing involvement but are not the primary beneficiary. We have excluded certain transactions with non-consolidated VIEs from the balances presented in Table 53 where we have determined that our continuing involvement is insignificant. We do not consider our continuing involvement to be significant when it relates to a VIE where we only invest in securities issued by the VIE and were not involved in the design of the VIE or where no transfers have occurred between us and the VIE. In addition, where we only have lending arrangements in the normal course of business with entities that could be VIEs, we have excluded these transactions with non-consolidated entities from the balances presented in Table 53. These loans are included as part of the credit quality disclosures that we make in Note 3 Loans and Related Allowance for Credit Losses.

Table 53: Non-Consolidated VIEs


In millions	PNC Risk of Loss (a)		Carrying Value of Assets Owned by PNC			Carrying Value of Liabilities Owned by PNC
June 30, 2023
Mortgage-backed securitizations (b)	$	22,732	$	22,735	(c)	$	1
Tax credit investments and other	4,424		4,263		(d)	2,047		(e)
Total	$	27,156	$	26,998		$	2,048
December 31, 2022
Mortgage-backed securitizations (b)	$	22,666	$	22,670	(c)	$	1
Tax credit investments and other	4,411		4,240		(d)	2,063		(e)
Total	$	27,077	$	26,910		$	2,064

(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.