Mortgage Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2015

Changes in Carrying Amount of Mortgage Servicing Assets

We originate and periodically sell commercial mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans for other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Changes in the carrying amount of mortgage servicing assets are summarized as follows:


	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		10			6
Purchases		15			7
Amortization		(24	)		(25	)

Balance at end of period	$	324		$	320

Fair value at end of period	$	423		$	373

Schedule of Range and Weighted-Average of Significant Unobservable Inputs

The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2015, and March 31, 2014, along with the valuation techniques, are shown in the following table:


March 31, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.60 - 13.10% (4.80%)
		Expected defaults		1.00 - 3.00% (1.80%)
		Residual cash flows discount rate		7.00 - 15.00% (7.80%)
		Escrow earn rate		0.70 - 3.10% (1.90%)
		Servicing cost		$150 - $2,735 ($1,059)
		Loan assumption rate		0.20 - 3.00% (1.43%)
		Percentage late		0.00 - 2.00% (0.33%)

March 31, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.90 - 11.30% (4.90%)
		Expected defaults		1.00 - 3.00% (2.00%)
		Residual cash flows discount rate		7.00 - 14.00% (7.80%)
		Escrow earn rate		0.40 - 3.10% (1.80%)
		Servicing cost		$150 - $2,600 ($963)
		Loan assumption rate		0.20 - 3.00% (1.58%)
		Percentage late		0.00 - 2.00% (0.33%)