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Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2016
Transfers and Servicing [Abstract]  
Summary of Residential Mortgage Banking Activities
The following tables summarize residential mortgage banking activities. BB&T manages its own residential mortgage loans, including PCI loans.
 
 
December 31,
 
 
2016
 
2015
 
 
(Dollars in millions)
UPB of residential mortgage and home equity loan servicing portfolio
 
$
121,639

 
$
122,169

UPB of residential mortgage loans serviced for others (primarily agency conforming fixed rate)
 
90,325

 
91,132

Mortgage loans sold with recourse
 
578

 
702

Maximum recourse exposure from mortgage loans sold with recourse liability
 
282

 
326

Indemnification, recourse and repurchase reserves
 
40

 
79

FHA-insured mortgage loan reserve
 
—

 
85
Loan Servicing Activity and Data
 
 
As Of / For The Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(Dollars in millions)
UPB of residential mortgage loans sold from the LHFS portfolio
 
$
15,675

 
$
14,764

 
$
13,400

Pre-tax gains recognized on mortgage loans sold and held for sale
 
139

 
148

 
110

Servicing fees recognized from mortgage loans serviced for others
 
268

 
273

 
275

Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
 
0.28
%
 
0.29
%
 
0.29
%
Weighted average interest rate on mortgage loans serviced for others
 
4.03

 
4.12

 
4.20
Analysis of Activity in Residential MSRs
The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(Dollars in millions)
Carrying value, beginning of year
 
$
880

 
$
844

 
$
1,047

Additions
 
146

 
156

 
141

Change in fair value due to changes in valuation inputs or assumptions:
 
 
 
 

 
 
Prepayment speeds
 
13

 
91

 
(219
)
Weighted average OAS
 
10

 
(52
)
 
—

Servicing costs
 
2

 
(25
)
 
(2
)
Realization of expected net servicing cash flows, passage of time and other
 
(136
)
 
(134
)
 
(123
)
Carrying value, end of year
 
$
915

 
$
880

 
$
844

 
 
 
 
 
 
 
Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in fair value
 
$
32

 
$
32

 
$
251
Residential MSRs Sensitivity
The sensitivity of the fair value of the residential MSRs to changes in key assumptions is included in the accompanying table:
 
 
December 31, 2016
 
December 31, 2015
 
 
Range
 
Weighted Average
 
Range
 
Weighted Average
 
 
Min
 
Max
 
 
Min
 
Max
 
 
 
(Dollars in millions)
Prepayment speed
 
7.5
%
 
8.4
%
 
8.1
%
 
8.1
%
 
9.0
%
 
8.7
%
Effect on fair value of a 10% increase
 
 
 
 
 
$
(28
)
 
 
 
 
 
$
(29
)
Effect on fair value of a 20% increase
 
 
 
 
 
(54
)
 
 
 
 
 
(56
)
 
 
 
 
 
 
 
 
 
 
 
 
 
OAS
 
9.8
%
 
10.2
%
 
10.0
%
 
10.3
%
 
10.6
%
 
10.4
%
Effect on fair value of a 10% increase
 
 

 
 

 
$
(33
)
 
 

 
 

 
$
(33
)
Effect on fair value of a 20% increase
 
 

 
 

 
(64
)
 
 

 
 

 
(63
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition of loans serviced for others:
 
 

 
 

 
 

 
 

 
 

 
 

Fixed-rate residential mortgage loans
 
 

 
 

 
99.1
%
 
 

 
 

 
99.2
%
Adjustable-rate residential mortgage loans
 
 

 
 

 
0.9

 
 

 
 

 
0.8

Total
 
 

 
 

 
100.0
%
 
 

 
 

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average life (in years)
 
 

 
 

 
7.0

 
 

 
 

 
6.8
Summary of Commercial Mortgage Banking Activities
The following table summarizes commercial mortgage banking activities for the periods presented:
 
 
December 31,
 
 
2016
 
2015
 
 
(Dollars in millions)
UPB of CRE mortgages serviced for others
 
$
29,333

 
$
28,163

CRE mortgages serviced for others covered by recourse provisions
 
4,240

 
4,198

Maximum recourse exposure from CRE mortgages sold with recourse liability
 
1,272

 
1,259

Recorded reserves related to recourse exposure
 
7

 
7

Originated CRE mortgages during the year
 
7,145

 
7,012

Commercial MSRs at fair value
 
137

 
—