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Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2017
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.
 
 
As Of / For The Year Ended December 31,
(Dollars in millions)
 
2017
 
2016
 
2015
UPB of residential mortgage and home equity loan servicing portfolio
 
$
118,424

 
$
121,639

 
$
122,169

UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate
 
89,124

 
90,325

 
91,132

Mortgage loans sold with recourse
 
490

 
578

 
702

Maximum recourse exposure from mortgage loans sold with recourse liability
 
251

 
282

 
326

Indemnification, recourse and repurchase reserves
 
37

 
40

 
79

UPB of residential mortgage loans sold
 
12,423

 
15,675

 
14,764

Pre-tax gains recognized on mortgage loans sold and held for sale
 
153

 
139

 
148

Servicing fees recognized from mortgage loans serviced for others
 
261

 
268

 
273

Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
 
0.28
%
 
0.28
%
 
0.29
%
Weighted average interest rate on mortgage loans serviced for others
 
4.00

 
4.03

 
4.12
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,
(Dollars in millions)
 
2017
 
2016
 
2015
Carrying value, beginning of year
 
$
915

 
$
880

 
$
844

Additions
 
123

 
146

 
156

Change in fair value due to changes in valuation inputs or assumptions:
 
 
 
 
 
 
Prepayment speeds
 
(42
)
 
13

 
91

Weighted average OAS
 
46

 
10

 
(52
)
Servicing costs
 
9

 
2

 
(25
)
Realization of expected net servicing cash flows, passage of time and other
 
(137
)
 
(136
)
 
(134
)
Carrying value, end of year
 
$
914

 
$
915

 
$
880

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

 
$
32

 
$
32
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, 2017
 
December 31, 2016
 
 
Range
 
Weighted Average
 
Range
 
Weighted Average
(Dollars in millions)
 
Min
 
Max
 
 
Min
 
Max
 
Prepayment speed
 
7.1
%
 
10.1
%
 
9.1
%
 
7.5
%
 
8.4
%
 
8.1
%
Effect on fair value of a 10% increase
 
 
 
 
 
$
(31
)
 
 
 
 
 
$
(28
)
Effect on fair value of a 20% increase
 
 
 
 
 
(60
)
 
 
 
 
 
(54
)
 
 
 
 
 
 
 
 
 
 
 
 
 
OAS
 
8.4
%
 
8.9
%
 
8.5
%
 
9.8
%
 
10.2
%
 
10.0
%
Effect on fair value of a 10% increase
 
 
 
 
 
$
(28
)
 
 
 
 
 
$
(33
)
Effect on fair value of a 20% increase
 
 
 
 
 
(54
)
 
 
 
 
 
(64
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition of loans serviced for others:
 
 

 
 

 
 

 
 

 
 

 
 

Fixed-rate residential mortgage loans
 
 

 
 

 
99.1
%
 
 

 
 

 
99.1
%
Adjustable-rate residential mortgage loans
 
 

 
 

 
0.9

 
 

 
 

 
0.9

Total
 
 

 
 

 
100.0
%
 
 

 
 

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average life
 
 

 
 

 
6.4 years
 
 

 
 

 
7.0 years
Summary of Commercial Mortgage Banking Activities
The following table summarizes commercial mortgage banking activities for the periods presented:
 
 
December 31,
(Dollars in millions)
 
2017
 
2016
UPB of CRE mortgages serviced for others
 
$
28,441

 
$
29,333

CRE mortgages serviced for others covered by recourse provisions
 
4,153

 
4,240

Maximum recourse exposure from CRE mortgages sold with recourse liability
 
1,218

 
1,272

Recorded reserves related to recourse exposure
 
5

 
7

Originated CRE mortgages during the year
 
6,753

 
7,145

Commercial MSRs at fair value
 
142

 
137