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Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2018
Transfers and Servicing [Abstract]  
Summary of Residential Mortgage Banking Activities
The following tables summarize residential mortgage banking activities:
December 31,
(Dollars in millions)
 
2018
 
2017
 
2016
UPB of residential mortgage loan servicing portfolio
 
$
118,605

 
$
118,424

 
$
121,639

UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate
 
87,270

 
89,124

 
90,325

Mortgage loans sold with recourse
 
419

 
490

 
578

Maximum recourse exposure from mortgage loans sold with recourse liability
 
223

 
251

 
282

Indemnification, recourse and repurchase reserves
 
24

 
37

 
40

 
 


 


 
 
As of / For the Year Ended December 31,
(Dollars in millions)
 
2018
 
2017
 
2016
UPB of residential mortgage loans sold from LHFS
 
$
10,094

 
$
12,423

 
$
15,675

Pre-tax gains recognized on mortgage loans sold and held for sale
 
116

 
153

 
139

Servicing fees recognized from mortgage loans serviced for others
 
256

 
261

 
268

Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
 
0.28
%
 
0.28
%
 
0.28
%
Weighted average interest rate on mortgage loans serviced for others
 
4.04

 
4.00

 
4.03
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)
 
2018
 
2017
 
2016
Residential MSRs, carrying value, January 1
 
$
914

 
$
915

 
880

Additions
 
116

 
123

 
146

Change in fair value due to changes in valuation inputs or assumptions:
 
 
 
 
 
 
Prepayment speeds
 
(12
)
 
(42
)
 
13

OAS
 
57

 
46

 
10

Servicing costs
 
22

 
9

 
2

Realization of expected net servicing cash flows, passage of time and other
 
(140
)
 
(137
)
 
(136
)
Residential MSRs, carrying value, December 31
 
$
957

 
$
914

 
$
915

Gains (losses) on derivative financial instruments used to mitigate the income statement effect of changes in residential MSR fair value
 
$
(63
)
 
$
—

 
32
Residential MSRs Sensitivity
The sensitivity of the fair value of the residential MSRs to changes in key assumptions is presented in the following table:
 
 
2018
 
2017
December 31,
(Dollars in millions)
 
Range
 
Weighted Average
 
Range
 
Weighted Average
 
Min
 
Max
 
 
Min
 
Max
 
Prepayment speed
 
9.1
%
 
10.5
%
 
9.9
%
 
7.1
%
 
10.1
%
 
9.1
%
Effect on fair value of a 10% increase
 
 
 
 
 
$
(34
)
 
 
 
 
 
$
(31
)
Effect on fair value of a 20% increase
 
 
 
 
 
(66
)
 
 
 
 
 
(60
)
OAS
 
6.6
%
 
8.3
%
 
7.0
%
 
8.4
%
 
8.9
%
 
8.5
%
Effect on fair value of a 10% increase
 
 
 
 
 
$
(24
)
 
 
 
 
 
$
(28
)
Effect on fair value of a 20% increase
 
 
 
 
 
(47
)
 
 
 
 
 
(54
)
Composition of loans serviced for others:
 
 
 
 
 
 
 
 
 
 
Fixed-rate residential mortgage loans
 
 
 
 
 
99.2
%
 
 
 
 
 
99.1
%
Adjustable-rate residential mortgage loans
 
 
 
 
 
0.8

 
 
 
 
 
0.9

Total
 
 

 
 

 
100.0
%
 
 
 
 
 
100.0
%
Weighted average life
 
 

 
 

 
6.1 years

 
 
 
 
 
6.4 years
Summary of Commercial Mortgage Banking Activities
The following table summarizes commercial mortgage banking activities for the periods presented:
December 31,
(Dollars in millions)
2018
 
2017
UPB of CRE mortgages serviced for others
$
27,761

 
$
28,441

CRE mortgages serviced for others covered by recourse provisions
4,699

 
4,153

Maximum recourse exposure from CRE mortgages sold with recourse liability
1,317

 
1,218

Recorded reserves related to recourse exposure
6

 
5

CRE mortgages originated during the year-to-date period
7,072

 
6,753

Commercial MSRs at fair value
151

 
142