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Loan Servicing
 12 Months Ended
Dec. 31, 2021
Transfers and Servicing [Abstract]  
Loan Servicing Loan Servicing
The Company acquires servicing rights, and retains servicing rights related to certain of its sales or securitizations of residential mortgages, commercial mortgage, and other consumer loans. Servicing rights are capitalized by the Company as Loan servicing rights on the Consolidated Balance Sheets. Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.

Residential Mortgage Activities
The following tables summarize residential mortgage servicing activities:
December 31,
(Dollars in millions)		202120202019
UPB of residential mortgage loan servicing portfolio$246,727 $239,034 $279,558 
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate
196,011 188,341 219,347 
Mortgage loans sold with recourse244 328 371 
Maximum recourse exposure from mortgage loans sold with recourse liability155 201 212 
Indemnification, recourse and repurchase reserves74 93 44 
As of / For the Year Ended December 31,
(Dollars in millions)		202120202019
UPB of residential mortgage loans sold from LHFS$40,949 $48,366 $16,646 
Pre-tax gains recognized on mortgage loans sold and held for sale446 1,034 122 
Servicing fees recognized from mortgage loans serviced for others592 630 265 
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
0.31 %0.32 %0.31 %
Weighted average interest rate on mortgage loans serviced for others3.44 3.84 4.04 

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)		202120202019
Residential MSRs, carrying value, January 1$1,778 $2,371 957 
Acquired / Merger355 — 1,506 
Additions640 653 171 
Change in fair value due to changes in valuation inputs or assumptions:
Prepayment speeds(2)(572)(131)
OAS227 75 32 
Realization of expected net servicing cash flows, passage of time and other(693)(749)(164)
Residential MSRs, carrying value, December 31$2,305 $1,778 $2,371 

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:
20212020
December 31,
(Dollars in millions)		RangeWeighted AverageRangeWeighted Average
MinMaxMinMax
Prepayment speed11.4 %15.3 %13.8 %12.8 %30.8 %15.4 %
Effect on fair value of a 10% increase$(113)$(89)
Effect on fair value of a 20% increase(216)(171)
OAS1.5 %10.7 %4.2 %3.5 %13.7 %7.3 %
Effect on fair value of a 10% increase$(37)$(45)
Effect on fair value of a 20% increase(73)(88)
Composition of loans serviced for others:   
Fixed-rate residential mortgage loans99.3 %98.8 %
Adjustable-rate residential mortgage loans
0.7 1.2 
Total  100.0 %  100.0 %
Weighted average life  5.2 years  4.8 years

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. See “Note 18. Fair Value Disclosures” for additional information on the valuation techniques used.
Commercial Mortgage Activities

The following table summarizes commercial mortgage servicing activities:
December 31,
(Dollars in millions)		20212020
UPB of CRE mortgages serviced for others$37,960 $36,670 
CRE mortgages serviced for others covered by recourse provisions10,243 9,019 
Maximum recourse exposure from CRE mortgages sold with recourse liability2,958 2,624 
Recorded reserves related to recourse exposure16 18 
CRE mortgages originated during the year-to-date period9,380 6,739 
Commercial MSRs at fair value280 245 

Other Servicing Activities

As of December 31, 2021, the Company had $48 million of other loan servicing rights at fair value. This portfolio relates to the acquisition of Service Finance, LLC.