Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2022

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Mar 31, 2022			Dec 31, 2021
UPB of residential mortgage loan servicing portfolio	$	246,664		$	246,727
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	195,737			196,011
Mortgage loans sold with recourse	221			244
Maximum recourse exposure from mortgage loans sold with recourse liability	137			155
Indemnification, recourse and repurchase reserves	73			74
As of / For the Three Months Ended March 31, (Dollars in millions)	2022			2021
UPB of residential mortgage loans sold from LHFS	$	8,818		$	9,489
Pre-tax gains recognized on mortgage loans sold and held for sale	39			119
Servicing fees recognized from mortgage loans serviced for others	145			141
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.31		%	0.31		%
Weighted average interest rate on mortgage loans serviced for others	3.41			3.76

Analysis of Activity in Residential MSRs

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:

Three Months Ended March 31, (Dollars in millions)	2022		2021
Residential MSRs, carrying value, January 1	$	2,305	$	1,778
Additions	147		174
Change in fair value due to changes in valuation inputs or assumptions:
Prepayment speeds	376		219
OAS	(26)		141
Realization of expected net servicing cash flows, passage of time and other	(110)		(209)
Residential MSRs, carrying value, March 31	$	2,692	$	2,103

Residential MSRs Sensitivity

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:

	March 31, 2022							December 31, 2021
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	10.0	%	12.8	%	11.1		%	11.4	%	15.3	%	13.8		%
Effect on fair value of a 10% increase					$	(104)						$	(113)
Effect on fair value of a 20% increase					(199)							(216)
OAS	1.2	%	11.2	%	4.3		%	1.5	%	10.7	%	4.2		%
Effect on fair value of a 10% increase					$	(44)						$	(37)
Effect on fair value of a 20% increase					(87)							(73)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.3		%					99.3		%
Adjustable-rate residential mortgage loans					0.7							0.7
Total					100.0		%					100.0		%
Weighted average life					6.0 years							5.2 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

	As of/Year-to-Date Ended
(Dollars in millions)	Mar 31, 2022		Dec 31, 2021
UPB of CRE mortgages serviced for others	$	37,397	$	37,960
CRE mortgages serviced for others covered by recourse provisions	9,938		10,243
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,861		2,958
Recorded reserves related to recourse exposure	15		16
CRE mortgages originated during the year-to-date period	1,557		9,380
Commercial MSRs at fair value	280		280

Other Servicing Activities

The Company had $41 million and $48 million of other loan servicing rights at fair value as of March 31, 2022 and December 31, 2021, respectively.