Loan Servicing (Tables)

6 Months Ended

Jun. 30, 2022

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Jun 30, 2022			Dec 31, 2021
UPB of residential mortgage loan servicing portfolio	$	262,845		$	246,727
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	209,504			196,011
Mortgage loans sold with recourse	214			244
Maximum recourse exposure from mortgage loans sold with recourse liability	135			155
Indemnification, recourse and repurchase reserves	58			74
As of / For the Six Months Ended June 30, (Dollars in millions)	2022			2021
UPB of residential mortgage loans sold from LHFS	$	15,907		$	22,020
Pre-tax gains recognized on mortgage loans sold and held for sale	66			223
Servicing fees recognized from mortgage loans serviced for others	297			280
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.30		%	0.31		%
Weighted average interest rate on mortgage loans serviced for others	3.42			3.66

Analysis of Activity in Residential MSRs

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

(Dollars in millions)	2022		2021
Residential MSRs, carrying value, January 1	$	2,305	$	1,778
Acquired	195		52
Additions	257		347
Change in fair value due to changes in valuation inputs or assumptions:
Prepayment speeds	630		20
OAS	(24)		153
Realization of expected net servicing cash flows, passage of time and other	(215)		(387)
Residential MSRs, carrying value, June 30	$	3,148	$	1,963

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:

	June 30, 2022							December 31, 2021
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	8.9	%	10.7	%	9.4		%	11.4	%	15.3	%	13.8		%
Effect on fair value of a 10% increase					$	(109)						$	(113)
Effect on fair value of a 20% increase					(210)							(216)
OAS	1.3	%	11.6	%	4.3		%	1.5	%	10.7	%	4.2		%
Effect on fair value of a 10% increase					$	(55)						$	(37)
Effect on fair value of a 20% increase					(107)							(73)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.4		%					99.3		%
Adjustable-rate residential mortgage loans					0.6							0.7
Total					100.0		%					100.0		%
Weighted average life					6.7 years							5.2 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)	Jun 30, 2022		Dec 31, 2021
UPB of CRE mortgages serviced for others	$	36,759	$	37,960
CRE mortgages serviced for others covered by recourse provisions	9,889		10,243
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,845		2,958
Recorded reserves related to recourse exposure	15		16
CRE mortgages originated during the year-to-date period	3,460		9,380
Commercial MSRs at fair value	283		280

Other Servicing Activities

The Company had $35 million and $48 million of other loan servicing rights at fair value as of June 30, 2022 and December 31, 2021, respectively.