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Loan Servicing
 12 Months Ended
Dec. 31, 2022
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 mortgages, 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:
(Dollars in millions)Dec 31, 2022Dec 31, 2021Dec 31, 2020
UPB of residential mortgage loan servicing portfolio$274,028 $246,727 $239,034 
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate
217,046 196,011 188,341 
Mortgage loans sold with recourse200 244 328 
Maximum recourse exposure from mortgage loans sold with recourse liability127 155 201 
Indemnification, recourse and repurchase reserves56 74 93 
As of / For the Year Ended December 31,
(Dollars in millions)		202220212020
UPB of residential mortgage loans sold from LHFS$26,643 $40,949 $48,366 
Pre-tax gains recognized on mortgage loans sold and held for sale69 446 1,034 
Servicing fees recognized from mortgage loans serviced for others630 592 630 
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
0.31 %0.31 %0.32 %
Weighted average interest rate on mortgage loans serviced for others3.48 3.44 3.84 

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:
(Dollars in millions)202220212020
Residential MSRs, carrying value, January 1$2,305 $1,778 $2,371 
Acquired321 355 — 
Additions428 640 653 
Change in fair value due to changes in valuation inputs or assumptions766 225 (497)
Realization of expected net servicing cash flows, passage of time and other(392)(693)(749)
Residential MSRs, carrying value, December 31$3,428 $2,305 $1,778 

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:
December 31, 2022December 31, 2021
RangeWeighted AverageRangeWeighted Average
(Dollars in millions)MinMaxMinMax
Prepayment speed8.6 %12.5 %9.0 %11.4 %15.3 %13.8 %
Effect on fair value of a 10% increase$(110)$(113)
Effect on fair value of a 20% increase(211)(216)
OAS1.2 %11.4 %4.0 %1.5 %10.7 %4.2 %
Effect on fair value of a 10% increase$(55)$(37)
Effect on fair value of a 20% increase(108)(73)
Composition of loans serviced for others:   
Fixed-rate residential mortgage loans99.5 %99.3 %
Adjustable-rate residential mortgage loans
0.5 0.7 
Total  100.0 %  100.0 %
Weighted average life  6.8 years  5.2 years

The sensitivity calculations above are hypothetical and should not be considered 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:
(Dollars in millions)Dec 31, 2022Dec 31, 2021
UPB of CRE mortgages serviced for others$36,622 $37,960 
CRE mortgages serviced for others covered by recourse provisions9,955 10,243 
Maximum recourse exposure from CRE mortgages sold with recourse liability2,861 2,958 
Recorded reserves related to recourse exposure17 16 
CRE mortgages originated during the year-to-date period7,779 9,380 
Commercial MSRs at fair value301 280 

Other Servicing Activities

The Company had $29 million and $48 million of other loan servicing rights at fair value as of December 31, 2022 and December 31, 2021, respectively.