Loan Servicing (Tables)

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Sep 30, 2023			Dec 31, 2022
UPB of residential mortgage loan servicing portfolio	$	271,632		$	274,028
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	214,953			217,046
Mortgage loans sold with recourse	180			200
Maximum recourse exposure from mortgage loans sold with recourse liability	114			127
Indemnification, recourse and repurchase reserves	52			56
As of / For the Nine Months Ended September 30, (Dollars in millions)	2023			2022
UPB of residential mortgage loans sold from LHFS	$	10,643		$	22,971
Pre-tax gains recognized on mortgage loans sold and held for sale	49			62
Servicing fees recognized from mortgage loans serviced for others	517			462
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.27		%	0.30		%
Weighted average interest rate on mortgage loans serviced for others	3.51			3.45

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)	2023		2022
Residential MSRs, carrying value, January 1	$	3,428	$	2,305
Acquired	123		321
Additions	199		372
Sales	(531)		—
Change in fair value due to changes in valuation inputs or assumptions(1)	207		771
Realization of expected net servicing cash flows, passage of time, and other	(204)		(306)
Residential MSRs, carrying value, September 30	$	3,222	$	3,463

(1)The nine months ended September 30, 2023 includes realized gains on the portfolio sale of excess servicing.

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:

	September 30, 2023							December 31, 2022
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	6.6	%	11.3	%	7.1		%	8.6	%	12.5	%	9.0		%
Effect on fair value of a 10% increase					$	(83)						$	(110)
Effect on fair value of a 20% increase					(160)							(211)
OAS	2.3	%	12.3	%	4.8		%	1.2	%	11.4	%	4.0		%
Effect on fair value of a 10% increase					$	(63)						$	(55)
Effect on fair value of a 20% increase					(124)							(108)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.6		%					99.5		%
Adjustable-rate residential mortgage loans					0.4							0.5
Total					100.0		%					100.0		%
Weighted average life					7.7 years							6.8 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)	Sep 30, 2023		Dec 31, 2022
UPB of CRE mortgages serviced for others	$	34,179	$	36,622
CRE mortgages serviced for others covered by recourse provisions	9,718		9,955
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,827		2,861
Recorded reserves related to recourse exposure	17		17
CRE mortgages originated during the year-to-date period	2,866		7,779
Commercial MSRs at fair value	295		301