Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Mar 31, 2024			Dec 31, 2023
UPB of residential mortgage loan servicing portfolio	$	265,890		$	269,068
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	210,635			213,399
Mortgage loans sold with recourse	167			173
Maximum recourse exposure from mortgage loans sold with recourse liability	105			109
Indemnification, recourse and repurchase reserves	49			52
As of / For the Three Months Ended March 31, (Dollars in millions)	2024			2023
UPB of residential mortgage loans sold from LHFS	$	1,763		$	2,507
Pre-tax gains recognized on mortgage loans sold and held for sale	15			16
Servicing fees recognized from mortgage loans serviced for others	147			163
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.28		%	0.27		%
Weighted average interest rate on mortgage loans serviced for others	3.59			3.52

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)	2024		2023
Residential MSRs, carrying value, January 1	$	3,088	$	3,428
Additions	30		44
Sales	(1)		(428)
Change in fair value due to changes in valuation inputs or assumptions(1)	77		(1)
Realization of expected net servicing cash flows, passage of time, and other	(60)		(57)
Residential MSRs, carrying value, March 31	$	3,134	$	2,986

(1)The three months ended March 31, 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:

	March 31, 2024							December 31, 2023
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	6.5	%	17.3	%	7.3		%	6.7	%	18.2	%	7.5		%
Effect on fair value of a 10% increase					$	(82)						$	(82)
Effect on fair value of a 20% increase					(158)							(160)
OAS	2.4	%	11.9	%	4.5		%	2.2	%	12.0	%	4.6		%
Effect on fair value of a 10% increase					$	(60)						$	(60)
Effect on fair value of a 20% increase					(117)							(118)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.6		%					99.6		%
Adjustable-rate residential mortgage loans					0.4							0.4
Total					100.0		%					100.0		%
Weighted average life					7.6 years							7.5 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)	Mar 31, 2024		Dec 31, 2023
UPB of CRE mortgages serviced for others	$	29,075	$	31,681
CRE mortgages serviced for others covered by recourse provisions	9,656		9,661
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,813		2,813
Recorded reserves related to recourse exposure	14		16
CRE mortgages originated during the year-to-date period	276		2,989
Commercial MSRs at fair value	268		272