Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Dec 31, 2023			Dec 31, 2022			Dec 31, 2021
UPB of residential mortgage loan servicing portfolio	$	269,068		$	274,028		$	246,727
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	213,399			217,046			196,011
Mortgage loans sold with recourse	173			200			244
Maximum recourse exposure from mortgage loans sold with recourse liability	109			127			155
Indemnification, recourse and repurchase reserves	52			56			74
As of / For the Year Ended December 31, (Dollars in millions)	2023			2022			2021
UPB of residential mortgage loans sold from LHFS	$	13,669		$	26,643		$	40,949
Pre-tax gains recognized on mortgage loans sold and held for sale	60			69			446
Servicing fees recognized from mortgage loans serviced for others	617			630			592
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.27		%	0.31		%	0.31		%
Weighted average interest rate on mortgage loans serviced for others	3.56			3.48			3.44

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		2021
Residential MSRs, carrying value, January 1	$	3,428	$	2,305	$	1,778
Acquired	123		321		355
Additions	249		428		640
Sales	(531)		—		—
Change in fair value due to changes in valuation inputs or assumptions(1)	88		766		225
Realization of expected net servicing cash flows, passage of time, and other	(269)		(392)		(693)
Residential MSRs, carrying value, December 31	$	3,088	$	3,428	$	2,305

(1)The year ended December 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:

	December 31, 2023							December 31, 2022
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	6.7	%	18.2	%	7.5		%	8.6	%	12.5	%	9.0		%
Effect on fair value of a 10% increase					$	(82)						$	(110)
Effect on fair value of a 20% increase					(160)							(211)
OAS	2.2	%	12.0	%	4.6		%	1.2	%	11.4	%	4.0		%
Effect on fair value of a 10% increase					$	(60)						$	(55)
Effect on fair value of a 20% increase					(118)							(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					7.5 years							6.8 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)	Dec 31, 2023		Dec 31, 2022
UPB of CRE mortgages serviced for others	$	31,681	$	36,622
CRE mortgages serviced for others covered by recourse provisions	9,661		9,955
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,813		2,861
Recorded reserves related to recourse exposure	16		17
CRE mortgages originated during the year-to-date period	2,989		7,779
Commercial MSRs at fair value	272		301