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LOAN SERVICING (Tables)

3 Months Ended

Mar. 31, 2019

Servicing Assets at Fair Value [Line Items]

The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 6.1



(in millions)	March 31, 2019		December 31, 2018
Mortgage loans sold with servicing retained	$	4,061	$	3,968

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 6.2



	Three Months Ended March 31,
(in millions)	2019		2018
Mortgage loans sold with servicing retained	$	177	$	237
Pretax gains resulting from above loan sales ⁽¹⁾	4		4
Mortgage servicing fees ⁽¹⁾	2		2

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of the MSR activity:

TABLE 6.3



	Three Months Ended March 31,
(in millions)	2019			2018
Balance at beginning of period	$	37		$	29
Additions	2			3
Payoffs and curtailments	(1		)	—
Impairment charge	(1		)	—
Amortization	(1		)	(1		)
Balance at end of period	$	36		$	31
Fair value, beginning of period	$	41		$	32
Fair value, end of period	40			36

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 6.4



(dollars in millions)	March 31, 2019			December 31, 2018
Weighted average life (months)	79.4			82.2
Constant prepayment rate (annualized)	10.4		%	10.1		%
Discount rate	9.7		%	9.7		%
Effect on fair value due to change in interest rates:
+0.25%	$	2		$	3
+0.50%	5			5
-0.25%	(2		)	(3		)
-0.50%	(5		)	(6		)

SBA-Guaranteed Loan Servicing [Member]

Servicing Assets at Fair Value [Line Items]

Servicing Asset at Amortized Cost

The unpaid principal balance of SBA-guaranteed loans serviced for investors was as follows:

TABLE 6.5



(in millions)	March 31, 2019		December 31, 2018
SBA loans sold to investors with servicing retained	$	264	$	283

The following table summarizes activity relating to SBA loans sold with servicing retained:

TABLE 6.6



	Three Months Ended March 31,
(in millions)	2019		2018
SBA loans sold with servicing retained	$	6	$	12
Pretax gains resulting from above loan sales⁽¹⁾	—		1
SBA servicing fees ⁽¹⁾	1		1

(1) Recorded in non-interest income.

Following is a summary of the activity in SBA servicing rights:

TABLE 6.7



	Three Months Ended March 31,
(in millions)	2019		2018
Balance at beginning of period	$	4	$	5
Balance at end of period	$	4	$	5
Fair value, beginning of period	$	4	$	5
Fair value, end of period	4		5

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of key assumptions and the sensitivity of the SBA servicing rights to changes in these assumptions. The declines in fair values were immaterial in the scenarios presented.

TABLE 6.8



	March 31, 2019										December 31, 2018
			Decline in fair value due to										Decline in fair value due to
(dollars in millions)	Actual		10% adverse change		20% adverse change		1% adverse change		2% adverse change		Actual		10% adverse change		20% adverse change		1% adverse change		2% adverse change
Weighted-average life (months)	49.8										52.2
Constant prepayment rate (annualized)	13.3	%	$	—	$	—	$	—	$	—	12.5	%	$	—	$	—	$	—	$	—
Discount rate	17.5		—		—		—		—		19.4		—		—		—		—