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Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2019
Mortgage Servicing Rights  
Servicing Assets at Fair Value [Line Items]  
Servicing Asset at Amortized Cost The unpaid principal balance of mortgage loans serviced for others, as of December 31, 2019 and 2018, is listed below:
TABLE 7.1
December 31
2019

2018
(in millions)
 
 
 
Mortgage loans sold with servicing retained
$
4,686

 
$
3,968

The following table summarizes activity relating to mortgage loans sold with servicing retained:
TABLE 7.2
Year Ended December 31
2019
 
2018
 
2017
(in millions)
 
 
 
 
 
Mortgage loans sold with servicing retained
$
1,381

 
$
1,060

 
$
1,769

Pretax gains resulting from above loan sales (1)
32

 
19

 
22

Mortgage servicing fees (1)
11

 
9

 
8

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.
Following is a summary activity relating to MSRs:
TABLE 7.3
Year Ended December 31
2019
 
2018
 
2017
(in millions)
 
 
 
 
 
Balance at beginning of period
$
37

 
$
29

 
$
14

Fair value of MSRs acquired
—

 
—

 
8

Additions
14

 
13

 
11

Payoffs and curtailments
(5
)
 
(2
)
 
(2
)
Impairment charge
(1
)
 
(1
)
 
—

Amortization
(2
)
 
(2
)
 
(2
)
Balance at end of period
$
43

 
$
37

 
$
29

Fair value, beginning of period
$
41

 
$
32

 
$
18

Fair value, end of period
45

 
41

 
32
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 7.4
December 31
2019
 
2018
(dollars in millions)
 
 
 
Weighted average life (months)
78.9

 
82.2

Constant prepayment rate (annualized)
10.6
%
 
10.1
%
Discount rate
9.7
%
 
9.7
%
Effect on fair value due to change in interest rates:
 
 
 
+0.25%
$
3

 
$
3

+0.50%
5

 
5

-0.25%
(3
)
 
(3
)
-0.50%
(5
)
 
(6
)
SBA-Guaranteed Loan Servicing  
Servicing Assets at Fair Value [Line Items]  
Servicing Asset at Amortized Cost The unpaid principal balance of SBA-guaranteed loans serviced for investors, as of December 31, 2019 and December 31, 2018, was as follows:
TABLE 7.5
December 31
2019
 
2018
(in millions)
 
 
 
SBA loans sold to investors with servicing retained
$
225

 
$
283

The following table summarizes activity relating to SBA loans sold with servicing retained:
TABLE 7.6
Year Ended December 31
2019
 
2018
 
2017
(in millions)
 
 
 
 
 
SBA loans sold with servicing retained
$
23

 
$
41

 
$
54

Pretax gains resulting from above loan sales (1)
2

 
4

 
2

SBA servicing fees (1)
2

 
3

 
2

(1) Recorded in non-interest income.
Following is a summary of the activity in SBA servicing rights: 
TABLE 7.7
Year Ended December 31
2019
 
2018
 
2017
(in millions)
 
 
 
 
 
Balance at beginning of period
$
4

 
$
5

 
$
—

Fair value of servicing rights acquired
—

 
—

 
5

Additions
—

 
1

 
1

Payoffs, curtailments and amortization
(1
)
 
(1
)
 
(1
)
Impairment (charge) / recovery
—

 
(1
)
 
—

Balance at end of period
$
3

 
$
4

 
$
5

Fair value, beginning of period
$
4

 
$
5

 
$
—

Fair value, end of period
3

 
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 7.8
December 31
2019
 
2018
(dollars in millions)
 
 
 
Weighted average life (months)
42.0

 
52.2

Constant prepayment rate
16.8
%
 
12.5
%
Discount rate
16.2
%
 
19.4
%
Decline in fair value due to change in interest rates:
 
 
 
1% adverse change
$
(0.1
)
 
$
(0.1
)
2% adverse change
(0.1
)
 
(0.2
)
Decline in fair value due to change in constant prepayment rates:
 
 
 
10% adverse change
(0.1
)
 
(0.2
)
20% adverse change
(0.3
)
 
(0.3
)