MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2020

Transfers and Servicing [Abstract]

Summarizes activity relating to loans securitized sold with servicing retained

The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month and nine-month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollar amounts in millions)	2020		2019		2020		2019
Residential mortgage loans sold with servicing retained	$	2,391	$	1,238	$	6,106	$	3,025
Pretax gains resulting from above loan sales (1)	98		26		196		61

(1)Recorded in mortgage banking income

Summarizes activity relating to loans sold with servicing retained using the fair value method

The following table summarizes the changes in MSRs recorded using the fair value method for the three-month and nine-month periods ended September 30, 2020 and 2019 (1):

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollar amounts in millions)	2020		2019 (1)		2020		2019 (1)
Fair value, beginning of period	$	172	$	9	$	7	$	10
Fair value election for servicing assets previously measured using the amortized method	—		—		205		—
New servicing assets created	30		—		70		—
Change in fair value during the period due to:
Time decay (2)	(2)		—		(6)		—
Payoffs (3)	(13)		—		(29)		—
Changes in valuation inputs or assumptions (4)	4		(1)		(56)		(2)
Fair value, end of period	$	191	$	8	$	191	$	8
Weighted-average life (years)	6.4		6.2		6.4		6.2

(1)Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.

(2)Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and partial loan paydowns.

(3)Represents decrease in value associated with loans that paid off during the period.

(4)Represents change in value resulting primarily from market-driven changes in interest rates and prepayment speeds.

Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions

For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at September 30, 2020, and December 31, 2019 follows:

	September 30, 2020							December 31, 2019 (1)
				Decline in fair value due to							Decline in fair value due to
(dollar amounts in millions)	Actual			10% adverse change		20% adverse change		Actual			10% adverse change		20% adverse change
Constant prepayment rate (annualized)	15.62	%		$	(9)	$	(18)	8.21	%		$	—	$	—
Spread over forward interest rate swap rates	798		bps	(5)		(11)		824		bps	—		—

(1)Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.