MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of activity relating to loans securitized sold with servicing rights

The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the years ended December 31, 2021, 2020, and 2019:


	Year Ended December 31,
(dollar amounts in millions)	2021		2020		2019
Residential mortgage loans sold with servicing retained	$	9,702	$	8,436	$	4,841
Pretax gains resulting from above loan sales (1)	356		311		119

(1)Recorded in mortgage banking income.

Schedule of Servicing Assets at Fair Value

The following table summarizes the changes in MSRs recorded using the fair value method for the years ended December 31, 2021 and 2020 (1):


	Year Ended December 31,
(dollar amounts in millions)	2021		2020
Fair value, beginning of period	$	210	$	7
Fair value election for servicing assets previously measured using the amortized method	—		205
Servicing assets obtained in acquisition	59		—
New servicing assets created	135		102
Change in fair value during the period due to:
Time decay (1)	(15)		(9)
Payoffs (2)	(65)		(43)
Changes in valuation inputs or assumptions (3)	27		(52)
Fair value, end of period	$	351	$	210
Weighted-average life (years)	7.0		7.6

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

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

(3)Represents change in value resulting primarily from market-driven changes in interest rates.

Summary of key assumptions and the sensitivity analysis of servicing rights

A summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at December 31, 2021, and December 31, 2020 follows:


	December 31, 2021							December 31, 2020
				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)	12.28	%		$	(17)	$	(32)	17.36	%		$	(12)	$	(23)
Spread over forward interest rate swap rates	466		bps	(7)		(13)		519		bps	(4)		(8)