MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2022

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 six-month periods ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollar amounts in millions)	2022		2021		2022		2021
Residential mortgage loans sold with servicing retained	$	1,313	$	2,748	$	3,247	$	5,004
Pretax gains resulting from above loan sales (1)	40		101		99		194

(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 six-month periods ended June 30, 2022 and 2021:


	Three Months Ended June 30,					Six Months Ended June 30,
(dollar amounts in millions)	2022			2021		2022		2021
Fair value, beginning of period	$	416		$	274	$	351	$	210

Servicing assets obtained in acquisition	—		``	59		—		59
New servicing assets created	18			38		47		72
Change in fair value during the period due to:
Time decay (1)	(5)			(4)		(10)		(7)
Payoffs (2)	(10)			(16)		(20)		(33)
Changes in valuation inputs or assumptions (3)	44			(24)		95		26
Fair value, end of period	$	463		$	327	$	463	$	327
Weighted-average life (years)	8.1			6.9		8.1		6.9

(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 of the servicing rights value to changes in the assumptions

A summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at June 30, 2022, and December 31, 2021 follows:


	June 30, 2022							December 31, 2021
				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)	7.29	%		$	(13)	$	(25)	12.28	%		$	(17)	$	(32)
Spread over forward interest rate swap rates	584		bps	(11)		(22)		466		bps	(7)		(13)