MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2024

Summarizes activity relating to loans securitized sold with servicing retained

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


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Residential mortgage loans sold with servicing retained	$	983	$	1,117	$	1,794	$	1,979
Pretax gains resulting from above loan sales (1)	19		15		32		22
Total servicing, late, and other ancillary fees (1)	25		24		51		48

(1)Included 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.


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Fair value, beginning of period	$	534	$	485	$	515	$	494


New servicing assets created	11		18		21		31
Change in fair value during the period due to:
Time decay (1)	(7)		(6)		(13)		(12)
Payoffs (2)	(7)		(7)		(12)		(11)
Changes in valuation inputs or assumptions (3)	12		15		32		3
Fair value, end of period	$	543	$	505	$	543	$	505
Loans serviced for third parties, unpaid principal balance, end of period	$	33,404	$	32,712	$	33,404	$	32,712

(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 follows:


	At June 30, 2024							At December 31, 2023
				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)	8.48	%		$	(15)	$	(29)	8.61	%		$	(15)	$	(28)
Spread over forward interest rate swap rates	523		bps	(11)		(22)		538		bps	(11)		(22)