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Goodwill and Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Mortgage Servicing Rights
Changes in the commercial and residential MSRs follow:

Table 59: Mortgage Servicing Rights
 
Commercial MSRs
 
Residential MSRs
 
In millions
2018

2017

 
2018

2017

 
January 1
$
668

$
576

 
$
1,164

$
1,182

 
Additions:
 
 
 
 
 
 
From loans sold with servicing retained
17

29

 
13

17

 
Purchases
23

13

 
9

83

 
Changes in fair value due to:
 
 
 
 
 
 
Time and payoffs (a)
(33
)
(25
)
 
(37
)
(39
)
 
Other (b)
48

13

 
107

18

 
March 31
$
723

$
606

 
$
1,256

$
1,261

 
Related unpaid principal balance at March 31
$
169,172

$
143,908

 
$
124,696

$
130,382

 
Servicing advances at March 31
$
200

$
234

 
$
197

$
260

 
(a)
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
(b)
Represents MSR value changes resulting primarily from market-driven changes in interest rates.
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions
The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions.

Table 60: Commercial Mortgage Loan Servicing Rights – Key Valuation Assumptions
Dollars in millions
March 31
2018

 
December 31
2017

 
Fair value
$
723

 
$
668

 
Weighted-average life (years)
4.4

 
4.4

 
Weighted-average constant prepayment rate
7.89
%
 
8.51
%
 
Decline in fair value from 10% adverse change
$
12

 
$
12

 
Decline in fair value from 20% adverse change
$
22

 
$
23

 
Effective discount rate
8.09
%
 
7.81
%
 
Decline in fair value from 10% adverse change
$
19

 
$
18

 
Decline in fair value from 20% adverse change
$
39

 
$
36

 
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions
Table 61: Residential Mortgage Loan Servicing Rights – Key Valuation Assumptions
Dollars in millions
March 31
2018

 
December 31
2017

 
Fair value
$
1,256

 
$
1,164

 
Weighted-average life (years)
7.0

 
6.4

 
Weighted-average constant prepayment rate
8.72
%
 
10.04
%
 
Decline in fair value from 10% adverse change
$
40

 
$
44

 
Decline in fair value from 20% adverse change
$
78

 
$
85

 
Weighted-average option adjusted spread
831

bps 
830

bps 
Decline in fair value from 10% adverse change
$
38

 
$
35

 
Decline in fair value from 20% adverse change
$
74

 
$
67