Goodwill and Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2019

Table 56: Mortgage Servicing Rights



	Commercial MSRs						Residential MSRs
In millions	2019			2018			2019			2018
January 1	$	726		$	668		$	1,257		$	1,164
Additions:
From loans sold with servicing retained	7			17			7			13
Purchases	19			23			6			9
Changes in fair value due to:
Time and payoffs (a)	(38		)	(33		)	(33		)	(37		)
Other (b)	(33		)	48			(106		)	107
March 31	$	681		$	723		$	1,131		$	1,256
Related unpaid principal balance at March 31	$	186,946		$	169,172		$	123,079		$	124,696
Servicing advances at March 31	$	243		$	200		$	138		$	197


(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.

Table 57: Commercial Mortgage Servicing Rights – Key Valuation Assumptions



Dollars in millions	March 31 2019			December 31 2018
Fair value	$	681		$	726
Weighted-average life (years)	4.1			4.1
Weighted-average constant prepayment rate	5.45		%	5.65		%
Decline in fair value from 10% adverse change	$	10		$	10
Decline in fair value from 20% adverse change	$	19		$	19
Effective discount rate	8.23		%	8.39		%
Decline in fair value from 10% adverse change	$	18		$	19
Decline in fair value from 20% adverse change	$	36		$	39

Table 58: Residential Mortgage Servicing Rights – Key Valuation Assumptions



Dollars in millions	March 31 2019				December 31 2018
Fair value	$	1,131			$	1,257
Weighted-average life (years)	6.2				6.9
Weighted-average constant prepayment rate	10.46		%		8.69		%
Decline in fair value from 10% adverse change	$	43			$	41
Decline in fair value from 20% adverse change	$	83			$	79
Weighted-average option adjusted spread	805			bps	806			bps
Decline in fair value from 10% adverse change	$	32			$	37
Decline in fair value from 20% adverse change	$	63			$	73