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MORTGAGE BANKING (Tables)
 6 Months Ended
Jun. 30, 2016
Mortgage Banking [Abstract]  
Schedule of valuation allowance for impairment of recognized servicing assets
Changes related to MSRs were as follows:
 
As of and for the Three Months Ended
June 30,
 
As of and for the Six Months Ended
June 30,
(in millions)
2016

 
2015

 
2016

 
2015

MSRs:
 
 
 
 
 
 
 
Balance as of beginning of period

$169

 

$180

 

$173

 

$184

Amount capitalized
5

 
7

 
10

 
13

Amortization
(8
)
 
(10
)
 
(17
)
 
(20
)
Carrying amount before valuation allowance
166

 
177

 
166

 
177

Valuation allowance for servicing assets:

 

 
 
 
 
Balance as of beginning of period
14

 
17

 
9

 
18

Valuation charge-offs (recoveries)
(1
)
 
(6
)
 
4

 
(7
)
Balance at end of period
13

 
11

 
13

 
11

Net carrying value of MSRs

$153

 

$166

 

$153

 

$166
Servicing asset at amortized cost
Changes related to MSRs were as follows:
 
As of and for the Three Months Ended
June 30,
 
As of and for the Six Months Ended
June 30,
(in millions)
2016

 
2015

 
2016

 
2015

MSRs:
 
 
 
 
 
 
 
Balance as of beginning of period

$169

 

$180

 

$173

 

$184

Amount capitalized
5

 
7

 
10

 
13

Amortization
(8
)
 
(10
)
 
(17
)
 
(20
)
Carrying amount before valuation allowance
166

 
177

 
166

 
177

Valuation allowance for servicing assets:

 

 
 
 
 
Balance as of beginning of period
14

 
17

 
9

 
18

Valuation charge-offs (recoveries)
(1
)
 
(6
)
 
4

 
(7
)
Balance at end of period
13

 
11

 
13

 
11

Net carrying value of MSRs

$153

 

$166

 

$153

 

$166
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights
The key economic assumptions used to estimate the value of MSRs are presented in the following table:
(dollars in millions)
June 30, 2016
 
December 31, 2015
Fair value
$165
 
$178
Weighted average life (in years)
4.9
 
5.4
Weighted average constant prepayment rate
13.5%
 
11.6%
Weighted average discount rate
9.7%
 
9.7%
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights capitalized in current period
The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Weighted average life (in years)
5.9
 
6.3
 
6.0
 
5.4
Weighted average constant prepayment rate
11.3%
 
  9.8%
 
11.1%
 
11.1%
Weighted average discount rate
  9.7%
 
  9.7%
 
  9.7%
 
9.6%
Schedule of the impact to fair value of an adverse change in key economic assumptions
The sensitivity analysis below as of June 30, 2016 and December 31, 2015 presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical. The effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment speeds, could result in changes in the discount rates), which might amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates.
(in millions)
June 30, 2016
 
December 31, 2015
Prepayment rate:
 
 
 
Decline in fair value from a 50 basis point decrease in interest rates

$6

 

$5

Decline in fair value from a 100 basis point decrease in interest rates

$17

 

$11

Weighted average discount rate:
 
 
 
Decline in fair value from a 50 basis point increase in weighted average discount rate

$3

 

$3

Decline in fair value from a 100 basis point increase in weighted average discount rate

$5

 

$6