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MORTGAGE BANKING (Tables)
 12 Months Ended
Dec. 31, 2016
Mortgage Banking [Abstract]  
Schedule of valuation allowance for impairment of recognized servicing assets
Changes related to MSRs are presented below:
 
As of and for the Year Ended   December 31,
(in millions)
2016

 
2015

MSRs:
 
 
 
Balance as of January 1

$173

 

$184

Amount capitalized
29

 
26

Amortization
(35
)
 
(37
)
Carrying amount before valuation allowance
167

 
173

Valuation allowance for servicing assets:
 
 
 
Balance as of January 1
9

 
18

Valuation recovery
(4
)
 
(9
)
Balance at end of period
5

 
9

Net carrying value of MSRs

$162

 

$164
Servicing asset at amortized cost
Changes related to MSRs are presented below:
 
As of and for the Year Ended   December 31,
(in millions)
2016

 
2015

MSRs:
 
 
 
Balance as of January 1

$173

 

$184

Amount capitalized
29

 
26

Amortization
(35
)
 
(37
)
Carrying amount before valuation allowance
167

 
173

Valuation allowance for servicing assets:
 
 
 
Balance as of January 1
9

 
18

Valuation recovery
(4
)
 
(9
)
Balance at end of period
5

 
9

Net carrying value of MSRs

$162

 

$164
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:
 
December 31,
 
2016
 
2015
(dollars in millions)
Weighted Average
   Range
 
Weighted Average
   Range
Fair value
$182
Min
Max
 
$178
Min
Max
Weighted average life (in years)
5.7
2.6
7.3
 
5.4
2.8
6.2
Weighted average constant prepayment rate
10.8%
8.8%
22.3%
 
11.6%
10.7%
22.2
%
Weighted average discount rate
9.7%
9.1%
12.1%
 
9.7%
9.1%
12.1
%
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 are presented below:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Weighted average life (in years)
6.1
 
5.9
 
5.8
Weighted average constant prepayment rate
 11.0%
 
 10.7%
 
 11.7%
Weighted average discount rate
   9.7%
 
   9.7%
 
   10.3%
Schedule of the impact to fair value of an adverse change in key economic assumptions
The sensitivity analysis below 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, with 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 rates, could result in changes in the discount rates), which may 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.
 
December 31,
(in millions)
2016
 
2015
Prepayment rate:
 
 
 
Decline in fair value from a 50 basis point decrease in interest rates

$9

 

$5

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

$25

 

$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

$6

 

$6