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MORTGAGE BANKING (Tables)
 9 Months Ended
Sep. 30, 2020
Mortgage Banking [Abstract]  
Schedule of mortgage banking activities The following table summarizes activity related to residential mortgage loans sold with servicing rights retained:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2020

 
2019

 
2020

 
2019

Cash proceeds from residential mortgage loans sold with servicing retained

$9,504

 

$6,117

 

$23,668

 

$13,265

Gain on sales (1)
273

 
88

 
699

 
180

Contractually specified servicing, late and other ancillary fees (1)
56

 
53

 
169

 
152

(1) Reported in mortgage banking fees on the Consolidated Statements of Operations.
Servicing asset at fair value
The following table summarizes changes in MSRs recorded using the fair value method:
 
As of and for the Three Months Ended September 30,
 
As of and for the Nine Months Ended September 30,
(in millions)
2020

 
2019

 
2020

 
2019

Fair value as of beginning of the period

$568

 

$531

 

$642

 

$600

Transfers upon election of fair value method
—

 
—

 
190

 
—

Fair value as of beginning of the period, adjusted
568

 
531

 
832

 
600

Amounts capitalized
85

 
78

 
238

 
170

Changes in unpaid principal balance during the period (1)
(55
)
 
(31
)
 
(141
)
 
(88
)
Changes in fair value during the period (2)
8

 
(68
)
 
(323
)
 
(172
)
Fair value at end of the period

$606

 

$510

 

$606

 

$510

(1) Represents changes in value due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii)
loans that paid off during the period.
(2) Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds.
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights
 
September 30, 2020
 
December 31, 2019
 
Actual
Decline in fair value due to
 
Actual
Decline in fair value due to
(dollars in millions)
 
Fair value
$606
50 bps adverse change
100 bps adverse change
 
$642
50 bps adverse change
100 bps adverse change
Weighted average life (in years)
3.8
 
5.5
Weighted average constant prepayment rate
19.4%
$116
$169
 
13.9%
$116
$222
Weighted average option adjusted spread
608 bps
10
21
 
440 bps
12
25
Schedule of Other Serviced Loans The following table presents the unpaid principal balance of other serviced loans:
(in millions)
September 30, 2020
 
December 31, 2019
Education(1)

$866

 

$—

Commercial(2)
44

 
33

(1) Represents the servicing associated with education loans sold. See Note 7 for further information.
(2) Represents the government guaranteed portion of SBA loans sold to outside investors.