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MORTGAGE BANKING AND OTHER (Tables)
 12 Months Ended
Dec. 31, 2021
Mortgage Banking [Abstract]  
Schedule of mortgage banking activities
The following table summarizes activity related to residential mortgage loans sold with servicing rights retained:
Year Ended December 31,
(in millions)202120202019
Cash proceeds from residential mortgage loans sold with servicing retained$37,039 $33,221 $20,430 
Repurchased residential mortgages(1)
1,381 — — 
Gain on sales(2)
382 895 251 
Contractually specified servicing, late and other ancillary fees(2)
247 227 208 
(1) Includes government insured or guaranteed loans eligible for repurchase through the exercise of our removal of account provision option.
(2) Reported in mortgage banking fees in 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 Year Ended December 31,
(in millions)20212020
Fair value as of beginning of the period$658 $642 
Transfers upon election of fair value method(1)
— 190 
Fair value as of beginning of the period, adjusted658 832 
Amounts capitalized419 324 
Changes in unpaid principal balance during the period(2)
(212)(196)
Changes in fair value during the period(3)
164 (302)
Fair value at end of the period$1,029 $658 
(1) Effective January 1, 2020, the Company elected to account for all MSRs previously accounted for under the amortization method under the fair value method.
(2) Represents changes in value of the MSRs 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.
(3) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations.
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights The sensitivity analysis below presents the impact to the current MSR fair value of an immediate 10% and 20% adverse change in key economic assumptions. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the MSRs 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 largely dependent upon movements in market interest rates.
(dollars in millions)December 31, 2021December 31, 2020
Fair value$1,029$658
Weighted average life (years)6.44.2
Weighted average constant prepayment rate10.7%17.3%
Decline in fair value from 10% adverse change
$45$43
Decline in fair value from 20% adverse change
$87$92
Weighted average option adjusted spread596 bps595 bps
Decline in fair value from 10% adverse change
$25$14
Decline in fair value from 20% adverse change
$50$29
Schedule Of Other Serviced Loans The following table presents the unpaid principal balance of other serviced loans:
(in millions)December 31, 2021December 31, 2020
Education$761 $974 
Commercial and industrial(1)
80 51 
(1) Represents the government guaranteed portion of SBA loans sold to outside investors.