XML 43 R31.htm IDEA: XBRL DOCUMENT v3.22.1
MORTGAGE BANKING AND OTHER (Tables)
 3 Months Ended
Mar. 31, 2022
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 March 31,
(in millions)20222021
Cash proceeds from residential mortgage loans sold with servicing retained$6,582 $9,038 
Repurchased residential mortgages(1)
87 — 
Gain on sales(2)
30 140 
Contractually specified servicing, late and other ancillary fees(2)
67 58 
(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 Three Months Ended March 31,
(in millions)20222021
Fair value as of beginning of the period$1,029 $658 
Amounts capitalized95 87 
Changes in unpaid principal balance during the period(1)
(39)(58)
Changes in fair value during the period(2)
156 206 
Fair value at end of the period$1,241 $893 
(1) 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.
(2) 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
(dollars in millions)March 31, 2022December 31, 2021
Fair value$1,241$1,029
Weighted average life (years)7.86.4
Weighted average constant prepayment rate8.8%10.7%
Decline in fair value from 10% adverse change
$40$45
Decline in fair value from 20% adverse change
$78$87
Weighted average option adjusted spread621 bps596 bps
Decline in fair value from 10% adverse change
$33$25
Decline in fair value from 20% adverse change
$66$50
Schedule of other serviced loans The following table presents the unpaid principal balance of other serviced loans:
(in millions)March 31, 2022December 31, 2021
Education$699 $761 
Commercial and industrial(1)
83 80 
(1) Represents the government guaranteed portion of SBA loans sold to outside investors.