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MORTGAGE BANKING AND OTHER (Tables)
 9 Months Ended
Sep. 30, 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 September 30,Nine Months Ended September 30,
(in millions)2022202120222021
Cash proceeds from residential mortgage loans sold with servicing retained$3,518 $9,024 $14,676 $28,601 
Repurchased residential mortgages(1)
— 114 87 1,283 
Gain on sales(2)
21 96 74 321 
Contractually specified servicing, late and other ancillary fees(2)
75 63 213 181 
(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 September 30,As of and for the Nine Months Ended September 30,
(in millions)2022202120222021
Fair value as of beginning of the period$1,411 $902 $1,029 $658 
Amounts capitalized70 109 244 318 
Servicing rights acquired— — 16 — 
Changes in unpaid principal balance during the period(1)
(31)(54)(102)(159)
Changes in fair value during the period(2)
74 21 337 161 
Fair value at end of the period$1,524 $978 $1,524 $978 
(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)September 30, 2022December 31, 2021
Fair value$1,524$1,029
Weighted average life (years)9.26.4
Weighted average constant prepayment rate6.8%10.7%
Decline in fair value from 10% adverse change
$34$45
Decline in fair value from 20% adverse change
$66$87
Weighted average option adjusted spread627 bps596 bps
Decline in fair value from 10% adverse change
$42$25
Decline in fair value from 20% adverse change
$85$50
Schedule of other serviced loans The following table presents the unpaid principal balance of other serviced loans:
(in millions)September 30, 2022December 31, 2021
Education$621 $761 
Commercial and industrial(1)
604 80 
Leases(2)
354 — 
(1) Includes $92 million of government guaranteed SBA loans sold to outside investors with servicing retained and $512 million of loans acquired in the Investors acquisition that were sold and are subject to a temporary service agreement set to expire in the fourth quarter of 2022.
(2) Represents leases acquired in the Investors acquisition that were sold and are subject to a temporary service agreement set to expire in the fourth quarter of 2022.