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MORTGAGE BANKING AND OTHER SERVICED LOANS (Tables)
 9 Months Ended
Sep. 30, 2025
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,
(dollars in millions)2025202420252024
Cash proceeds from residential mortgage loans sold with servicing retained$2,528 $2,137 $6,920 $5,432 
Gain on sales(1)
19 17 56 47 
Contractually specified servicing, late, and other ancillary fees(1)
70 79 209 235 
(1) 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,
(dollars in millions)2025202420252024
Fair value as of beginning of the period$1,426 $1,568 $1,491 $1,552 
Amounts capitalized42 28 117 71 
Sales(1)
— — (72)— 
Changes in unpaid principal balance(2)
(41)(46)(120)(135)
Changes in fair value(3)
3 (49)14 13 
Fair value at end of the period$1,430 $1,501 $1,430 $1,501 
(1) For the nine months ended September 30, 2025, represents the sale of the excess servicing yield on MSRs related to certain FNMA mortgages with a total unpaid principal balance of $10.5 billion at the time of sale.
(2) Represents changes in value of the MSRs due to i) the 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 fair 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 of an immediate 10% and 20% adverse change in key economic assumptions to the current fair value of MSRs. 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. Changes in one factor may result in changes in another (e.g., changes in interest rates that drive changes in prepayment rates could result in changes in discount rates) and 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)September 30, 2025December 31, 2024
Fair value$1,430$1,491
Weighted average life (years)8.08.7
Weighted average constant prepayment rate7.1%6.7%
Decline in fair value from 10% adverse change
$39$35
Decline in fair value from 20% adverse change
$72$67
Weighted average option adjusted spread608 bps632 bps
Decline in fair value from 10% adverse change
$40$42
Decline in fair value from 20% adverse change
$80$84
Schedule of other serviced loans The following table presents the unpaid principal balance of other serviced loans:
(dollars in millions)September 30, 2025December 31, 2024
Education$358 $420 
Commercial and industrial(1)
88 92 
(1) Represents the government guaranteed portion of SBA loans sold to outside investors