Mortgage Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Changes in Carrying Amount of Mortgage Servicing Assets

Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows:


	Three months ended March 31,
Dollars in millions	2024		2023
Balance at beginning of period	$	638	$	653
Servicing retained from loan sales	18		9
Purchases	6		4
Amortization	(31)		(32)
Temporary (impairments) recoveries	—		—
Balance at end of period	$	631	$	634
Fair value at end of period	$	846	$	981

Changes in the carrying amount of residential mortgage servicing assets are summarized as follows:


	Three months ended March 31,
Dollars in millions	2024		2023
Balance at beginning of period	$	108	$	106
Servicing retained from loan sales	2		1
Purchases	—		—
Amortization	(2)		(2)
Temporary (impairments) recoveries(a)	—		—
Balance at end of period	$	108	$	105
Fair value at end of period	$	133	$	129

(a) A temporary impairment of less than $1 million was recorded for the three months ended March 31, 2024.

Schedule of Range and Weighted-Average of Significant Unobservable Inputs

The range and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at March 31, 2024, and March 31, 2023, along with the valuation techniques, are shown in the following table:


		March 31, 2024						March 31, 2023
Valuation Technique	Significant Unobservable Input	Range				Weighted Average		Range				Weighted Average

Discounted cash flow	Expected defaults	1.00	%	2.00	%	1.01	%	0.96	%	2.00	%	1.06	%
	Residual cash flows discount rate	7.41	%	10.65	%	10.28	%	8.57	%	10.03	%	9.49	%
	Escrow earn rate	5.00	%	5.09	%	5.00	%	4.94	%	4.95	%	4.94	%

	Loan assumption rate	—	%	2.16	%	1.97	%	—	%	1.40	%	1.14	%

The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2024, and March 31, 2023, along with the valuation techniques, are shown in the following table:


		March 31, 2024									March 31, 2023
Valuation Technique	Significant Unobservable Input	Range						Weighted Average			Range						Weighted Average

Discounted cash flow	Prepayment speed	6.29		%	43.74		%	7.68		%	6.41		%	40.74		%	7.30		%
	Discount rate	6.50		%	8.75		%	6.59		%	7.50		%	8.50		%	7.54		%
	Servicing cost	$	70.00		$	3,582		$	74.91		$	62.00		$	8,075		$	67.36