Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

December 31, (Dollars in millions)	2019			2018			2017
UPB of residential mortgage loan servicing portfolio	$	279,558		$	118,605		$	118,424
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	219,347			87,270			89,124
Mortgage loans sold with recourse	371			419			490
Maximum recourse exposure from mortgage loans sold with recourse liability	212			223			251
Indemnification, recourse and repurchase reserves	44			24			37
As of / For the Year Ended December 31, (Dollars in millions)	2019			2018			2017
UPB of residential mortgage loans sold from LHFS	$	16,646		$	10,094		$	12,423
Pre-tax gains recognized on mortgage loans sold and held for sale	122			116			153
Servicing fees recognized from mortgage loans serviced for others	265			256			261
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.31		%	0.28		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	4.04			4.04			4.00

Analysis of Activity in Residential MSRs

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:

Year Ended December 31, (Dollars in millions)	2019		2018		2017
Residential MSRs, carrying value, January 1	$	957	$	914	915
Merger	1,506		—		—
Other additions	171		116		123
Change in fair value due to changes in valuation inputs or assumptions:
Prepayment speeds	(131)		(12)		(42)
OAS	32		57		46
Servicing costs	—		22		9
Realization of expected net servicing cash flows, passage of time and other	(164)		(140)		(137)
Residential MSRs, carrying value, December 31	$	2,371	$	957	$	914

Residential MSRs Sensitivity

The sensitivity of the fair value of the Company's residential MSRs to changes in key assumptions is presented in the following table:

	2019							2018
December 31, (Dollars in millions)	Range				Weighted Average			Range				Weighted Average
	Min		Max					Min		Max
Prepayment speed	8.4	%	18.6	%	9.6		%	9.1	%	10.5	%	9.9		%
Effect on fair value of a 10% increase					$	(102)						$	(34)
Effect on fair value of a 20% increase					(195)							(66)
OAS	4.0	%	13.5	%	6.7		%	6.6	%	8.3	%	7.0		%
Effect on fair value of a 10% increase					$	(54)						$	(24)
Effect on fair value of a 20% increase					(106)							(47)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					98.5		%					99.2		%
Adjustable-rate residential mortgage loans					1.5							0.8
Total					100.0		%					100.0		%
Weighted average life					5.4 years							6.1 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities for the periods presented:

December 31, (Dollars in millions)	2019		2018
UPB of CRE mortgages serviced for others	$	70,404	$	27,761
CRE mortgages serviced for others covered by recourse provisions	8,676		4,699
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,479		1,317
Recorded reserves related to recourse exposure	13		6
CRE mortgages originated during the year-to-date period	8,062		7,072
Commercial MSRs at fair value	247		151