Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2020

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Mar 31, 2020			Dec 31, 2019
UPB of residential mortgage loan servicing portfolio	$	276,304		$	279,558
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	219,979			219,347
Mortgage loans sold with recourse	395			371
Maximum recourse exposure from mortgage loans sold with recourse liability	241			212
Indemnification, recourse and repurchase reserves	66			44
As of / For the Three Months Ended March 31, (Dollars in millions)	2020			2019
UPB of residential mortgage loans sold from LHFS	$	12,669		$	1,300
Pre-tax gains recognized on mortgage loans sold and held for sale	188			17
Servicing fees recognized from mortgage loans serviced for others	169			61
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.31		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	4.02			4.06

Analysis of Activity in Residential MSRs

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

Three Months Ended March 31, (Dollars in millions)	2020		2019
Residential MSRs, carrying value, January 1	$	2,371	$	957
Other additions	178		15
Change in fair value due to changes in valuation inputs or assumptions:
Prepayment speeds	(522)		(55)
OAS	45		4
Servicing costs	—		—
Realization of expected net servicing cash flows, passage of time and other	(148)		(33)
Residential MSRs, carrying value, March 31	$	1,924	$	888

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:

	March 31, 2020							December 31, 2019
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	9.4	%	19.0	%	11.2		%	8.4	%	18.6	%	9.6		%
Effect on fair value of a 10% increase					$	(104)						$	(102)
Effect on fair value of a 20% increase					(198)							(195)
OAS	2.8	%	12.8	%	5.9		%	4.0	%	13.5	%	6.7		%
Effect on fair value of a 10% increase					$	(39)						$	(54)
Effect on fair value of a 20% increase					(76)							(106)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					98.6		%					98.5		%
Adjustable-rate residential mortgage loans					1.4							1.5
Total					100.0		%					100.0		%
Weighted average life					4.3 years							5.4 years

Summary of Commercial Mortgage Banking Activities

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

(Dollars in millions)	Mar 31, 2020		Dec 31, 2019
UPB of CRE mortgages serviced for others	$	71,391	$	70,404
CRE mortgages serviced for others covered by recourse provisions	8,592		8,676
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,490		2,479
Recorded reserves related to recourse exposure	18		13
CRE mortgages originated during the year-to-date period	1,271		8,062
Commercial MSRs at fair value	226		247