Loan Servicing (Tables)

6 Months Ended

Jun. 30, 2025

Transfers and Servicing [Abstract]

Summary of Residential Mortgage Banking Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)	Jun 30, 2025			Dec 31, 2024
UPB of residential mortgage loan servicing portfolio	$	270,750		$	273,412
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	213,002			218,475
Mortgage loans sold with recourse	138			146
Maximum recourse exposure from mortgage loans sold with recourse liability	87			91
Indemnification, recourse and repurchase reserves	27			44
As of / For the Six Months Ended June 30, (Dollars in millions)	2025			2024
UPB of residential mortgage loans sold from LHFS	$	4,990		$	4,651
Pre-tax gains recognized on mortgage loans sold and held for sale	35			34
Servicing fees recognized from mortgage loans serviced for others	309			294
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.28		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	3.70			3.63

Analysis of Activity in Residential MSRs

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

(Dollars in millions)	2025		2024
Residential MSRs, carrying value, January 1	$	3,430	$	3,088
Additions	102		78
Sales	—		(2)
Change in fair value due to changes in valuation inputs or assumptions	(31)		88
Realization of expected net servicing cash flows, passage of time, and other	(151)		(135)
Residential MSRs, carrying value, June 30	$	3,350	$	3,117

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:

	June 30, 2025							December 31, 2024
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	6.3	%	13.5	%	7.4		%	6.3	%	11.2	%	7.1		%
Effect on fair value of a 10% increase					$	(94)						$	(89)
Effect on fair value of a 20% increase					(181)							(172)
OAS	1.4	%	12.2	%	4.8		%	1.8	%	12.5	%	4.8		%
Effect on fair value of a 10% increase					$	(70)						$	(70)
Effect on fair value of a 20% increase					(137)							(138)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.7		%					99.7		%
Adjustable-rate residential mortgage loans					0.3							0.3
Total					100.0		%					100.0		%
Weighted average life					7.5 years							7.6 years

Summary of Commercial Mortgage Banking Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
UPB of CRE mortgages serviced for others	$	27,007	$	27,845
CRE mortgages serviced for others covered by recourse provisions	9,731		9,985
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,866		2,940
Recorded reserves related to recourse exposure	11		11
CRE mortgages originated during the year-to-date period	277		1,467
Commercial MSRs at fair value	238		265