v3.26.1
MORTGAGE LOAN SALES AND SERVICING RIGHTS
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
MORTGAGE LOAN SALES AND SERVICING RIGHTS MORTGAGE LOAN SALES AND SERVICING RIGHTS
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Residential mortgage loans sold with servicing retained
$2,045
$1,168
$3,354
$2,177
Pretax gains resulting from above loan sales (1)
49
23
77
42
Total servicing, late, and other ancillary fees (1)
34
26
67
53
(1)Included in mortgage banking income.
The following table summarizes the changes in MSRs recorded using the fair value method.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Fair value, beginning of period
$735
$564
$593
$573
Servicing assets obtained in acquisition
—
`
`
—
140
—
New servicing assets created
40
20
68
40
Change in fair value during the period due to:
Time decay (1)
(9)
(7)
(16)
(14)
Payoffs (2)
(15)
(10)
(29)
(17)
Changes in valuation inputs or assumptions (3)
1
—
(4)
(15)
Fair value, end of period
$752
$567
$752
$567
Related loans serviced for third parties, unpaid principal balance,
end of period
$43,419
$33,925
$43,419
$33,925
(1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
(2)Represents decrease in value associated with loans that paid off during the period.
(3)Represents change in value resulting primarily from market-driven changes in interest rates.
The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these
assumptions.
At June 30, 2026
At December 31, 2025
Decline in fair value due to
Decline in fair value due to
(dollar amounts in millions)
Actual
10%
adverse
change
20%
adverse
change
Actual
10%
adverse
change
20%
adverse
change
Constant prepayment rate (annualized)
8.16%
$(21)
$(40)
8.09%
$(17)
$(33)
Spread over forward interest rate swap rates
544
bps
(17)
(34)
538
bps
(14)
(27)