v3.26.1
Mortgage Servicing Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Servicing Asset [Abstract]  
Schedule of Changes in Carrying Amount of Mortgage Servicing Assets
Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows:
Year ended December 31,
Dollars in millions
20252024
Balance at beginning of period$609 $638 
Servicing retained from loan sales83 67 
Purchases11 28 
Amortization(125)(124)
Balance at end of period$578 $609 
Fair value at end of period$736 $819 
Changes in the carrying amount of residential mortgage servicing assets are summarized as follows:
Dollars in millions20252024
Balance at beginning of period
$111 $108 
Servicing retained from loan sales
14 13 
Amortization(12)(11)
Temporary recoveries (impairments)— 1 
Balance at end of period$113 $111 
Fair value at end of period
$137 $138 
Schedule of Range and Weighted-Average of Significant Unobservable Inputs The range and weighted-average of the significant unobservable inputs used to determine fair value our commercial mortgage servicing assets along with the valuation techniques, are shown in the following table:
dollars in millionsDecember 31, 2025December 31, 2024
Valuation Technique
Significant
Unobservable Input
RangeWeighted-AverageRangeWeighted-Average
Discounted cash flowExpected defaults1.00 %2.00 %1.01 %1.00 %2.00 %1.01 %
Residual cash flows discount rate6.96 %10.84 %10.58 %7.00 %10.61 %10.31 %
Escrow earn rate3.94 %4.09 %4.08 %4.62 %4.70 %4.69 %
Prepayment rate8.00 %45.00 %10.05 %8.00 %45.00 %10.29 %
The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at December 31, 2025, and December 31, 2024, along with the valuation techniques, are shown in the following table:
December 31, 2025December 31, 2024
Valuation Technique
Significant
Unobservable Input
RangeWeighted-AverageRangeWeighted-Average
Discounted cash flowPrepayment speed6.01 %33.07 %8.33 %5.42 %46.30 %7.69 %
Discount rate6.50 %8.75 %6.62 %6.50 %8.75 %6.61 %
Servicing cost$70.00 $4,332 $76.47 $70.00 $4,332 $75.99 
If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost    are critical to the valuation of residential mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the residential mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. An increase in the prepayment speed would cause a decrease in the fair value of our residential mortgage servicing assets. An increase in the assigned discount rates and servicing cost assumptions would cause a decrease in the fair value of our residential mortgage servicing assets.
The sensitivity of the fair value of residential mortgage servicing assets to adverse fluctuations in key assumptions as of December 31, 2025, is presented below:
Dollars in millions2025
Key Assumptions:
Prepayment speed8.33 %
Effect on Fair Value of a 10% adverse change$(4)
Effect on Fair Value of a 20% adverse change(8)
Discount rate6.62 %
Effect on Fair Value of a 10% adverse change$(4)
Effect on Fair Value of a 20% adverse change(7)
Schedule of Assumptions and Sensitivity of MSR’s
The sensitivity of the fair value of commercial mortgage servicing assets to adverse fluctuations in key assumptions as of December 31, 2025, is presented below:

Dollars in millions
2025
Key assumptions:
Escrow earn rate assumptions4.08 %
Effect on fair value from 10% adverse change$(29)
Effect on fair value from 20% adverse change(57)
Discount rate assumptions10.58 %
Effect on fair value from 10% adverse change$(19)
Effect on fair value from 20% adverse change(36)
Default rate assumptions1.01 %
Effect on fair value from 10% adverse change$(2)
Effect on fair value from 20% adverse change(3)
Prepayment rate assumptions10.05 %
Effect on fair value from 10% adverse change$(6)
Effect on fair value from 20% adverse change(13)
Assumptions and information for originated mortgage servicing right additions for the year ended December 31, 2025 are shown in the following table:

Dollars in millions
2025
Unpaid principal balance of loans sold during the period$8,511 
Pretax gains related to the sale of mortgage loans131 
Weighted average servicing fee rate0.16 %
Weighted average assumptions:
Escrow earn rate assumption4.88 %
Discount rate assumption9.82 %
Default rate assumption1.04 %
Prepayment rate assumption12.71 %