The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $215.1 billion of residential mortgage loans for others at June 30, 2026, and $216.3 billion at December 31, 2025, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $2 million and net losses of $4 million for the three months ended June 30, 2026 and 2025, respectively, and net losses of $25 million and $2 million for the six months ended June 30, 2026 and 2025, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $164 million and $172 million for the three months ended June 30, 2026 and 2025, respectively, and $327 million and $344 million for the six months ended June 30, 2026 and 2025, respectively.


	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2026		2025		2026		2025
Balance at beginning of period	$	3,152	$	3,312	$	3,159	$	3,369
Rights capitalized	85		64		151		123
Rights sold	(2)		—		(4)		1
Changes in fair value of MSRs
Due to fluctuations in market interest rates(a)	17		9		26		(40)
Due to revised assumptions or models(b)	5		6		(12)		10
Other changes in fair value(c)	(80)		(86)		(143)		(158)
Balance at end of period	$	3,177	$	3,305	$	3,177	$	3,305

(c)Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.


	June 30, 2026												December 31, 2025
(Dollars in Millions)	Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps		Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps
MSR portfolio	$	(361)	$	(172)	$	(83)	$	77	$	149	$	272	$	(369)	$	(176)	$	(86)	$	81	$	155	$	284
Derivative instrument hedges	372		177		85		(76)		(148)		(279)		397		188		89		(79)		(153)		(297)
Net sensitivity	$	11	$	5	$	2	$	1	$	1	$	(7)	$	28	$	12	$	3	$	2	$	2	$	(13)

The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Housing Finance Agency (“HFA”) mortgages. The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The HFA servicing portfolio is comprised of loans originated under state and local housing authority program guidelines which assist purchases by first-time or low- to moderate-income homebuyers through a favorable rate subsidy, down payment and/or closing cost assistance on government- and conventional-insured mortgages.


	June 30, 2026												December 31, 2025
(Dollars in Millions)	HFA			Government			Conventional(d)			Total			HFA			Government			Conventional(d)			Total
Servicing portfolio(a)	$	58,251		$	22,862		$	124,918		$	206,031		$	56,993		$	23,630		$	126,614		$	207,237
Fair value	$	874		$	459		$	1,844		$	3,177		$	849		$	465		$	1,845		$	3,159
Value (bps)(b)	150			201			148			154			149			197			146			152
Weighted-average servicing fees (bps)	35			45			25			30			35			45			25			30
Multiple (value/servicing fees)	4.27			4.50			5.81			5.09			4.22			4.41			5.75			5.03
Weighted-average note rate	5.23		%	4.42		%	4.10		%	4.45		%	5.17		%	4.41		%	4.04		%	4.39		%
Weighted-average age (in years)	4.9			7.1			5.9			5.8			4.8			6.8			5.7			5.6
Weighted-average expected prepayment (constant prepayment rate)	10.2		%	9.9		%	8.2		%	9.0		%	10.2		%	10.1		%	8.2		%	9.0		%
Weighted-average expected life (in years)	7.4			6.7			7.1			7.1			7.4			6.7			7.2			7.2
Weighted-average option adjusted spread(c)	7.1		%	6.6		%	4.8		%	5.7		%	7.3		%	6.9		%	5.1		%	5.9		%