v3.26.3
MORTGAGE LOAN SALES AND SERVICING RIGHTS (Tables)
9 Months Ended
Sep. 30, 2026
Transfers and Servicing [Abstract]  
Summarizes Activity Relating to Loans Securitized Sold with Servicing Retained The following table summarizes activity relating to residential mortgage loans sold with servicing retained.
Three Months Ended
Nine Months Ended
(dollar amounts in millions)
September 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Residential mortgage loans sold with servicing retained
$1,748
$1,514
$5,102
$3,691
Pretax gains resulting from above loan sales (1)
46
24
123
66
Total servicing, late, and other ancillary fees (1)
35
27
102
80
(1)Included in mortgage banking income.
Summarizes Activity Relating to Loans Sold with Servicing Retained Using the Fair Value Method The following table summarizes the changes in MSRs recorded using the fair value method.
Three Months Ended
Nine Months Ended
(dollar amounts in millions)
September 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Fair value, beginning of period
$752
$567
$593
$573
Servicing assets obtained in acquisition
—
`
`
—
140
—
New servicing assets created
35
27
103
67
Change in fair value during the period due to:
Time decay (1)
(8)
(6)
(24)
(20)
Payoffs (2)
(14)
(11)
(43)
(28)
Changes in valuation inputs or assumptions (3)
72
(1)
68
(16)
Fair value, end of period
$837
$576
$837
$576
Related loans serviced for third parties, unpaid principal balance,
end of period
$43,861
$34,370
$43,861
$34,370
(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.
Summary of Key Assumptions and the Sensitivity of the Servicing Rights Value to Changes in the Assumptions The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these
assumptions.
At September 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)
6.61%
$(19)
$(37)
8.09%
$(17)
$(33)
Spread over forward interest rate swap rates
543
bps
(19)
(38)
538
bps
(14)
(27)