v3.26.3
Loan Servicing
 9 Months Ended
Sep. 30, 2026
Transfers and Servicing [Abstract]  
Loan Servicing Loan Servicing
The Company acquires servicing rights and retains servicing rights related to certain of its sales or securitizations of residential mortgages, commercial mortgages, and other consumer loans. Servicing rights are capitalized by the Company as Loan servicing rights on the Consolidated Balance Sheets. Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.

Residential Mortgage Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)Sep 30, 2026Dec 31, 2025
UPB of residential mortgage loan servicing portfolio$325,810 $285,966 
UPB of residential mortgage loans serviced for others, primarily agency-conforming fixed-rate
267,522 228,383 
As of / For the Nine Months Ended September 30,
(Dollars in millions)
20262025
UPB of residential mortgage loans sold from LHFS$12,613 $7,937 
Pre-tax gains recognized on mortgage loans sold and held for sale56 53 
Servicing fees recognized from mortgage loans serviced for others516 464 
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others
0.29 %0.28 %
Weighted average interest rate on mortgage loans serviced for others3.80 3.75 

The following table presents a rollforward of residential MSRs recorded at fair value:

(Dollars in millions)20262025
Residential MSRs, carrying value, January 1$3,724 $3,431 
Acquired755 182 
Additions306 160 
Change in fair value due to changes in valuation inputs or assumptions
313 (16)
Realization of expected net servicing cash flows, passage of time, and other(290)(233)
Residential MSRs, carrying value, September 30$4,808 $3,524 

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table. The sensitivity calculations below are hypothetical and should not be considered predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change.

September 30, 2026December 31, 2025
RangeWeighted AverageRangeWeighted Average
(Dollars in millions)MinMaxMinMax
Prepayment speed5.8 %8.5 %6.4 %6.1 %13.9 %7.2 %
Effect on fair value of a 10% increase$(124)$(107)
Effect on fair value of a 20% increase(240)(208)
OAS1.3 %12.0 %3.8 %1.4 %12.2 %4.4 %
Effect on fair value of a 10% increase$(81)$(75)
Effect on fair value of a 20% increase(159)(146)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans99.5 %99.7 %
Adjustable-rate residential mortgage loans
0.5 0.3 
Total100.0 %100.0 %
Weighted average life7.9 years7.6 years
Commercial Mortgage Activities

The following tables summarize commercial mortgage servicing activities:

(Dollars in millions)Sep 30, 2026Dec 31, 2025
UPB of CRE mortgages serviced for others$27,348 $26,152 
Commercial MSRs at fair value241 228 
Nine Months Ended September 30,
(Dollars in millions)
20262025
CRE mortgages originated
$1,958 $937