Quarterly report [Sections 13 or 15(d)]

Securitizations and Other Variable Interest Entities (Tables)

v3.25.1
Securitizations and Other Variable Interest Entities (Tables)
3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Mortgage Related Securitizations
The table below summarizes select information related to first-lien mortgage securitizations for the three months ended March 31, 2025 and 2024.
First-lien Mortgage Securitizations
Residential Mortgage - Agency Commercial Mortgage
Three Months Ended March 31
(Dollars in millions) 2025 2024 2025 2024
Proceeds from loan sales (1)
$ 1,095  $ 1,209  $ 5,490  $ 1,309 
Gains (losses) on securitizations (2)
(2) —  46  19 
Repurchases from securitization trusts (3)
21    — 
(1)The Corporation transfers residential mortgage loans to securitizations sponsored primarily by the GSEs or GNMA in the normal course of business and primarily receives residential mortgage-backed securities in exchange. Substantially all of these securities are classified as Level 2 within the fair value hierarchy and are typically sold shortly after receipt.
(2)A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization, which totaled $6 million and $5 million, net of hedges, during the three months ended March 31, 2025 and 2024, are not included in the table above.
(3)The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities
The following table summarizes the maximum loss exposure and assets held by the Corporation that related to other asset-backed VIEs at March 31, 2025 and December 31, 2024.
Other Asset-backed VIEs
 
Credit Card and
 Automobile (1)
Resecuritization Trusts and Customer VIEs Municipal Bond Trusts
and CDOs
Investment VIEs and Leveraged Lease Trusts
(Dollars in millions) March 31
2025
December 31
2024
March 31
2025
December 31
2024
March 31
2025
December 31
2024
March 31
2025
December 31
2024
Unconsolidated VIEs        
Maximum loss exposure $   $ —  $ 4,182  $ 5,300  $ 1,860  $ 1,839  $ 2,535  $ 2,454 
On-balance sheet assets        
Securities (2):
       
Trading account assets $   $ —  $ 3,233  $ 1,641  $ 16  $ 16  $ 224  $ 354 
Debt securities carried at fair value
  —  801  809    —    — 
Held-to-maturity securities   —  1,926  1,983    —    — 
Loans and leases   —    —      71  70 
Allowance for loan and lease losses   —    —    —  (2) (2)
All other assets   —  949  868  5  1,724  1,522 
Total retained positions $   $ —  $ 6,909  $ 5,301  $ 21  $ 22  $ 2,017  $ 1,944 
Total assets of VIEs $   $ —  $ 32,552  $ 24,216  $ 6,538  $ 6,474  $ 23,220  $ 22,965 
Consolidated VIEs        
Maximum loss exposure $ 8,603  $ 9,385  $ 460  $ 583  $ 4,502  $ 3,519  $ 1,025  $ 1,012 
On-balance sheet assets        
Trading account assets $   $ —  $ 879  $ 1,002  $ 4,131  $ 3,436  $ 4  $
Debt securities carried at fair value   —    —  371  83    — 
Loans and leases 17,000  18,110    —    —  1,025  1,012 
Allowance for loan and lease losses
(916) (924)   —    —  (1) (1)
All other assets 188  195  47  39    —  1 
Total assets $ 16,272  $ 17,381  $ 926  $ 1,041  $ 4,502  $ 3,519  $ 1,029  $ 1,017 
On-balance sheet liabilities        
Short-term borrowings
$   $ —  $   $ —  $ 4,289  $ 3,329  $   $ — 
Long-term debt 7,648  7,975  457  458    —  4 
All other liabilities 21  21  9  —    —    — 
Total liabilities $ 7,669  $ 7,996  $ 466  $ 458  $ 4,289  $ 3,329  $ 4  $
(1)At March 31, 2025 and December 31, 2024 loans and leases in the consolidated credit card trust included $3.7 billion and $4.5 billion of seller’s interest.
(2)The retained senior securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).
Mortgage And Home Equity Securitizations  
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities
The table below summarizes select information related to mortgage and home equity securitization trusts in which the Corporation held a variable interest and had continuing involvement at March 31, 2025 and December 31, 2024.
Mortgage and Home Equity Securitizations
Residential Mortgage    
      Non-agency    
  Agency Prime and Alt-A Subprime
Home Equity (1)
Commercial Mortgage
(Dollars in millions) March 31
2025
December 31
2024
March 31
2025
December 31
2024
March 31
2025
December 31
2024
March 31
2025
December 31
2024
March 31
2025
December 31
2024
Unconsolidated VIEs                    
Maximum loss exposure (2)
$ 7,319  $ 7,353  $ 83  $ 84  $ 259  $ 301  $   $ —  $ 1,771  $ 1,640 
On-balance sheet assets
                   
Senior securities:
                   
Trading account assets
$ 205  $ 126  $ 9  $ 10  $ 5  $ 12  $   $ —  $ 454  $ 328 
Debt securities carried at fair value
2,202  2,222    —  414  416    —    — 
Held-to-maturity securities
4,912  5,005    —    —    —  1,142  1,172 
All other assets   —  3  15  23    —  31  41 
Total retained positions
$ 7,319  $ 7,353  $ 12  $ 13  $ 434  $ 451  $   $ —  $ 1,627  $ 1,541 
Principal balance outstanding (3)
$ 68,134  $ 69,018  $ 12,205  $ 12,590  $ 3,863  $ 4,180  $   $ 187  $ 93,548  $ 90,222 
Consolidated VIEs                    
Maximum loss exposure (2)
$ 793  $ 1,132  $   $ —  $ 13  $ —  $ 10  $ 10  $   $ — 
On-balance sheet assets
                   
Trading account assets
$ 793  $ 1,132  $   $ —  $ 255  $ —  $   $ —  $   $ — 
Loans and leases   —    —    —  20  22    — 
Allowance for loan and lease
   losses
  —    —    —  6    — 
All other assets   —    —    —  1    — 
Total assets $ 793  $ 1,132  $   $ —  $ 255  $ —  $ 27  $ 29  $   $ — 
Total liabilities $   $ —  $   $ —  $ 242  $ —  $ 17  $ 19  $   $ — 
(1)For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For more information, see Note 10 – Commitments and Contingencies.
(2)Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For more information, see Note 10 – Commitments and Contingencies and Note 14 – Fair Value Measurements.
(3)Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing the loans.
Tax Credit Vehicles  
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities
The table below summarizes select information related to unconsolidated tax credit VIEs in which the Corporation held a variable interest at March 31, 2025 and December 31, 2024.
Unconsolidated Tax Credit VIEs
(Dollars in millions) March 31
2025
December 31
2024
Maximum loss exposure $ 28,982  $ 29,727 
On-balance sheet assets    
All other assets 28,982  29,727 
Total $ 28,982  $ 29,727 
On-balance sheet liabilities    
All other liabilities 7,231  7,599 
Total $ 7,231  $ 7,599 
Total assets of VIEs $ 84,977  $ 85,654