Annual report pursuant to Section 13 and 15(d)

Mortgage Servicing Rights (Tables)

v3.6.0.2
Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2016
Transfers and Servicing [Abstract]  
Activity for Residential First Mortgage MSRs
The table below presents activity for residential mortgage and home equity MSRs for 2016 and 2015.
 
 
 
 
Rollforward of Mortgage Servicing Rights
 
 
 
 
(Dollars in millions)
2016
 
2015
Balance, January 1
$
3,087

 
$
3,530

Additions
411

 
637

Sales
(80
)
 
(393
)
Amortization of expected cash flows (1)
(820
)
 
(874
)
Changes in fair value due to changes in inputs and assumptions (2)
149

 
187

Balance, December 31 (3)
$
2,747

 
$
3,087

Mortgage loans serviced for investors (in billions)
$
326

 
$
394

(1) 
Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
(2) 
These amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads, and the shape of the forward swap curve; periodic adjustments to valuation based on third-party price discovery; and periodic adjustments to the valuation model and other cash flow assumptions.
(3) 
At December 31, 2016, includes the $2.1 billion core MSR portfolio held in Consumer Banking, the $212 million non-core MSR portfolio held in All Other and the $469 million non-U.S. MSR portfolio held in Global Markets compared to $2.3 billion, $355 million and $407 million at December 31, 2015, respectively.