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Servicing of Financial Assets (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing of Financial Assets [Abstract]

Schedule of Residential Mortgage Servicing Rights Under The Fair Value Measurement Method

The table below presents an analysis of residential MSRs under the fair value measurement method: 

			Three Months Ended March 31
			2024						2023
			(In millions)
Carrying value, beginning of year			$	906					$	812
Additions			5						4
Purchases (1)			125						10
Increase (decrease) in fair value(2):
Due to change in valuation inputs or assumptions			19						(12)
Economic amortization associated with borrower repayments (3)			(29)						(24)
Carrying value, end of year			$	1,026					$	790

_________

(1)Purchases of residential MSRs can be structured with cash hold back provisions, therefore the timing of payment may be made in future periods.

(2)Included in mortgage income. Amounts presented exclude offsetting impact from related derivatives.

(3)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data And Assumptions Used In The Fair Value Calculation As Well As The Valuation's Sensitivity To Rate Fluctuations Related To Mortgage Servicing Rights

Data and assumptions used in the fair value calculation, as well as the valuation’s sensitivity to rate fluctuations, related to residential MSRs (excluding related derivative instruments): 

			March 31
			2024						2023
			(Dollars in millions)
Unpaid principal balance			$	69,708					$	54,557
Weighted-average CPR (%)			8.2		%				7.7		%
Estimated impact on fair value of a 10% increase			$	(46)					$	(43)
Estimated impact on fair value of a 20% increase			$	(89)					$	(84)
Option-adjusted spread (basis points)			486						546
Estimated impact on fair value of a 10% increase			$	(22)					$	(19)
Estimated impact on fair value of a 20% increase			$	(44)					$	(38)
Weighted-average coupon interest rate			3.7		%				3.6		%
Weighted-average remaining maturity (months)			302						306
Weighted-average servicing fee (basis points)			27.1						27.1

X

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

+ Details

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Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

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X

- References

No definition available.

+ Details

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