XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.25.1

MORTGAGE BANKING AND OTHER SERVICED LOANS | 3 Months Ended
--- | ---
Mar. 31, 2025
Mortgage Banking [Abstract] |
MORTGAGE BANKING AND OTHER SERVICED LOANS | NOTE 5 - MORTGAGE BANKING AND OTHER SERVICED LOANS Mortgage Banking The Company sells residential mortgages into the secondary market and retains no beneficial interest in these sales, but may retain the servicing rights for the loans sold. The Company may exercise its option to repurchase eligible government guaranteed residential mortgages or may be obligated to subsequently repurchase a loan if the purchaser discovers a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud that should have been identified in a loan file review. The following table summarizes activity related to residential mortgage loans sold with servicing rights retained:
| Three Months Ended March 31, |  |
(dollars in millions) | 2025 |  | 2024 |  |  |  |
Cash proceeds from residential mortgage loans sold with servicing retained | $1,658 |  |  | $1,488 |  |  |  |  |
Gain on sales(1) | 16 |  |  | 15 |  |  |  |  |
Contractually specified servicing, late and other ancillary fees(1) | 70 |  |  | 79 |  |  |  |  |
(1) Reported in mortgage banking fees in the Consolidated Statements of Operations. The unpaid principal balance of residential mortgage loans related to our MSRs was $95.2 billion and $95.6 billion at March 31, 2025 and December 31, 2024, respectively. The Company manages the risk associated with changes in the value of the MSRs with an active economic hedging strategy, which includes the purchase of freestanding derivatives. The following table summarizes changes in MSRs recorded using the fair value method:
|  |  | As of and for the Three Months Ended March 31,
(dollars in millions) |  |  |  |  | 2025 |  | 2024
Fair value as of beginning of the period |  |  |  |  | $1,491 |  |  | $1,552 |
Amounts capitalized |  |  |  |  | 27 |  |  | 18 |
Sales(1) |  |  |  |  | (72) |  |  | — |
Changes in unpaid principal balance during the period(2) |  |  |  |  | (39) |  |  | (46) |
Changes in fair value during the period(3) |  |  |  |  | (10) |  |  | 40 |
Fair value at end of the period |  |  |  |  | $1,397 |  |  | $1,564 |
(1) For the three months ended March 31, 2025, represents the sale of the excess servicing yield on MSRs related to certain FNMA mortgages with a total unpaid principal balance of $10.5 billion. (2) Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. (3) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. The fair value of MSRs is estimated by using the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, contractual servicing fee income, servicing costs, default rates, ancillary income, and other economic factors determined based on current market interest rates. The valuation does not attempt to forecast or predict the future direction of interest rates. The sensitivity analysis below presents the impact of an immediate 10% and 20% adverse change in key economic assumptions to the current fair value of MSRs. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the MSRs calculated independently without changing any other assumption. Changes in one factor may result in changes in another (e.g., changes in interest rates that drive changes in prepayment rates could result in changes in discount rates) and may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is largely dependent upon movements in market interest rates.
(dollars in millions) | March 31, 2025 |  | December 31, 2024
Fair value | $1,397 |  | $1,491
Weighted average life (years) | 8.5 |  | 8.7
Weighted average constant prepayment rate | 7.1% |  | 6.7%
Decline in fair value from 10% adverse change | $35 |  | $35
Decline in fair value from 20% adverse change | $67 |  | $67
Weighted average option adjusted spread | 628 bps |  | 632 bps
Decline in fair value from 10% adverse change | $40 |  | $42
Decline in fair value from 20% adverse change | $79 |  | $84
The Company has mortgage banking derivatives that include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Refer to Note 8 for additional information. Other Serviced Loans The Company engages in other servicing relationships from time to time. The following table presents the unpaid principal balance of other serviced loans:
(dollars in millions) | March 31, 2025 |  | December 31, 2024
Education | $397 |  |  | $420 |
Commercial and industrial(1) | 90 |  |  | 92 |
(1) Represents the government guaranteed portion of SBA loans sold to outside investors

X
- Definition The entire disclosure for an entity’s mortgage banking operations. + References No definition available. + Details
Name: | cfg_MortgageServicingRightsTextBlock
Namespace Prefix: | cfg_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_MortgageBankingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration