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Sales of Receivables and Servicing Rights | 9 Months Ended
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Sep. 30, 2025
Transfers and Servicing [Abstract] |
Sales of Receivables and Servicing Rights | Sales of Receivables and Servicing Rights Residential Mortgage Loan Sales The Bancorp sold residential mortgage loans during the three and nine months ended September 30, 2025 and 2024. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:
| For the three months ended September 30, | For the nine months ended September 30,
($ in millions) | 2025 | 2024 | 2025 | 2024
Residential mortgage loan sales(a) | $ | 1,379 |  | 1,327 |  | 3,554 |  | 2,802 |
Origination fees and gains on loan sales | 22 |  | 18 |  | 56 |  | 50 |
Gross mortgage servicing fees | 73 |  | 77 |  | 219 |  | 233 |
(a)Represents the unpaid principal balance at the time of the sale. Servicing Rights The Bancorp measures all of its mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The following table presents changes in the servicing rights related to residential mortgage loans for the nine months ended September 30:
($ in millions) | 2025 | 2024
Balance, beginning of period | $ | 1,704 |  | 1,737 |
Servicing rights originated | 36 |  | 36 |
Servicing rights sold | — |  | (5) |
Changes in fair value: |  |
Due to changes in inputs or assumptions(a) | (24) |  | 1 |
Other changes in fair value(b) | (115) |  | (113) |
Balance, end of period | $ | 1,601 |  | 1,656 |
(a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b)Primarily reflects changes due to realized cash flows and the passage of time. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio which may include the use of investment securities or derivative instruments. Refer to Note 9 for additional information on derivative instruments used for this purpose. The key economic assumptions used in measuring the servicing rights related to residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended September 30, 2025 and 2024 were as follows:
| September 30, 2025 |  | September 30, 2024
| Weighted- Average Life (in years) | Prepayment Speed (annual) | OAS (bps) |  | Weighted- Average Life (in years) | Prepayment Speed (annual) | OAS (bps)
Fixed-rate | 5.9 | 13.4 | % | 481 |  | 5.8 | 15.4 | % | 494
At September 30, 2025 and December 31, 2024, the Bancorp serviced $89.6 billion and $94.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the MSR portfolio was 3.84% and 3.79% at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS for servicing rights related to residential mortgage loans are as follows:
($ in millions)(a) |  |  | Prepayment Speed Assumption |  | OAS Assumption
Fair Value | Weighted- Average Life (in years) |  | Impact of Adverse Change on Fair Value |  | OAS (bps) | Impact of Adverse Change on Fair Value
Rate | 10% | 20% | 50% |  | 10% | 20%
Fixed-rate | $ | 1,598 |  | 8.0 | 6.9 | % | $ | (38) |  | (75) |  | (172) |  |  | 441 | $ | (33) |  | (65) |
Adjustable-rate | 3 |  | 4.6 | 18.9 |  | — |  | (1) |  | (2) |  |  | 714 | — |  | — |
(a)The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes that variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI 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