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Assets Held for Sale and Associated Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Assets and Liabilities Related to the Sale A summary of these items are shown below:
(in millions)
September 30, 2024
Mortgage servicing rights
$1,105 
Loans
465 
Other assets
61 
Assets held for sale$1,631 
Other liabilities
$471 
Liabilities associated with assets held for sale$471 
Schedule of Changes in the Fair Value of Residential First Mortgage MSRs
Changes in the fair value of residential first mortgage servicing rights ("MSRs") were as follows:

Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Balance at beginning of period$1,122 $1,031 $1,111 $1,033 
Additions from loans sold with servicing retained58 67 158 148 
Reductions from sales— — (69)(51)
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1)
(31)(20)(91)(54)
Changes in estimates of fair value due to interest rate risk (1) (2)
(44)57 (4)59 
Fair value of MSRs at end of period$1,105 $1,135 $1,105 $1,135 
(1)Changes in fair value are included within net return on mortgage servicing rights on the Consolidated Statements of Income and Comprehensive Income.
(2)Represents estimated MSR value change resulting primarily from market-driven changes which we manage through the use of derivatives.
Schedule of Adverse Changes to Weighted-Average Assumptions on the Fair Value of Servicing Rights
The following table summarizes the hypothetical effect on fair value of servicing rights using adverse changes of 10 percent and 20 percent to the weighted average of certain significant assumptions used in valuing these assets:

September 30, 2024
Fair Value
(dollars in millions)Actual10% adverse change20% adverse change
Option adjusted spread5.0 %$(20)$(38)
Constant prepayment rate8.3 %(46)(87)
Weighted average cost to service per loan$68 $(11)$(22)

December 31, 2023
Fair Value
(dollars in millions)Actual10% adverse change20% adverse change
Option adjusted spread5.4 %$(20)$(39)
Constant prepayment rate7.9 %(37)(71)
Weighted average cost to service per loan$69 $(10)$(21)
Schedule of Income and Fees
The following table summarizes income and fees associated with owned mortgage servicing rights:

Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Net return on mortgage servicing rights
Servicing fees, ancillary income and late fees (1)
$60 $59 $176 $169 
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes and other(31)(20)(91)(54)
Changes in fair value due to interest rate risk(44)57 (4)59 
Gain on MSR derivatives (2)
48 (73)(7)(105)
Net transaction costs1 — — 1 
Total return (loss) included in net return on mortgage servicing rights$34 $23 $74 $70 
(1)Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis.
(2)Changes in the derivatives utilized as economic hedges to offset changes in fair value of the mortgage servicing rights.

The following table summarizes income and fees associated with our mortgage loans subserviced for others:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2024202320242023
Loan administration income on mortgage loans subserviced
Servicing fees, ancillary income and late fees (1)
$34 $42 $104 $116 
Charges on subserviced custodial balances (2)
(47)(55)(125)(124)
Other servicing charges—(1)2(3)
Total income (loss) on mortgage loans subserviced, included in loan administration income
$(13)$(14)$(19)$(11)
(1)Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis.
(2)Charges on subserviced custodial balances represent interest due to MSR owner.