Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 142

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 142
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 Origination fees and gains on loan sales22 18 56 50 Gross mortgage servicing fees73 77 219 233 (a)Represents the unpaid principal balance at the time of the sale.Servicing RightsThe 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)20252024Balance, beginning of period$1,704 1,737 Servicing rights originated36 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, 2025September 30, 2024Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Fixed-rate5.913.4 %4815.815.4  %494At 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, 202