Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 151

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 151
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 particular period, depending upon the size of the loss or our income for that particular period.

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GuaranteesWe are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at December 31, 2024. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Contingencies and Guarantees.”December 31, 2024Maximum Potential Undiscounted Future PaymentsLiability RecordedDollars in millionsFinancial guarantees:Standby letters of credit$4,441 $75 Recourse agreement with FNMA7,770 60 Residential mortgage reserve3,396 9 Written put options (a)2,117 79 Total$17,724 $223 (a)The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low (0% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at December 31, 2024, is low.Standby letters of credit.  KeyBank issues standby letters of credit to address clients’ financing needs. These instruments obligate us to pay a specified third party when a client fails to repay an outstanding loan or debt instrument or fails to perform some contractual nonfinancial obligation. Any amounts drawn under standby letters of credit are treated as loans to the client; they bear interest (generally at variable rates) and pose the same credit risk to us as a loan. At December 31, 2024, our standby letters of credit had a remaining weighted-average life of 1.4 years, with remaining actual lives ranging from less than 1 year to 9.9 years.Recourse agreement with FNMA.   At December 31, 2024, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 6.3 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $24.7