Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 256

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 256
---
 LOANS Mortgage BankingThe Company sells residential mortgages in the secondary market and does not retain a 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 June 30,Six Months Ended June 30,(dollars in millions)2025202420252024Cash proceeds from residential mortgage loans sold with servicing retained$2,734 $1,807 $4,392 $3,295 Gain on sales(1)21 15 37 30 Contractually specified servicing, late and other ancillary fees(1)69 77 139 156 (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 $95.4 billion and $95.6 billion at June 30, 2025 and December 31, 2024, respectively. The Company manages the risk associated with changes in the fair 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 June 30,As of and for the Six Months Ended June 30,(dollars in millions)2025202420252024Fair value as of beginning of the period$1,397 $1,564 $1,491 $1,552 Amounts capitalized48 25 75 43 Sales(1)— — (72)— Changes in unpaid principal balance(2)(40)(43)(79)(89)Changes in fair value(3)21 22 11 62 Fair value at end of the period$1,426 $1,568 $1,426 $1,568 (1) For the six months ended June 30, 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 at the time of sale.(2) Represents changes in value of the MSRs due to i