Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 271

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 271
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 in the table at the beginning of this note, is recorded as a reduction to contractual fee income. The contractual fee income from servicing commercial mortgage loans totaled $307 million for the nine-month period ended September 30, 2025, and $284 million for the nine-month period ended September 30, 2024. This fee income was offset by $94 million of amortization for the nine-month period ended September 30, 2025, and $93 million for the nine-month 

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period ended September 30, 2024. Both the contractual fee income and the amortization are recorded, net, in “commercial mortgage servicing fees” on the income statement.ResidentialChanges in the carrying amount of residential mortgage servicing assets are summarized as follows:Three months ended September 30,Nine months ended September 30,Dollars in millions2025202420252024Balance at beginning of period$112 $109 $111 $108 Servicing retained from loan sales4 4 11 9 Amortization(3)(3)(9)(8)Temporary (impairments) recoveries(1)(2)(1)(1)Balance at end of period$112 $108 $112 $108 Fair value at end of period$136 $129 $136 $129  The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at September 30, 2025, and September 30, 2024, along with the valuation techniques, are shown in the following table:September 30, 2025September 30, 2024Valuation TechniqueSignificantUnobservable InputRangeWeighted AverageRangeWeighted AverageDiscounted cash flowPrepayment speed6.33 %32.33 %8.45 %7.08 %53.34 %8.33 %Discount rate6.50 %8.75 %6.61 %6.50 %8.75 %6.60 %Servicing cost$70.00 $4,332 $76.08 $70.00 $3,582 $75.25  If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing