Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 294

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 294
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 be significant to the VIEs. The risk retention interests held by the Bancorp were included in available-for-sale debt and other securities in the Consolidated Balance Sheets. 

152 Fifth Third Bancorp

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13. Sales of Receivables and Servicing Rights

Residential Mortgage Loan SalesThe Bancorp sold fixed and adjustable-rate residential mortgage loans during the years ended December 31, 2024, 2023 and 2022. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates.Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows:($ in millions)202420232022Residential mortgage loan sales(a)$3,954 4,888 13,307 Origination fees and gains on loan sales67 79 91 Gross mortgage servicing fees309 319 310 (a)Represents the unpaid principal balance at the time of the sale.Servicing RightsThe Bancorp measures all of its mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Consolidated Statements of Income.The following table presents changes in the servicing rights related to residential mortgage loans for the years ended December 31:($ in millions)20242023Balance, beginning of period$1,737 1,746 Servicing rights originated49 71 Servicing rights purchased— 25 Servicing rights sold(5)— Changes in fair value:Due to changes in inputs or assumptions(a)74 43 Other changes in fair value(b)(151)(148)Balance, end of period$1,704 1,737 (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. This strategy may include the purchase of free-standing derivatives and various