Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 90

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 90
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 earnings during the period in which they occur. The Company serviced $220.8 billion of residential mortgage loans for others at June 30, 2025, and $216.6 billion at December 31, 2024, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, including a gain on the sale of mortgage servicing rights in the second quarter of 2024, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net losses of $4 million and net gains of $24 million for the three months ended June 30, 2025 and 2024, respectively, and net losses of $2 million and net gains of  $21 million for the six months ended June 30, 2025 and 2024, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $172 million and $176 million for the three months ended June 30, 2025 and 2024, respectively, and $344 million and $356 million for the six months ended June 30, 2025 and 2024, respectively. Changes in fair value of capitalized MSRs are summarized as follows:  Three Months EndedJune 30Six Months EndedJune 30(Dollars in Millions)2025202420252024Balance at beginning of period$3,312 $3,462 $3,369 $3,377 Rights purchased— 1 — 1 Rights capitalized64 64 123 119 Rights sold— (189)1 (189)Changes in fair value of MSRsDue to fluctuations in market interest rates(a)9 45 (40)148 Due to revised assumptions or models(b)6 33 10 41 Other changes in fair value(c) (86)(90)(158)(171)Balance at end of period$3,305 $3,326 $3,305 $3,326 (a)Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (b)Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. (c