Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 201

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 201
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 prepay the mortgage. The amortization of commercial servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of commercial servicing assets for each period, as shown 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 $209 million for the six-month period ended June 30, 2025, and $180 million for the six-month period ended June 30, 2024. This fee income was offset by $62 million of amortization for the six-month period ended June 30, 2025, and $63 million for the six-month period ended June 30, 

80

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 June 30,Six months ended June 30,Dollars in millions2025202420252024Balance at beginning of period$111 $108 $111 $108 Servicing retained from loan sales4 3 7 5 Amortization(3)(3)(6)(5)Temporary (impairments) recoveries— 1 — 1 Balance at end of period$112 $109 $112 $109 Fair value at end of period$136 $133 $136 $133  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 June 30, 2025, and June 30, 2024, along with the valuation techniques, are shown in the following table:June 30, 2025June 30, 2024Valuation TechniqueSignificantUnobservable InputRangeWeighted AverageRangeWeighted AverageDiscounted cash flowPrepayment speed5.88 %30.58 %8.09 %6.59 %47.09 %7.66 %Discount rate6.50 %8.75 %6.61 %6.50 %8.75 %6.60 %Servicing cost$70.00