Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 249

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 249
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 ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.GuaranteesWe are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at March 31, 2025. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Contingencies and Guarantees” beginning on page 118 of our 2024 Form 10-K.March 31, 2025Maximum Potential Undiscounted Future PaymentsLiability RecordedDollars in millionsFinancial guarantees:Standby letters of credit$4,403 $71 Recourse agreement with FNMA7,817 60 Residential mortgage reserve3,398 8 Written put options (a)1,839 47 Total$17,457 $186 (a)The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low (0% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at March 31, 2025, is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Guarantees” beginning on page 172 of our 2024 Form 10-K.Standby letters of credit. At March 31, 2025, our standby letters of credit had a remaining weighted-average life of 1.4 years, with remaining actual lives ranging from less than 1 year to 9.7 years.Recourse agreement with FNMA. At March 31, 2025, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 6.2 years