Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 176

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 176
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 position.Dollars in millionsMarch 31, 2025December 31, 2024Net derivative liabilities with credit-risk contingent features$(303)$(83)Collateral posted264 80 

As of March 31, 2025, and December 31, 2024, the fair value of additional collateral that could be required to be posted as a result of the credit risk related contingent features being triggered was immaterial to Key’s consolidated financial statements. At March 31, 2025, and December 31, 2024, only KeyBank held derivative contracts with credit risk contingent features. 

8. Mortgage Servicing Assets We originate and periodically sell commercial and residential mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans from other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Servicing Assets” beginning on page 117 of our 2024 Form 10-K. CommercialChanges in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended March 31,Dollars in millions20252024Balance at beginning of period$609 $638 Servicing retained from loan sales15 18 Purchases4 6 Amortization(31)(31)Balance at end of period$597 $631 Fair value at end of period$805 $846 The fair value of commercial 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 determine the fair value of our commercial mortgage servicing assets at March 31, 2025, and March 31, 2024, along with the valuation techniques, are shown in the following table: March 31, 2025March 31, 2024Valuation TechniqueSignificantUnobservable InputRangeWeighted AverageRangeWeighted AverageDiscounted cash flowExpected defaults1.00 %2.00 %1.01 %1.00 %2.00 %1.01 %Residual cash flows discount rate6