Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 254

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 254
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 maximum exposure to loss is equal to the carrying amount of the investments. The Bancorp has determined that it is not the primary beneficiary of the VIEs because it does not have the obligation to absorb the VIEs expected losses or the right to receive the VIEs expected residual returns that could potentially 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 Condensed Consolidated Balance Sheets. 

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Table of ContentsFifth Third Bancorp and SubsidiariesNotes to Condensed Consolidated Financial Statements (unaudited)

8.  Sales of Receivables and Servicing Rights

Residential Mortgage Loan SalesThe Bancorp sold residential mortgage loans during the three months ended March 31, 2025 and 2024. 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 Condensed Consolidated Statements of Income, is as follows:For the three months endedMarch 31,($ in millions)20252024Residential mortgage loan sales(a)$1,003 714 Origination fees and gains on loan sales14 14 Gross mortgage servicing fees74 78 (a)Represents the unpaid principal balance at the time of the sale.Servicing RightsThe Bancorp measures all of its mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.The following table presents changes in the servicing rights related to residential mortgage loans for the three months ended March 31:($ in millions)20252024Balance, beginning of period$1,704 1,737 Servicing rights originated9 11 Changes in fair value:Due to changes in inputs or assumptions(a)(16)41 Other changes in fair value(b)(34)(33)Balance, end of period$1,663 1,756 (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