Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 115

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 115
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million for the year ended December 31, 2024, $314 million for the year ended December 31, 2023, and $292 million for the year ended December 31, 2022. This fee income was partially offset by $124 million of amortization for the year ended December 31, 2024, $123 million for the year ended December 31, 2023, and $125 million for the year ended December 31, 2022. 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:Dollars in millions20242023Balance at beginning of period$108 $106 Servicing retained from loan sales13 12 Purchases— — Amortization(11)(9)Temporary recoveries (impairments)1 (1)Balance at end of period$111 $108 Fair value at end of period$138 $132 The fair value of residential 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 residential mortgage servicing assets along with the valuation techniques, are shown in the following table:December 31, 2024December 31, 2023Valuation TechniqueSignificantUnobservable InputRangeWeighted-AverageRangeWeighted-AverageDiscounted cash flowPrepayment speed5.42 %46.30 %7.69 %6.27 %44.47 %7.70 %Discount rate6.50 %8.75 %6.61 %6.50 %8.75 %6.59 %Servicing cost$70.00 $4,332 $75.99 $70.00 $3,582 $75.02 If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost    are critical to the valuation of residential mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the residential mortgage loans, industry trends, and other considerations. Actual rates