Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 90

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 90
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. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee. 

 NOTE 6Mortgage Servicing RightsThe Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $216.1 billion of residential mortgage loans for others at September 30, 2025, and $216.6 billion at December 31, 2024, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, including a gain on the sale of MSRs in the second quarter of 2024, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $12 million and net losses of $10 million for the three months ended September 30, 2025 and 2024, respectively, and net gains of $10 million and $11 million for the nine months ended September 30, 2025 and 2024, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $173 million and $170 million for the three months ended September 30, 2025 and 2024, respectively, and $517 million and $526 million for the nine months ended September 30, 2025 and 2024, respectively. Changes in fair value of capitalized MSRs are summarized as follows:  Three Months EndedSeptember 30Nine Months EndedSeptember 30(Dollars in Millions)2025202420252024Balance at beginning of period$3,305 $3,326 $3,369 $3,377 Rights purchased— — — 1 Rights capitalized71 72 194 191 Rights sold1 1 2 (188)Changes in fair value of MSRsDue to fluctuations in market interest rates(a)(3)(121)(43)27 Due to revised assumptions or models(b)13 3 23 44 Other changes in fair value(c) (98