Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 76

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 76
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s which the Company has consolidated, primarily related to these transfers. These amounts compared to $6.4 billion and $4.2 billion, respectively, at December 31, 2024. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. 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. 

46U.S. Bancorp

 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 $216.7 billion of residential mortgage loans for others at March 31, 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, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $2 million and net losses of $3 million for the three months ended March 31, 2025 and 2024, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $172 million and $180 million for the three months ended March 31, 2025 and 2024, respectively. Changes in fair value of capitalized MSRs are summarized as follows:  Three Months EndedMarch 31(Dollars in Millions)20252024Balance at beginning of period$3,369 $3,377 Rights capitalized59 55 Rights sold1 — Changes in fair value of MSRsDue to fluctuations in market interest rates(a)(49)103 Due to revised assumptions or models(b)4 8 Other changes in fair value(c) (72)(81)Balance at end of period$3,312 $3,462 (a)Includes changes in