NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  of a loan from the Bancorp or syndication through which the  Bancorp is involved. The sponsor/administrator of the entities is  responsible for servicing the underlying assets in the VIEs. Because  the sponsor/administrator, not the Bancorp, holds the servicing  responsibilities, which include the establishment and employment  of default mitigation policies and procedures, the Bancorp does not  hold the power to direct the activities most significant to the  economic performance of the entity and, therefore, is not the  primary beneficiary.  The principle risk to which these entities are exposed is credit  risk related to the underlying assets. The Bancorp’s maximum  exposure to loss is equal to the carrying amounts of the loans and  unfunded commitments to the VIEs. As of December 31, 2010  and 2009, the Bancorp had outstanding loans to these VIEs of $1.2  billion included in commercial loans in the Consolidated Balance  Sheets. Also as of December 31, 2010 and 2009, the Bancorp’s  unfunded commitments to these entities were $733 million and  $539 million, respectively. The loans and unfunded commitments  to these VIEs are included in the Bancorp’s overall analysis of the  allowance for loan and lease losses and reserve for unfunded  commitments, respectively. The Bancorp does not provide any  implicit or explicit liquidity guarantees or principal value guarantees to these VIEs.  Restructured Loans  As part of loan restructuring efforts in 2009 and 2010, the Bancorp  received equity capital from certain borrowers to facilitate the  restructuring of the borrower’s debt. These borrowers meet the  definition of a VIE because the Bancorp was involved in their  refinancing and because their equity capital is insufficient to fund  ongoing operations. These restructurings were intended to provide  the VIEs with serviceable debt levels while providing the Bancorp  an opportunity to maximize the recovery of the loans. The VIEs  finance their operations from earned income, capital contributions,  and through restructured debt agreements. Assets of the VIEs are  used to settle their specific obligations, including loan payments  due to the Bancorp. The Bancorp continues to maintain its  relationship with these VIEs as a lender and minority shareholder,  however, it is not involved in management decisions and does not  have sufficient voting rights to control the membership of the  respective boards. Therefore, the Bancorp accounts for its equity  investments in these VIEs under the equity method or cost  method based on its percentage of ownership and ability to  exercise significant influence.  The Bancorp’s maximum exposure to loss as a result of its  involvement with these VIEs is limited to the equity investments,  the principal and accrued interest on the outstanding loans, and any  unfunded commitments. Due to the VIEs’ short-term cash deficit  projections at the restructuring dates, the Bancorp determined that  the fair value of its equity investments in these VIEs was zero. As  of December 31, 2010, the Bancorp’s carrying value of these equity  investments was zero. Additionally, as of December 31, 2010 and  2009, the Bancorp had outstanding loans to these VIEs of $12  million and $23 million, respectively, included in commercial loans  in the Consolidated Balance Sheets. The Bancorp’s unfunded loan  commitments to these VIEs were $1 million as of December 31,  2010 and 2009. The loans and unfunded commitments to these  VIEs are included in the Bancorp’s overall analysis of the  allowance for loan and lease losses and reserve for unfunded  commitments, respectively. The Bancorp does not provide any  implicit or explicit liquidity guarantees or principal value guarantees  to these VIEs.  13. SALES OF RECEIVABLES AND SERVICING RIGHTS  Residential Mortgage Loan Sales  The Bancorp sold fixed and adjustable rate residential mortgage  loans during 2010, 2009 and 2008. In those sales, the Bancorp  obtained servicing responsibilities and the investors have no  recourse to the Bancorp’s other assets for failure of debtors to pay  when due. The Bancorp receives annual servicing fees based on a  percentage of the outstanding balance. The Bancorp identifies  classes of servicing assets based on financial asset type and interest  rates. Information related to residential mortgage loan sales and the  Bancorp’s mortgage banking activity, which is included in mortgage  banking net revenue in the Consolidated Statements of Income for  the years ended December 31 is as follows: ($ in millions)  2010  2009  2008  Residential mortgage loan sales  $17,861  20,605 11,529 Origination fees and gains on loan sales  490  485 260 Servicing fees  221  197 164 Servicing Assets The following table presents changes in the servicing assets related to residential mortgage loans for the years ended:  ($ in millions)  2010  2009  Carrying amount as of the beginning of period $979  752  Servicing obligations that result from transfer of residential mortgage loans  297  373  Amortization  (138)  (146)  Carrying amount before valuation allowance  1,138  979  Valuation allowance for servicing assets:  Beginning balance  (280)  (256)  Servicing impairment  (36)  (24)  Ending balance  (316)  (280)  Carrying amount as of the end of the period  $822  699  90 Fifth Third Bancorp