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Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill attributed to the business segments
The following table presents goodwill attributed to the business segments.
(in millions)
March 31,
2016
December 31,
2015
Consumer & Community Banking
$
30,814

$
30,769

Corporate & Investment Bank
6,775

6,772

Commercial Banking
2,861

2,861

Asset Management
6,860

6,923

Total goodwill
$
47,310

$
47,325



The following table presents changes in the carrying amount of goodwill.
 
Three months ended March 31,
(in millions)
2016
2015
Balance at beginning of period
$
47,325

$
47,647

Changes during the period from:
 
 
Business combinations
—

8

Dispositions(a)
(71
)
(101
)
Other(b)
56

(101
)
Balance at March 31,
$
47,310

$
47,453

(a)
During the three months ended March 31, 2016, represents Asset Management goodwill, which was disposed of as part of Asset Management sales completed in March 2016. During the three months ended March 31, 2015, represents Private Equity goodwill, which was disposed of as part of a Private Equity sale completed in January 2015.
(b)
Includes foreign currency translation adjustments and other tax-related adjustments.
Mortgage servicing rights activity
The following table summarizes MSR activity for the three months ended March 31, 2016 and 2015.
 
As of or for the three months
ended March 31,
(in millions, except where otherwise noted)
2016
 
2015
Fair value at beginning of period
$
6,608

 
$
7,436

MSR activity:
 
 
 
Originations of MSRs
107

 
155

Purchase of MSRs
—

 
1

Disposition of MSRs(a)
(64
)
 
(157
)
Net additions
43

 
(1
)
 
 
 
 
Changes due to collection/realization of expected cash flows
(241
)
 
(215
)
 
 
 
 
Changes in valuation due to inputs and assumptions:
 
 
 
Changes due to market interest rates and other(b)
(762
)
 
(477
)
Changes in valuation due to other inputs and assumptions:
 
 
 
Projected cash flows (e.g., cost to service)
7

 
(10
)
Discount rates
7

 
(10
)
Prepayment model changes and other(c)
(4
)
 
(82
)
Total changes in valuation due to other inputs and assumptions
10

 
(102
)
Total changes in valuation due to inputs and assumptions
(752
)
 
(579
)
Fair value at March 31,
$
5,658

 
$
6,641

 
 
 
 
Change in unrealized gains/(losses) included in income related to MSRs held at March 31,
$
(752
)
 
$
(579
)
Contractual service fees, late fees and other ancillary fees included in income
$
561

 
$
667

Third-party mortgage loans serviced at March 31, (in billions)
$
658

 
$
728

Net servicer advances at March 31, (in billions)(d)
$
6.1

 
$
7.9

(a)
For the three months ended March 31, 2016, predominantly represents excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired and has retained the remaining balance of those SMBS as trading securities. Also includes sales of MSRs for the three months ended March 31, 2016 and 2015.
(b)
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(c)
Represents changes in prepayments other than those attributable to changes in market interest rates.
(d)
Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.
CCB mortgage fees and related income
The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three months ended March 31, 2016 and 2015.
 
 
Three months ended March 31,
(in millions)
 
2016
 
2015
CCB mortgage fees and related income
 
 
 
 
 
 
 
 
 
Net production revenue
 
$
162

 
$
237

 
 
 
 
 
Net mortgage servicing revenue:
 
 
 
 
Operating revenue:
 
 
 
 
Loan servicing revenue
 
616

 
749

Changes in MSR asset fair value due to collection/realization of expected cash flows
 
(240
)
 
(214
)
Total operating revenue
 
376

 
535

Risk management:
 
 
 
 
Changes in MSR asset fair value due to market interest rates and other(a)
 
(762
)
 
(476
)
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
 
10

 
(102
)
Change in derivative fair value and other
 
881

 
510

Total risk management
 
129

 
(68
)
Total net mortgage servicing revenue
 
505

 
467

 
 
 
 
 
Total CCB mortgage fees and related income
 
667

 
704

 
 
 
 
 
All other
 
—

 
1

Mortgage fees and related income
 
$
667

 
$
705

(a)
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(b)
Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
Key economic assumptions used to determine FV of MSRs
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at March 31, 2016, and December 31, 2015, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)
Mar 31,
2016
 
Dec 31,
2015
Weighted-average prepayment speed assumption (“CPR”)
12.07
%
 
9.81
%
Impact on fair value of 10% adverse change
$
(275
)
 
$
(275
)
Impact on fair value of 20% adverse change
(534
)
 
(529
)
Weighted-average option adjusted spread
9.85
%
 
9.54
%
Impact on fair value of 100 basis points adverse change
$
(213
)
 
$
(258
)
Impact on fair value of 200 basis points adverse change
(410
)
 
(498
)
CPR: Constant prepayment rate