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Goodwill and Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill attributed to the business segments The following table presents goodwill attributed to the business segments.
December 31, (in millions)202020192018
Consumer & Community Banking(a)
$31,311 $30,133 $30,084 
Corporate & Investment Bank(a)
7,913 7,901 7,721 
Commercial Banking2,985 2,982 2,860 
Asset & Wealth Management(a)
7,039 6,807 6,806 
Total goodwill$49,248 $47,823 $47,471 
(a)In 2020, goodwill of $959 million was transferred from CCB to CIB and $51 million from AWM to CCB related to business realignments. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 32 for additional information on these realignments.
The following table presents changes in the carrying amount of goodwill.
Year ended December 31, (in millions)202020192018
Balance at beginning of period$47,823 $47,471 $47,507 
Changes during the period from:
Business combinations(a)
1,412 349 — 
Other(b)
13 3 (36)
Balance at December 31,$49,248 $47,823 $47,471 
(a)For 2020, represents estimated goodwill associated with the acquisitions of cxLoyalty in CCB and 55ip in AWM. For 2019, represents goodwill associated with the acquisition of InstaMed. This goodwill was allocated to CIB, CB and CCB.
(b)Primarily relates to foreign currency adjustments.
Mortgage servicing rights activity
The following table summarizes MSR activity for the years ended December 31, 2020, 2019 and 2018.
As of or for the year ended December 31, (in millions, except where otherwise noted)202020192018
Fair value at beginning of period$4,699 $6,130 $6,030 
MSR activity:
Originations of MSRs944 1,384 931 
Purchase of MSRs248 105 315 
Disposition of MSRs(a)
(176)(789)(636)
Net additions/(Dispositions)1,016 700 610 
Changes due to collection/realization of expected cash flows
(899)(951)(740)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(b)
(1,568)(893)300 
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
(54)(333)
(e)
15 
Discount rates
199 153 24 
Prepayment model changes and other(c)
(117)(107)(109)
Total changes in valuation due to other inputs and assumptions28 (287)(70)
Total changes in valuation due to inputs and assumptions(1,540)(1,180)230 
Fair value at December 31,$3,276 $4,699 $6,130 
Change in unrealized gains/(losses) included in income related to MSRs held at December 31,
$(1,540)$(1,180)$230 
Contractual service fees, late fees and other ancillary fees included in income1,325 1,639 1,778 
Third-party mortgage loans serviced at December 31, (in billions)448.0 522.0 521.0 
Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions)(d)
1.8 2.0 3.0 
(a)Includes 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 the remaining balance of those SMBS as trading securities.
(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.
(e)The decrease in projected cash flows was largely related to default servicing assumption updates.
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 years ended December 31, 2020, 2019 and 2018.
Year ended December 31,
(in millions)		202020192018
CCB mortgage fees and related income
Net production revenue$2,629 $1,618 $268 
Net mortgage servicing revenue: 
Operating revenue: 
Loan servicing revenue1,367 1,533 1,835 
Changes in MSR asset fair value due to collection/realization of expected cash flows
(899)(951)(740)
Total operating revenue468 582 1,095 
Risk management: 
Changes in MSR asset fair value due to market interest rates and other(a)
(1,568)(893)300 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
28 (287)(70)
Change in derivative fair value and other
1,522 1,015 (341)
Total risk management(18)(165)(111)
Total net mortgage servicing revenue450 417 984 
Total CCB mortgage fees and related income3,079 2,035 1,252 
All other12 1 2 
Mortgage fees and related income
$3,091 $2,036 $1,254 
(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 the fair value of the Firm's Mortgage Servicing Rights (MSRs)
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at December 31, 2020 and 2019, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
December 31,
(in millions, except rates)		20202019
Weighted-average prepayment speed assumption (constant prepayment rate)
14.90 %11.67 %
Impact on fair value of 10% adverse change
$(206)$(200)
Impact on fair value of 20% adverse change
(392)(384)
Weighted-average option adjusted spread(a)
7.19 %7.93 %
Impact on fair value of 100 basis points adverse change
$(134)$(169)
Impact on fair value of 200 basis points adverse change
(258)(326)
(a)Includes the impact of operational risk and regulatory capital.