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Goodwill and Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill attributed to the business segments and corporate
The following table presents goodwill attributed to the reportable business segments and Corporate.
(in millions)September 30,
2021		December 31,
2020
Consumer & Community Banking$31,472 $31,311 
Corporate & Investment Bank7,906 7,913 
Commercial Banking2,986 2,985 
Asset & Wealth Management7,222 7,039 
Corporate727 — 
Total goodwill$50,313 $49,248 
The following table presents changes in the carrying amount of goodwill.
Three months ended September 30,Nine months ended September 30,
(in millions)2021202020212020
Balance at beginning
of period
$49,256 $47,811 $49,248 $47,823 
Changes during the period from:
Business combinations(a)
1,065 — 1,065 — 
Other(b)
(8)8 — (4)
Balance at September 30,$50,313 $47,819 $50,313 $47,819 
(a)For the three and nine months ended September 30, 2021, represents estimated goodwill associated with the acquisitions of Nutmeg in Corporate, OpenInvest and Campbell Global in AWM and Frank in CCB.
(b)Primarily foreign currency adjustments and adjustments to goodwill related to prior period acquisitions.
Mortgage servicing rights activity
The following table summarizes MSR activity for the three and nine months ended September 30, 2021 and 2020.
As of or for the three months
ended September 30,		As of or for the nine months
ended September 30,
(in millions, except where otherwise noted)2021202020212020
Fair value at beginning of period$4,549 $3,080 $3,276 $4,699 
MSR activity:
Originations of MSRs429 204 1,252 639 
Purchase of MSRs584 17 1,158 24 
Disposition of MSRs(a)
1 (104)(23)(177)
Net additions/(dispositions)1,014 117 2,387 486 
Changes due to collection/realization of expected cash flows
(201)(215)(570)(710)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(b)
133 (59)469 (1,573)
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
119 (82)96 (80)
Discount rates
— 199 — 199 
Prepayment model changes and other(c)
(263)(24)(307)(5)
Total changes in valuation due to other inputs and assumptions(144)93 (211)114 
Total changes in valuation due to inputs and assumptions(11)34 258 (1,459)
Fair value at September 30,$5,351 $3,016 $5,351 $3,016 
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30,$(11)$34 $258 $(1,459)
Contractual service fees, late fees and other ancillary fees included in income
334 333 932 1,026 
Third-party mortgage loans serviced at September 30, (in billions)510 456 510 456 
Servicer advances, net of an allowance for uncollectible amounts, at September 30, (in billions)(d)
1.7 1.7 1.7 1.7 
(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.
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 and nine months ended September 30, 2021 and 2020.
Three months ended September 30,Nine months ended September 30,
(in millions)2021202020212020
CCB mortgage fees and related income
Production revenue$614 $765 $1,888 $1,826 
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue328 381 892 1,063 
Changes in MSR asset fair value due to collection/realization of expected cash flows(201)(215)(570)(710)
Total operating revenue127 166 322 353 
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
133 (59)469 (1,573)
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
(144)93 (211)114 
Changes in derivative fair value and other(134)111 (621)1,593 
Total risk management(145)145 (363)134 
Total net mortgage servicing revenue(18)311 (41)487 
Total CCB mortgage fees and related income596 1,076 1,847 2,313 
All other4 11 8 11 
Mortgage fees and related income$600 $1,087 $1,855 $2,324 
(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 September 30, 2021, and December 31, 2020, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Sep 30,
2021		Dec 31,
2020
Weighted-average prepayment speed assumption (constant prepayment rate)
10.12 %14.90 %
Impact on fair value of 10% adverse change
$(220)$(206)
Impact on fair value of 20% adverse change
(423)(392)
Weighted-average option adjusted spread(a)
6.56 %7.19 %
Impact on fair value of a 100 basis point adverse change
$(226)$(134)
Impact on fair value of a 200 basis point adverse change
(433)(258)
(a)Includes the impact of operational risk and regulatory capital.