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Goodwill and Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2023
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,
2023		December 31,
2022
Consumer & Community Banking$32,116 $32,121 
Corporate & Investment Bank8,244 8,008 
Commercial Banking2,985 2,985 
Asset & Wealth Management8,492 7,902 
Corporate655 646 
Total goodwill$52,492 $51,662 
The following table presents changes in the carrying amount of goodwill.
Three months ended September 30,Nine months ended September 30,
(in millions)2023202220232022
Balance at beginning of period$52,380 $50,697 $51,662 $50,315 
Changes during the period from:
Business combinations(a)
166 882 

853 1,352 

Other(b)
(54)(118)

(23)(206)

Balance at September 30,$52,492 $51,461 $52,492 $51,461 
(a)For the three months ended September 30, 2023, represents an adjustment to goodwill related to the acquisition of CIFM in AWM. For the nine months ended September 30, 2023, represents estimated goodwill associated with the acquisition of Aumni Inc. in CIB in the second quarter, and the acquisition of the remaining 51% interest in CIFM in AWM in the first quarter. For the three and nine months ended September 30, 2022, represents estimated goodwill associated with the acquisitions of Global Shares PLC in AWM and Figg, Inc. in CCB in the third quarter, and Frosch Travel Group, LLC in CCB and Volkswagen Payments S.A. in CIB in the second quarter.
(b)Predominantly foreign currency adjustments.
Mortgage servicing rights activity
The following table summarizes MSR activity for the three and nine months ended September 30, 2023 and 2022.
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)2023202220232022
Fair value at beginning of period$8,229 $7,439 $7,973 $5,494 
MSR activity:
Originations of MSRs81 140 191 736 
Purchase of MSRs(a)
569 370 1,036 1,245 
Disposition of MSRs(b)
(101)(79)(191)(750)
Net additions/(dispositions)549 431 1,036 1,231 
Changes due to collection/realization of expected cash flows
(265)(234)(760)(702)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(c)
555 465 816 2,012 
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
(26)36 (24)36 
Discount rates
14 — 14 — 
Prepayment model changes and other(d)
53 3 54 69 
Total changes in valuation due to other inputs and assumptions41 39 44 105 
Total changes in valuation due to inputs and assumptions596 504 860 2,117 
Fair value at September 30,$9,109 $8,140 $9,109 $8,140 
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30,$596 $504 $860 $2,117 
Contractual service fees, late fees and other ancillary fees included in income
409 391 1,185 1,156 
Third-party mortgage loans serviced at September 30, (in billions)639 587 639 587 
Servicer advances, net of an allowance for uncollectible amounts, at September 30(e)
557 786 557 786 
(a)Includes purchase price adjustments associated with MSRs purchased in the prior quarter, primarily as a result of loans that prepaid within 90 days of settlement, allowing the Firm to recover the purchase price.
(b)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.
(c)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.
(d)Represents changes in prepayments other than those attributable to changes in market interest rates.
(e)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, 2023 and 2022.
Three months ended September 30,Nine months ended September 30,
(in millions)2023202220232022
CCB mortgage fees and related income
Production revenue$162 $93 $339 $454 
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue409 400 1,211 1,203 
Changes in MSR asset fair value due to collection/realization of expected cash flows(265)(234)(760)(702)
Total operating revenue144 166 451 501 
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
555 465 816 2,012 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
41 39 44 105 
Changes in derivative fair value and other(485)(450)(736)(1,926)
Total risk management111 54 124 191 
Total net mortgage servicing revenue255 220 575 692 
Total CCB mortgage fees and related income417 313 914 1,146 
All other(3)1 (1)6 
Mortgage fees and related income$414 $314 $913 $1,152 
(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, 2023 and December 31, 2022, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Sep 30,
2023		Dec 31,
2022
Weighted-average prepayment speed assumption (constant prepayment rate)
5.80 %6.12 %
Impact on fair value of 10% adverse change
$(198)$(183)
Impact on fair value of 20% adverse change
(387)(356)
Weighted-average option adjusted spread(a)
5.85 %5.77 %
Impact on fair value of a 100 basis point adverse change
$(394)$(341)
Impact on fair value of a 200 basis point adverse change
(758)(655)
(a)Includes the impact of operational risk and regulatory capital.