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Goodwill, Mortgage Servicing Rights, and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
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)June 30,
2024		December 31,
2023
Consumer & Community Banking$32,116 $32,116 
Commercial & Investment Bank11,270 11,251 
Asset & Wealth Management8,555 8,582 
Corporate679 685 
Total goodwill$52,620 $52,634 
The following table presents changes in the carrying amount of goodwill.
Three months ended June 30,Six months ended June 30,
(in millions)2024202320242023
Balance at beginning of period$52,636 $52,144 $52,634 $51,662 
Changes during the period from:
Business combinations(a)
(5)236 29 687 
Other(b)
(11)— (43)31 
Balance at June 30,$52,620 $52,380 $52,620 $52,380 
(a)For the six months ended June 30, 2024, includes estimated goodwill associated with the acquisition of LayerOne Financial in CIB in the first quarter. For the three and six months ended June 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.
(b)Primarily foreign currency adjustments.
Mortgage servicing rights activity
The following table summarizes MSR activity for the three and six months ended June 30, 2024 and 2023.
As of or for the three months
ended June 30,		As of or for the six months
ended June 30,
(in millions, except where otherwise noted)2024202320242023
Fair value at beginning of period$8,605 $7,755 $8,522 $7,973 
MSR activity:
Originations of MSRs95 78 153 110 
Purchase of MSRs(a)
323 468 325 467 
Disposition of MSRs(b)
(32)(92)(27)(90)
Net additions/(dispositions)386 454 451 487 
Changes due to collection/realization of expected cash flows
(263)(255)(523)(495)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(c)
117 283 385 261 
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
— 2 7 2 
Discount rates
— — — — 
Prepayment model changes and other(d)
2 (10)5 1 
Total changes in valuation due to other inputs and assumptions2 (8)12 3 
Total changes in valuation due to inputs and assumptions119 275 397 264 
Fair value at June 30,
$8,847 $8,229 $8,847 $8,229 
Changes in unrealized gains/(losses) included in income related to MSRs held at June 30,
$119 $275 $397 $264 
Contractual service fees, late fees and other ancillary fees included in income
395 388 794 776 
Third-party mortgage loans serviced at June 30, (in billions)
644 605 644 605 
Servicer advances, net of an allowance for uncollectible amounts, at June 30(e)
524 595 524 595 
(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 six months ended June 30, 2024 and 2023.
Three months ended June 30,Six months ended June 30,
(in millions)2024202320242023
CCB mortgage fees and related income
Production revenue$157 $102 $287 $177 
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue412 402 817 802 
Changes in MSR asset fair value due to collection/realization of expected cash flows(262)(255)(522)(495)
Total operating revenue150 147 295 307 
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
117 283 385 261 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
2 (8)12 3 
Changes in derivative fair value and other(80)(250)(359)(251)
Total risk management39 25 38 13 
Total net mortgage servicing revenue189 172 333 320 
Total CCB mortgage fees and related income346 274 620 497 
All other2 4 3 2 
Mortgage fees and related income$348 $278 $623 $499 
(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 June 30, 2024 and December 31, 2023, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)June 30,
2024		Dec 31,
2023
Weighted-average prepayment speed assumption (constant prepayment rate)
6.18 %6.29 %
Impact on fair value of 10% adverse change
$(204)$(206)
Impact on fair value of 20% adverse change
(397)(401)
Weighted-average option adjusted spread(a)
5.94 %6.10 %
Impact on fair value of a 100 basis point adverse change
$(381)$(369)
Impact on fair value of a 200 basis point adverse change
(732)(709)
(a)Includes the impact of operational risk and regulatory capital.