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Goodwill, Mortgage Servicing Rights, and Other Intangible Assets
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Mortgage Servicing Rights, and Other Intangible Assets Goodwill, mortgage servicing rights, and other intangible assets
Refer to Note 15 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the accounting policies related to goodwill, mortgage servicing rights, and other intangible assets.
Goodwill
Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as additional information pertaining to facts and circumstances that existed as of the acquisition date is obtained about the fair value of assets acquired and liabilities assumed.
The following table presents goodwill attributed to the reportable business segments and Corporate.
(in millions)September 30,
2024		December 31,
2023
Consumer & Community Banking$32,116 $32,116 
Commercial & Investment Bank11,259 11,251 
Asset & Wealth Management8,596 8,582 
Corporate740 685 
Total goodwill$52,711 $52,634 
The following table presents changes in the carrying amount of goodwill.
Three months ended September 30,Nine months ended September 30,
(in millions)2024202320242023
Balance at beginning of period$52,620 $52,380 $52,634 $51,662 
Changes during the period from:
Business combinations(a)
— 166 29 853 
Other(b)
91 (54)48 (23)
Balance at September 30,$52,711 $52,492 $52,711 $52,492 
(a)For the nine months ended September 30, 2024, includes estimated goodwill associated with the acquisition of LayerOne Financial in CIB in the first quarter. 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 the second quarter, predominantly in CIB, and the acquisition of the remaining 51% interest in CIFM in AWM in the first quarter.
(b)Primarily foreign currency adjustments.
Goodwill impairment testing
Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Refer to Note 15 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the Firm’s goodwill impairment testing.
Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.
As of September 30, 2024, the Firm reviewed current economic conditions, estimated market cost of equity, as well as actual business results and projections of business performance. Based on such reviews, the Firm has concluded that goodwill was not impaired as of September 30, 2024, or December 31, 2023, nor was goodwill written off due to impairment during the nine months ended September 30, 2024 or 2023.
Mortgage servicing rights
MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s 2023 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs.
The following table summarizes MSR activity for the three and nine months ended September 30, 2024 and 2023.
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)2024202320242023
Fair value at beginning of period$8,847 $8,229 $8,522 $7,973 
MSR activity:
Originations of MSRs75 81 228 191 
Purchase of MSRs(a)
282 569 607 1,036 
Disposition of MSRs2 (101)
(e)
(25)
(e)
(191)
(e)
Net additions/(dispositions)359 549 810 1,036 
Changes due to collection/realization of expected cash flows
(272)(265)(795)(760)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(b)
(251)555 134 816 
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
95 (26)102 (24)
Discount rates
14 14 14 14 
Prepayment model changes and other(c)
(39)53 (34)54 
Total changes in valuation due to other inputs and assumptions70 41 82 44 
Total changes in valuation due to inputs and assumptions(181)596 216 860 
Fair value at September 30,$8,753 $9,109 $8,753 $9,109 
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30,$(181)$596 $216 $860 
Contractual service fees, late fees and other ancillary fees included in income
396 409 1,190 1,185 
Third-party mortgage loans serviced at September 30, (in billions)658 639 658 639 
Servicer advances, net of an allowance for uncollectible amounts, at September 30(d)
501 557 501 557 
(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)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)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.
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, 2024 and 2023.
Three months ended September 30,Nine months ended September 30,
(in millions)2024202320242023
CCB mortgage fees and related income
Production revenue$154 $162 $441 $339 
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue409 409 1,226 1,211 
Changes in MSR asset fair value due to collection/realization of expected cash flows(273)(265)(795)(760)
Total operating revenue136 144 431 451 
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
(251)555 134 816 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
70 41 82 44 
Changes in derivative fair value and other281 (485)(78)(736)
Total risk management100 111 138 124 
Total net mortgage servicing revenue236 255 569 575 
Total CCB mortgage fees and related income390 417 1,010 914 
All other12 (3)15 (1)
Mortgage fees and related income$402 $414 $1,025 $913 
(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).
Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at September 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)Sep 30,
2024		Dec 31,
2023
Weighted-average prepayment speed assumption (constant prepayment rate)
6.62 %6.29 %
Impact on fair value of 10% adverse change
$(216)$(206)
Impact on fair value of 20% adverse change
(420)(401)
Weighted-average option adjusted spread(a)
6.20 %6.10 %
Impact on fair value of a 100 basis point adverse change
$(376)$(369)
Impact on fair value of a 200 basis point adverse change
(721)(709)
(a)Includes the impact of operational risk and regulatory capital.


















Other intangible assets
The Firm’s finite-lived and indefinite-lived other intangible assets are initially recorded at their fair value primarily upon completion of a business combination. Finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits. The Firm’s intangible assets with indefinite lives, such as asset management contracts, are not subject to amortization and are assessed periodically for impairment.
As of September 30, 2024 and December 31, 2023, other intangible assets consisted of finite-lived intangible assets of $1.8 billion and $2.0 billion, respectively, as well as indefinite-lived intangible assets, which are not subject to amortization, of $1.2 billion at both periods.