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Goodwill, Mortgage Servicing Rights, and Other Intangible Assets (Tables)
 9 Months Ended
Sep. 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)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.
Mortgage servicing rights activity
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.
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, 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).
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, 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.