XML 108 R42.htm IDEA: XBRL DOCUMENT v3.20.2
Goodwill and Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill by Business Segment
Allocations of Goodwill by business segment during 2019, 2018 and 2017 follow:

Table 59: Goodwill by Business Segment (a)
In millions
Retail Banking

Corporate & Institutional Banking

Asset Management Group

Total

December 31, 2019 (b)
$
5,795

$
3,374

$
64

$
9,233

December 31, 2018 (b)
$
5,795

$
3,359

$
64

$
9,218

December 31, 2017
$
5,795

$
3,314

$
64

$
9,173

(a)
The BlackRock business segment did not have any allocated goodwill during 2019, 2018 and 2017.
(b)
Corporate & Institutional Banking's goodwill balances include the impacts of $15 million at December 31, 2019 and $45 million at December 31, 2018 resulting from business acquisitions.

Commercial Mortgage Servicing Rights
Table 60: Commercial Mortgage Servicing Rights
In millions
2019

 
2018

 
2017

 
January 1
$
726

 
$
668


$
576

 
Additions:
 
 



 
From loans sold with servicing retained
53

 
57


88

 
Purchases
103

 
93


69

 
Changes in fair value due to:
 
 



 
Time and payoffs (a)
(146
)
 
(143
)

(111
)
 
Other (b)
(87
)
 
51


46

 
December 31
$
649

 
$
726


$
668

 
Related unpaid principal balance at December 31
$
216,992

 
$
180,496


$
162,182

 
Servicing advances at December 31
$
157

 
$
220


$
217

 
(a)
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
(b)
Represents MSR value changes resulting primarily from market-driven changes in interest rates.
Mortgage Servicing Rights
Changes in the residential MSRs follow:
Table 61: Residential Mortgage Servicing Rights
In millions
2019

 
2018

 
2017

 
January 1
$
1,257

 
$
1,164

 
$
1,182

 
Additions:
 
 
 
 
 
 
From loans sold with servicing retained
36

 
44

 
55

 
Purchases
114

 
129

 
185

 
Changes in fair value due to:
 
 
 
 
 
 
Time and payoffs (a)
(162
)
 
(170
)
 
(175
)
 
Other (b)
(250
)
 
90

 
(83
)
 
December 31
$
995

 
$
1,257

 
$
1,164

 
Unpaid principal balance of loans serviced for others at December 31
$
120,464

 
$
125,388

 
$
126,769

 
Servicing advances at December 31
$
111

 
$
156

 
$
201

 
(a)
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
(b)
Represents MSR value changes resulting from market-driven changes in interest rates.
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions
The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions:
Table 62: Commercial Mortgage Servicing Rights – Key Valuation Assumptions
Dollars in millions
December 31
2019

 
December 31
2018

 
Fair value
$
649

 
$
726

 
Weighted-average life (years)
4.1

 
4.1

 
Weighted-average constant prepayment rate
4.56
%
 
5.65
%
 
Decline in fair value from 10% adverse change
$
9

 
$
10

 
Decline in fair value from 20% adverse change
$
17

 
$
19

 
Effective discount rate
7.91
%
 
8.39
%
 
Decline in fair value from 10% adverse change
$
17

 
$
19

 
Decline in fair value from 20% adverse change
$
34

 
$
39

 
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions
Table 63: Residential Mortgage Servicing Rights – Key Valuation Assumptions
Dollars in millions
December 31
2019

 
December 31
2018

 
Fair value
$
995

 
$
1,257

 
Weighted-average life (years)
5.2

 
6.9

 
Weighted-average constant prepayment rate
13.51

%
8.69

%
Decline in fair value from 10% adverse change
$
46

 
$
41

 
Decline in fair value from 20% adverse change
$
89

 
$
79

 
Weighted-average option adjusted spread
769

bps 
806

bps 
Decline in fair value from 10% adverse change
$
27

 
$
37

 
Decline in fair value from 20% adverse change
$
52

 
$
73