v3.25.2
Goodwill, Mortgage Servicing Rights, and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2025
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,
2025		December 31,
2024
Consumer & Community Banking$32,116 $32,116 
Commercial & Investment Bank11,259 11,236 
Asset & Wealth Management8,617 8,521 
Corporate755 692 
Total goodwill$52,747 $52,565 
The following table presents changes in the carrying amount of goodwill.
Three months ended June 30,Six months ended June 30,
(in millions)2025202420252024
Balance at beginning of period$52,621 $52,636 $52,565 $52,634 
Changes during the period from:
Business combinations
— (5)— 29 
Other(a)
126 (11)182 (43)
Balance at June 30,$52,747 $52,620 $52,747 $52,620 
(a)Primarily foreign currency adjustments.
Mortgage servicing rights activity
The following table summarizes MSR activity for the three and six months ended June 30, 2025 and 2024.
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)2025202420252024
Fair value at beginning of period$9,127 $8,605 $9,121 $8,522 
MSR activity:
Originations of MSRs84 95 195 153 
Purchase of MSRs(a)
1 323 280 325 
Disposition of MSRs3 (32)
(e)
7 (27)
(e)
Net additions/(dispositions)88 386 482 451 
Changes due to collection/realization of expected cash flows
(272)(263)(533)(523)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(b)
59 117 (41)385 
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)
— — 1 7 
Discount rates
(1)— (1)— 
Prepayment model changes and other(c)
(5)2 (33)5 
Total changes in valuation due to other inputs and assumptions(6)2 (33)12 
Total changes in valuation due to inputs and assumptions53 119 (74)397 
Fair value at June 30,$8,996 $8,847 $8,996 $8,847 
Changes in unrealized gains/(losses) included in income related to MSRs held at June 30,$53 $119 $(74)$397 
Contractual service fees, late fees and other ancillary fees included in income
412 395 814 794 
Third-party mortgage loans serviced at June 30, (in billions)658 644 658 644 
Servicer advances, net of an allowance for uncollectible amounts, at June 30(d)
440 524 440 524 
(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 six months ended June 30, 2025 and 2024.
Three months ended June 30,Six months ended June 30,
(in millions)2025202420252024
CCB mortgage fees and related income
Production revenue$151 $157 $261 $287 
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue420 412 824 817 
Changes in MSR asset fair value due to collection/realization of expected cash flows(271)(262)(531)(522)
Total operating revenue149 150 293 295 
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
59 117 (41)385 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
(6)2 (33)12 
Changes in derivative fair value and other(6)(80)130 (359)
Total risk management47 39 56 38 
Total net mortgage servicing revenue196 189 349 333 
Total CCB mortgage fees and related income347 346 610 620 
All other16 2 31 3 
Mortgage fees and related income$363 $348 $641 $623 
(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, 2025 and December 31, 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Jun 30,
2025		Dec 31,
2024
Weighted-average prepayment speed assumption (constant prepayment rate)
6.88 %6.19 %
Impact on fair value of 10% adverse change
$(180)$(209)
Impact on fair value of 20% adverse change
(351)(406)
Weighted-average option adjusted spread(a)
6.10 %5.97 %
Impact on fair value of a 100 basis point adverse change
$(383)$(391)
Impact on fair value of a 200 basis point adverse change
(735)(751)
(a)Includes the impact of operational risk and regulatory capital.