XML 60 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill by Business Segment
Allocations of Goodwill by business segment during 2017, 2016 and 2015 follow:

Table 60: Goodwill by Business Segment (a)
In millions
Retail
Banking

Corporate &
Institutional
Banking

Asset
Management
Group

Total

 
December 31, 2015
$
5,795

$
3,244

$
64

$
9,103

 
December 31, 2016
$
5,795

$
3,244

$
64

$
9,103

 
December 31, 2017 (b)
$
5,795

$
3,314

$
64

$
9,173

 
(a)
The BlackRock business segment did not have any allocated goodwill during 2017, 2016 and 2015.
(b)
Corporate & Institutional Banking's goodwill balance as of December 31, 2017 includes the impact of $70 million from business acquisitions in 2017.
Commercial Mortgage Servicing Rights
Changes in the commercial MSRs follow:
Table 61: Commercial Mortgage Servicing Rights
In millions
2017

 
2016

 
2015

 
January 1
$
576

 
$
526

 
$
506

 
Additions:
 
 
 
 
 
 
From loans sold with
    servicing retained
88

 
61

 
63

 
Purchases
69

 
36

 
55

 
Changes in fair value due to:
 
 
 
 
 
 
Time and payoffs (a)
(111
)
 
(92
)
 
(89
)
 
Other (b)
46

 
45

 
(9
)
 
December 31
$
668

 
$
576

 
$
526

 
Related unpaid principal
    balance at December 31
$
162,182

 
$
143,139

 
$
145,823

 
Servicing advances at
    December 31
$
217

 
$
265

 
$
251

 
(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 62: Residential Mortgage Servicing Rights
In millions
2017

 
2016

 
2015

 
January 1
$
1,182

 
$
1,063

 
$
845

 
Additions:
 
 
 
 
 
 
From loans sold with
    servicing retained
55

 
62

 
78

 
Purchases
185

 
188

 
316

 
Changes in fair value due to:
 
 
 
 
 
 
Time and payoffs (a)
(175
)
 
(168
)
 
(178
)
 
Other (b)
(83
)
 
37

 
2

 
December 31
$
1,164

 
$
1,182

 
$
1,063

 
Unpaid principal balance of
    loans serviced for others at
    December 31
$
126,769

 
$
125,381

 
$
123,466

 
Servicing advances at
    December 31
$
201

 
$
302

 
$
411

 
(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 and changes in model assumptions.
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 63: Commercial Mortgage Loan Servicing Rights –Key Valuation Assumptions
Dollars in millions
December 31
2017

 
December 31
2016

 
Fair value
$
668

 
$
576

 
Weighted-average life (years)
4.4

 
4.6

 
Weighted-average constant
prepayment rate
8.51
%
 
8.61
%
 
Decline in fair value from
10% adverse change
$
12

 
$
11

 
Decline in fair value from
20% adverse change
$
23

 
$
21

 
Effective discount rate
7.81
%
 
7.52
%
 
Decline in fair value from
10% adverse change
$
18

 
$
16

 
Decline in fair value from
20% adverse change
$
36

 
$
31

 
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions
Table 64: Residential Mortgage Loan Servicing Rights – Key Valuation Assumptions
Dollars in millions
December 31
2017

 
December 31
2016

 
Fair value
$
1,164

 
$
1,182

 
Weighted-average life (years)
6.4

 
6.8

 
Weighted-average constant
    prepayment rate
10.04

%
9.41

%
Decline in fair value from
    10% adverse change
$
44

 
$
45

 
Decline in fair value from
    20% adverse change
$
85

 
$
86

 
Weighted-average option
    adjusted spread
830

bps 
850

bps 
Decline in fair value from
    10% adverse change
$
35

 
$
37

 
Decline in fair value from
    20% adverse change
$
67

 
$
72