Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 410

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 410
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 Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.Residential Mortgage ActivitiesThe following tables summarize residential mortgage servicing activities:(Dollars in millions)Dec 31, 2024Dec 31, 2023Dec 31, 2022UPB of residential mortgage loan servicing portfolio$273,412 $269,068 $274,028 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate218,475 213,399 217,046 Mortgage loans sold with recourse146 173 200 Maximum recourse exposure from mortgage loans sold with recourse liability91 109 127 Indemnification, recourse and repurchase reserves44 52 56 As of / For the Year Ended December 31,(Dollars in millions)202420232022UPB of residential mortgage loans sold from LHFS$10,639 $13,669 $26,643 Pre-tax gains recognized on mortgage loans sold and held for sale75 60 69 Servicing fees recognized from mortgage loans serviced for others600 617 630 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others0.28 %0.27 %0.31 %Weighted average interest rate on mortgage loans serviced for others3.65 3.56 3.48 The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:(Dollars in millions)202420232022Residential MSRs, carrying value, January 1$3,088 $3,428 $2,305 Acquired228 123 321 Additions189 249 428 Sales(2)(531)— Change in fair value due to changes in valuation inputs or assumptions(1)210 88 766 Realization of expected net servicing cash flows, passage of time, and other(282)(269)(392)Residential MSRs, carrying value, December 31$3,431 $3,088 $3,428 (1)The year ended December 31, 2023 includes realized gains on the portfolio sale of excess servicing.The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:December 31, 2024December 31