Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 256

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 2
Chunk 256
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 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 $3,428 (1)The year ended December 31, 2023 includes realized gains on the portfolio sale of excess servicing.The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:December 31, 2024December 31, 2023RangeWeighted AverageRangeWeighted Average(Dollars in millions)MinMaxMinMaxPrepayment speed6.3 %11.2 %7.1 %6.7 %18.2 %7.5 %Effect on fair value of a 10% increase$(89)$(82)Effect on fair value of a 20% increase(172)(160)OAS1.8 %12.5 %4.8 %2.2 %12.0 %4.6 %Effect on fair value of a 10% increase$(70)$(60)Effect on fair value of a 20% increase(138)(118)Composition of loans serviced for others:   Fixed-rate residential mortgage loans99.7 %99.6 %Adjustable-rate residential mortgage loans