Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 411

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 411
---
, 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 loans0.3 0.4 Total  100.0 %  100.0 %Weighted average life  7.6 years  7.5 yearsThe sensitivity calculations above are hypothetical and should not be considered predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. See “Note 18. Fair Value Disclosures” for additional information on the valuation techniques used.

128   Truist Financial Corporation

Commercial Mortgage ActivitiesThe following table summarizes commercial mortgage servicing activities:(Dollars in millions)Dec 31, 2024Dec 31, 2023UPB of CRE mortgages serviced for others$27,845 $31,681 CRE mortgages serviced for others covered by recourse provisions9,985 9,661 Maximum recourse exposure from CRE mortgages sold with recourse liability2,940 2,813 Recorded reserves related to recourse exposure11 16 CRE mortgages originated during the year-to-date period1,467 2,989 Commercial MSRs at fair value265 272 

Truist Financial Corporation   129

NOTE 9. Other Assets and Liabilities

Lessee Operating and Finance LeasesThe Company leases certain assets