SunTrust Mortgage Inc. is eliminating its construction-to-permanent program.
The Richmond, Va.-based lender issued a bulletin to its wholesale clients on Friday notifying them of the move. The decision was based on "ongoing credit risk associated with construction lending."
Loans closed under the program must be locked by Monday, July 21, and closed and funded by Aug. 29, the notice said.
"SunTrust will NOT close or fund any construction-permanent loans after Aug. 29, 2008," SunTrust said. "Extended locks will not be eligible. In addition, lock-in extensions and re-locks will not be granted."
SunTrust reports 1,366 mortgage correspondent customers and 13,461 mortgage broker customers as of March 31.