Mortgage Daily Logo

SunTrust Staying in FHA Wholesale

FHA News

 

SunTrust Staying in FHA WholesaleNewsletter from AE says firm suspending broker FHA originations

February 2, 2009

By MortgageDaily.com staff

SunTrust Mortgage is not suspending its wholesale FHA programs — though a newsletter from one of its account executives suggests otherwise. The company is, however, adjusting it pricing and evaluating the mortgage brokers it does business with.“SunTrust Wholesale is pulling out of the market for FHA loan originations for the next 20-60 days,” the recent newsletter from an Atlanta-area account executive said. “Wholesale FHA loans with SunTrust are their highest delinquency factor in the company.”

The newsletter was obtained and published by The Mortgage Lender Implode-O-Meter.

But a spokesman has confirmed that the Atlanta-based company has no plans to suspend FHA originations from mortgage brokers.

“We have not ‘pulled out’ or ‘suspended’ lending in this channel,” Hugh Suhr said in a statement to MortgageDaily.com“We continue to originate via wholesale FHA program.”

He called the terminology used by the account executive “unfortunate” but acknowledged that pricing has been fined-tuned.

The account executive went on in the newsletter to say that SunTrust “will still offer FHA wholesale but are pricing themselves out of the market.”

He explained that the company has had a “phenomenal couple of months” and needs to evaluate the cost of hedging locks and brokers’ pull-through ratios. It is also analyzing delinquency by broker.

“The brokers that have good pull through will have no issues, the ones that do not will have an issue,” the newsletter stated. “SunTrust has let go a huge percentage of their brokers.”

The SunTrust spokesman confirmed that the company is “always evaluating the companies we do business with and are focused on originating quality mortgages.”

Last week, Wells Fargo & Co. and Taylor, Bean & Whitaker Mortgage Corp. disclosed increased minimum credit scores for third-party government originations. Taylor Bean Chairman Lee B. Farkas told MortgageDaily.com, “The tightening is due to increasing delinquencies in our GNMA portfolio.”

Related Posts

Best Mortgage Lenders By Category

Best Mortgage Lenders By Category

A report based on a recent survey of consumers who were shopping for a residential loan has identified the best home lenders in a variety of categories -- including government programs, jumbo loans and online services. The 10-question survey of prospective mortgage...

Best Mortgage Lenders By Category

FHA Endorsements Edge Higher, Book of Biz Grows

Monthly residential government-insured mortgage production was nudged up, though commercial real estate endorsements plunged. The book of business continued to grow. At the end of August, the Federal Housing Administration had insurance in force on 8,622,052...

Best Mortgage Lenders By Category

FHA Endorsements Inch Up, Might Rise More

Monthly Federal Housing Administration business inched higher and might accelerate further. Delinquency turned sharply higher, and reverse mortgage production was the slowest it's been in four years. But commercial mortgage endorsements doubled. As the first half of...

Best Mortgage Lenders By Category

SF Endorsements Up, Delinquency Down at FHA

Monthly new business was moderately higher in the Federal Housing Administration's residential business, while loan performance improved. But commercial mortgage endorsements plunged. Data reported by the Department of Housing and Urban Development indicate FHA...

Best Mortgage Lenders By Category

FHA False Claims Actions Among Industry Concerns

Among the concerns shared by attendees at a recent secondary marketing conference is the legal uncertainty accompanying government-insured originations. A majority want a company-wide production management dashboard. The Mortgage Bankers Association hosted its annual...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI