SUNTRUST ANYONE?

Suntrust is a very good company, very solid. They tend to be a little higher in rate, at least have been in this market for a while. As a portfolio lender they're taking a prudently conservative approach, particularly in regards to Agency Jumbo and Jumbo products.

What are your concerns?

Agree w/Bay Area, good bank. Is your broker a Zillow member?

SunTrust is good and is competitive in my region.  What is your Interest Rate.  Rhe rate does depend upon LTV, credit score, DTI, property (SFD as compared to High Rise Condo) and the time of the quote.

Good bank, pleasure to deal with, used to always have great rates, now, as was pointed out above, a bit conservative, and a bit high in price lately, but when I say high, I mean maybe .125-.25, not worth the worry if they give you peace of mind, imo. Did you submit a quote request here, on Zillow? Perhaps the day you were quoted, they were spot on with their quotes!

I've noticed that Suntrust is one of those part-time players in the market.  When they want certain borrowers, they make their products super competitive for those borrowers.  A year and half ago they wanted Fannie fixed borrowers, so they priced better than Provident.  At the beginning of this year they wanted FHA fixed, so they were killing everyone. 

I remember two months back looking at their FHA arm products (which seem kind of weird to be honest with you) and they were a full 1% lower than their closest competitor, and then they fell off.  I assume they get their quota and then leave that particular market.  If you keep an eye on them you can really hit a home-run for someone.  Their underwriting is (or was) pretty easy to deal with; it's been a while for me though. 

I hear Suntrust is having major their issues with the performance of their portfolio right now,

They shut down their equity wholesale few weeks ago. I would not be surprised if non-conforming and conforming wholesale followed suit.

485k sounds like can be conforming what state and county do you live in??

Bank of Texas what are you talking about? Most major wholesale lenders have shut down their equity division. I don't think Suntrust is going anywhere.

Michael,

Yeah, I read what BOT said and don't agree with it at all.  But, what do you expect when . . .

Did you see their earnings anouncement??

No, you think they are going to fall? Have you seen the earnings of many banks?  They aren't going to fall either.  How many loans does SunTrust portfolio as compared Fannie, Freddie, FHA, VA money?

GSD,
SUN does have major problems, but so all lenders do.. BOT's mother ship is actually doing a bit worse in stock performance over the past 3 months and so, it may be best that we all not fire arrows over the bow.  STI has done many FL 80/20 INV SISA's... My friend just closed on the short sale... 2 years ago... $400,000....  80/20  SISA I/O..STI held the 1st... quit paying in 10/07... sale approved and closed yesterday.. price:  $239,000..  Gross.. costs, etc. $20,000.. STI dropped at lest $100,000 from their $320,000 loan.. Big loss in leverage land.  E, your bank and mother looked like it fell off a cliff 5 weeks ago, so easy on the stone throwing in the glass house.  Not blastin' you, just letting you know that this issue is a capital markets issue and your company is part of it.  From what I have seen you attempt to quote and perhaps close is not very mainstream to me.  If you are not mainstream these days, you could end up upstream... without a rowing thingy..  if you get my drift.  As far as comparing all banks to FNM and FRE... doesn't matter... the BANKS could fail and FNM/FRE could lose the equity, but the entity will stay open.  I have a friend in the hedgey world... his guess 300-400 banks go.. before all is said and done... we have taken 8 or so... up to date.. get your seat and popcorn as it would seem we have a year or so to go about this.  Keep rockin'.

Martin,

I don't second guess you as you always know what you are talking about.  I just don't think SunTrust is going anywhere.

As I had mentioned earlier, I am aware of the economic news but try to keep it in perspective.  If I start buying into all the bad press, which is the only press that sells, I will suffer from mental masturbation and hide behind it all like many do.  The end result is I won't be able to help a single soul.  So, I put on my rosey glasses, smile and do what I do best: help people get what they want so I can get what I want to: Zig Ziglar!

GSD,

Not saying STI will leave the building at all.  They do have the walawalaleverageflu like many others. Only time will tell and the more inventory we can clear to paying customers... The key word is paying.. we will then find the footing.  My commentary is pointed more at BANKS in general.  We should all remember that BANKS are like elephants and they follow the herd... So, they should all be careful about thinking/hoping/wishing that another competitor goes under... Reason being.. If BANK "A" goes under and did the same thing as BANK"B"....  it is just a matter of time in my opinion if all else stays constant.  That is why I pointed out to Big TEX... look at his chart prior to shooting.  The market is not happy with them.. actually more unhappy with his company's stock...  Best example were the MI companies.. (WIFE).  When RDN & MTG were rolling around on the floor last year at this time getting punished..the others said WHEW!.. It was a sign of what was to come for all... All off 90+% in stock price.  That is why I say, be careful what you wish for... You are good my friend and we'll keep bringing it every day... Brick at a time.  Keep rockin'.

Martin,

Agree.  I know you were talking about the general state of affairs of the banking industry.  Put it this way, I hope SunTrust doesn't go: I have four loans in the pipe with them . . .

I am only guessing that SUN will be in the game unless its competitors of that size and structure pull out...  A problem with any and all banks who loaned on RE is if any large builders go out of business..  again, that type of stress and strain has not been carried yet.  We'll keep our fingers crossed, but it is always very simple when looked at from above.  If all debtors had paid and pay their debts... we would not have an issue.  We simply need to loan money to those who will repay.  This is the cause of all the turmoil and fights... Seller-assisted DPA loans don't pay very well.... NEXT... SISA does not pay very well.... NEXT... It is that easy and I think "standards" and requirements will RISE until we can count on the bottom tier to hold their own.  I personally have yet to see it.  Have you?  I think that is where the problem lies and the solution is as well.  Keep rockin'.

They are a survivor in my opinion.  Zero Option ARM exposure and lesser Home Equity exposure than many other players.  They did hype the "Agency Shortcut" for awhile and probably have some problem SISA loans, that would be my only concern for their solvency.

They aren't a "known name" to all consumers because the brick and morter locations are primarily in the Southeast, but they are a national player in the mortgage world.

SDL,

The biggest issue was they slept with with SISA NO DOWN INV loans (ALT A) in FL for the past few years  (HUGE PART OF THEIR RES LENDING)  HUGE HELOC EXPOSURE in FL....  needless to say... that is what the drag is..  Time will tell, but they should be a survivor.  If they do not... many others would collapse in front and it would not be a good sing for any.

I have to agree with both greg and martin

While I agree they are struggling, my gut says Suntrust always was cautious about its portfolio -at least a lot more so than many others - so I think they will be alright.

This is the real issue at hand- there is no escaping. Everyone is exposed to a large degree.

SRV,

A point well taken indeed.  Many people are thinking it "won't get worse" and the stocks have bottomed.  I also think there is a 2nd 1/2 to the storm and just not sure how all and everyone will hold up. It is not the re-sets that bother me, but that they just don't and can't pay.  Time will tell. As you point out, numbers don't lie, people might, but numbers won't.

Martin- this is a repost from antoher thread where i posted that picture, but

Behind the scene is some other major problems going on. All that reseting paper is wrapped up in CDOs and MBS, and against their "value" billions of $$$ in credit swaps and derivitives are leveraged against them. The Fed is on full tilt trying to contain subprime damage and they are already taking below investment grade (read, junk bond grade) non-salable MBS and repackaging them as US treasury bonds, not to mention their heavy involvment in both the CW & BOFA merger as well as the Bear Stearns debacle. We are stretched to the limit to do damage control and the liquidity is completely hamstringing potential purchasers. If interest rates rise to even 7.0% range we are looking at a tinderbox type situation.

I agree with that (and NO, neither you or I are dropping kerosine on a frest fire), but everyone should be prepared to live with less and/or more restrictive leverage.  If more people quit paying... they wiill fail and that is a fact, but more than banks, it is the entire cap markets at stake.  If that has issues, credit will be very tight and more expensive to get it (like OIL)..  A great piece of advice is to be as moderate as you can and live within today's means. The less leverage we rely on, the less disruption to our lives personally, this will be.  Like oil... we'll drive less and be more cognizant of our usage and prioritize things a little better.

Martin and Sunrise.

This is why mortgage wont rise to 7% . The guy will do anything within its power to prevent it.

Its too steep to bare with the overglut of inventory.

I dont agree with everyone pulling their belt back. Its simply a mindset that will cause too sharp a calamity to retail spending as a whole. Consumers need confidence to be able to spend a reasonable amount which keeps the economy moving.

I think a sharp decrease in CREDIT is the major answer. Make it far more difficult to obtain large balance credit cards, HELOCS and whatnot.

Tom,

Based on historical data, rates now should now be around 5.75% to 6%.

You have couple of factors now, fewer wholesalers, larger losses, shifting margins.

Walla you have a higher rate recipe.

Good Article

T,

It may be too steep from yours and my eyes, but it is not up to us.  Losses will be recouped and with that may come increases for credit.  Bond insurance is much more expensive.. making muncipailities pay more in yield for bonds... same applies here.  We said the same about gas, steel, cooper, etc...  But when defaults arise... costs/yields go up to account for the "risk".  CC's have had double-digit rates (18% is best example) because of the defaults associated with unsecured debt and collection costs/efforts.... mortgage losses/collections mirror that of unsecured debt... I would place my chips on rising rates....costs.. why would you lower rates to the same account class that doesn't pay?  I know the argument is that they will pay better if we lower it... not true in my opinion...  We are in a funk in FL anyway.. jam it to 9%.. flush the place and it will create a refi opp for the deserved in a year or so... but reducing rates for defaulting loans is a bad lesson.  We will lower the yield on worse-performing loans.. That makes no sense to me.  Each entitled to their own opinion, but we have done nothing with 3.25% fed lowering, so I am sticking with my bet.  Keep rockin'.

In Aug 2006, I couldnt get 6.5% at par wholesale. At one point it was 6.75% at par .

This was still under extrodinarily cheap credit and high home values.

We are dealing with 'summer rates' IMHO.

While the 'hits' to fannie and freddie will make 5% interest rates improbable, even in Mid January, I dont see a 7% fannie.

I think both of you make fantastic arguments, but I just dont think so . If I am in 'denial' then ..............so be it !

THANKS 4 ALL YOUR REPLY. My husband and I are buying r 1st home and we have excellent credit scores, stable and modestly good income. The house we liked was at ELK GROVE, CA. What I am worried about is Suntrust sells the TITLE of the house to somebody else after few years amd I have been reading that sometimes this cause hassles to the buyers. (SORRY this is our 1st time to buy so pls limit your REAL ESTATE JARGON to simpler terms.) thanks, appreciate ur input.

Rhea

Lenders quite often sell your loan. You can choose a bank that 'portfolios' or keeps your loan but you shouldnt worry about if they do.

By law, whoever buys it cannot change any of their terms, and its in their direct interest to make it as easy as possible for you to make your payment to them.

You can set up auto debit with them too, or a coupon book to send in your payment .

Always remember that once you buy the house .....its YOURS. Not the banks. The bank simply has a 'lien' on the house and the right to foreclose on it if you dont pay.

Well that is in the conforming limit.

What is the planned down payment??

Again I do not lend in California right now but 6.8 seem a little steep for a non Jumbo what do you guys think???