Update on SunTrust’s Compliance
August 22, 2018
Joseph A. Smith, Jr. Monitor of the National Mortgage Settlement, filed his report on SunTrust’s metrics testing results from the first quarter of 2018.
The following report is an overview of SunTrust’s progress under the National Mortgage Settlement (NMS or Settlement).
This report includes a review of SunTrust’s compliance with the Settlement’s servicing standards for the first quarter of 2018.
I have reviewed SunTrust’s internal review group’s (IRG) compliance metric testing results and concluded that SunTrust did not fail any of the
compliance metrics I tested in the first quarter of 2018. As a result, I have further concluded that SunTrust has completed the performance of its obligations under the Settlement.
This report is my final report as Monitor under the NMS. It has been an honor and pleasure to work with the Monitoring Committee composed of dedicated public servants from around the country and with hard working and competent professionals. I believe that our work together and with the servicer parties to the NMS accomplished an important public good and hope that reports like this one have enhanced public trust and confidence in government and the financial system.
Joseph A. Smith, Jr.
Servicing Standards Compliance
I evaluated SunTrust’s compliance with the Settlement’s servicing standards using the 34 metrics, or tests, enumerated in the Settlement. These metrics determine whether SunTrust adhered to the 304 servicing standards, or rules, contained in the NMS.
The work to test SunTrust in the first quarter of 2018 involved 32 professionals, including my primary professional firm, secondary professional firms and other professionals who dedicated approximately 7,315 hours.
This report covers the first quarter of 2018, and I tested SunTrust on 34 metrics in this quarter.
The NMS defines a failed metric as a potential violation and gives the servicer a chance to fix the root causes of its failure. For more information on what happens when a servicer fails a metric, see the graphic in the Appendix. I also included information on metric fails and corrective action plans (CAPs) in my previous reports.
Monitor's Role: Testing a Metric
Fails: What's Next?
SunTrust has completed its obligations to the National Mortgage Settlement. Therefore, this is my final report for the servicer. SunTrust will continue to remain accountable to servicing-related rules issued and enforced by the CFPB.