Update on SunTrust’s Consumer Relief and Compliance

May 19, 2016

Joseph A. Smith, Jr. Monitor of the National Mortgage Settlement, filed his reports on SunTrust’s consumer relief through the first half of 2015 and metrics testing results from the second half of 2015.

Executive Summary

The following report is an overview of SunTrust’s progress under the National Mortgage Settlement (NMS or Settlement) that includes:

  • A summary of SunTrust’s progress toward satisfying its consumer relief obligation under the NMS through the first half of 2015.
  • A review of SunTrust’s compliance with the servicing standards, or rules, outlined in the Settlement for the second half of 2015.








As a result of my reviews, I have credited SunTrust with $370,474,005 in total consumer relief credit. This marks relief to 16,921 borrowers through June 30, 2015. Under the Settlement, by September 30, 2017, SunTrust must earn:

  • $475 million in consumer relief credit by providing mortgage relief to distressed borrowers and establishing a mortgage origination program
  • $25 million in consumer relief credit by refinancing the mortgages of current borrowers who would not otherwise qualify for a refinance

Without taking into account any minimums or caps applicable to creditable activity or the allocation of excess relief under Servicer’s Refinance Program, SunTrust has now met its obligation for the Refinancing Program and approximately 69 percent of its obligation relating to consumer relief activity other than the Refinancing Program.

I have also concluded that SunTrust did not fail any of the compliance metrics I tested for the second half of 2015.To evaluate SunTrust, I worked with a team of professionals. SunTrust

To evaluate SunTrust, I worked with a team of professionals. SunTrust followed a work plan in which its internal review group (IRG) determined whether the servicer complied with the Settlement’s terms. My professionals and I then reviewed the work of servicer’s IRG.

I determined that the IRG’s work was satisfactory and reported my findings to the Court and the public. For more information about the oversight and review process, please see my previous reports.







Joseph A. Smith, Jr.


Consumer Relief Assertion

SunTrust is required to provide $500 million in consumer relief by September 30, 2017. Under the Settlement, mortgage loan relief to distressed borrowers must make up $475 million of the consumer relief, and $25 million must be part of a refinancing program to current borrowers who would not otherwise qualify for a refinance under SunTrust’s generally available refinancing programs. For more details, view the Settlement agreement here.

As a result of the testing described below, SunTrust’s IRG has validated credit in the amount of $370,474,005 as a result of relief on 16,921 loans. Approximately 75 percent of the claimed credit was a result of loans in SunTrust’s mortgage loan portfolio that are held for investment. Eighteen percent of SunTrust’s claimed credit was through First Lien Mortgage Modifications, 39 percent was through Second Lien Portfolio Modification, 12 percent was through refinancing relief, 22 percent was through the New Lending program and nine percent was through short sales, deed-in-lieu and other types of consumer relief.











My primary professional firm (PPF), BDO Consulting, a division of BDO USA, LLP, reviewed SunTrust’s IRG’s assertion and tested each loan in the IRG’s sample from each testing population. The difference between the amounts of relief claimed by SunTrust and the amounts calculated by BDO were within the two percent error tolerance contemplated by the Work Plan. Therefore, BDO and I determined that SunTrust’s IRG correctly validated SunTrust’s consumer relief credit amounts.

This table sets out a breakdown, by type of relief, of the sample testing conducted by BDO.

Testing PopulationLoans Reviewed by PPFServicer's Reported Credit AmoutActual Credit Amount PPF CalculatedAmount Overstated/(Understated)Percentage Overstated/(Understated)
First Lien Mortgage Modifications186$28,635,535$28,454,908$180,6270.6%
Second Lien Portfolio Modifications317$6,139,254$6,118,178$21,0760.3%
Refinancing Program273$7,015,172$7,005,436$9,7360.1%
Other Credits258$6,785,068$6,757,881$27,1870.4%
New Lending Program313$4,276,875$4,276,875--




Consumer Relief Testing Results

BDO documented its findings in its work papers and reported them to me. After BDO and I conducted an in-depth review of both the IRG’s and BDO’s work papers, I found that SunTrust is entitled to the credit claimed. As a result, I have credited SunTrust with an additional $362,646,294 toward its consumer relief obligation, bringing the total amount of credit it has earned under the Settlement to $370,474,005. Additionally, SunTrust has exceeded the amount of credit it was required to earn through a refinance program.

This chart shows, by type of relief, the amount of credit SunTrust has earned to date:

Type of ReliefNumber of LoansEarned Credit Amount to Date
First Lien Mortgage Modifications454$68,670,465
Second Lien Portfolio Modifications7,7740$142,931,313
Refinancing Program1,600$42,778,768
Other Creditable Items1,162$35,069,085
New Lending Program5,965$81,024,375
Total Consumer Relief Programs16,921$370,474,005 1

Servicing Standards Compliance

I also evaluated SunTrust using 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’s compliance with the metrics in the third and fourth quarter 2015 involved 43 professionals, including my primary professional firm, my secondary professional firm and other professionals who dedicated approximately 21,470 hours over a six-month period.

This report covers SunTrust’s compliance with 312 tested metrics under the NMS during the third and fourth quarter 2015.

Metrics Testing

Neither SunTrust’s IRG nor my professionals found evidence of fails for any of the metrics tested in the third and fourth quarters 2015.


SunTrust has made significant progress toward fulfilling its consumer relief obligation and did not fail any metrics during the second half of 2015. I will continue to monitor SunTrust’s compliance with the NMS Servicing Standards and its progress toward fulfilling its consumer relief obligations. I will report my additional findings to the Court and the public later this year.

1Any dollar differences in totals are the result of rounding.

2There are 34 metrics in total. Policy and procedure metrics are tested annually, and three of which were not tested during this reporting period.