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» LENDER/SERVICER PROFILE VISIT US ONLINE @ DSNEWS.COM REGIONAL INSTITUTION SunTrust Mortgage Jerome T. Lienhard President and CEO company vitals Steve Shriner Headquarters: Atlanta, Georgia SVP and CFO Phone: 404.588.7711 Mark Shulman Online: SunTrust.com SVP and Chief Credit Officer Take a look inside the numbers s tat e s s e r v ic e d* SunTrust Mortgage, Inc., ranks itself as the seventh largest residential mortgage lender in the United States and the sixth largest servicer of mortgage loans. SunTrust Mortgage is a wholly owned subsidiary of SunTrust Bank and was created when SunTrust Bank acquired Crestar Financial Corporation in 1998. SunTrust Mortgage was ranked fourth highest in overall customer satisfaction among mortgage servicing companies by J.D. Power and Associates in 2011 and ranked in the top five in 2010, 2008, 2007, and 2005. Paul Mangelsdorm EVP, Credit Risk Staffing » Servicing staff: 1,378 company's l atest servicing summary * Portfolio Stats » Residential servicing portfolio: $145B (UPB) Portfolio Growth Unpaid Principal Balance (UPB) » 2012: $145B » 2011: $158B » Annual Change: -8.2% Delinquency Stats » 30-89 day delinquency rate, residential mortgages nonguaranteed: 0.82%, down from 1.39% in Q4 2011 » Nonperforming residential mortgages: $775M » Slow credit improvement reflects SunTrust's disproportionate exposure to Southeast residential mortgages, according to FBR Capital Markets Foreclosure Stats » Net charge-offs, residential mortgages: $161M (Q4 2012) » Net charge-offs, residential mortgages: $671M (FY 2012) » Average days in foreclosure: 352 *As of Q4 2012 stat insight $356 Million Net profit of Georgia's biggest lender in 2012, up from $74M profit in 2011. Florida September 7, 2012 18% FBR: SunTrust Expected to Improve, but Still Vulnerable Georgia 12% Virginia 12% SunTrust is taking steps to improve its position in the market. The bank has continued to grow its mortgage banking division, which earned $258 million last quarter, according to FBR Capital Markets. While this was offset by repurchase provisions, the bank has now settled short-term losses, leaving FBR with expectations of profitability "especially as the refi boom continues." FBR expects the Atlanta-based bank to bring in $531 million from its mortgage banking division this year and close to twice that next year. With the announcement of a $375 million reps and warranties provision, FBR announced Friday that "[t]his charge will likely take care of any reps and warrants losses [SunTrust] may incur in the short term." In FBR's previous report, it suggested SunTrust was likely to see $800 million in repurchases losses from the GSEs. However, FBR now says, "we believe that today's $375 million charge should alleviate investor concerns in the short term." FBR has revised its 2013 estimates up as a result but does expect about $250 million reps and warrants losses next year. North Carolina —DSNews.com June 1, 2012 SunTrust Mortgage Settles Racial Discrimination Complaint for $21 Million SunTrust Mortgage has agreed to pay $21 million to settle a federal lawsuit alleging racial discrimination in its lending practices against Hispanics and African Americans. This is the second-largest fair lending settlement ever obtained by the U.S. Department of Justice. A complaint filed by the department in U.S. District Court in Richmond said SunTrust Mortgage charged more than 20,000 black and Hispanic borrowers more than similarly qualified non-Hispanic white borrowers between 2005 and 2009. Minority borrowers in 75 geographic markets stretching from Virginia Beach to San Francisco paid more in loan fees or higher interest rates based solely on race or national origin, according to the complaint. The consent order filed along with the complaint says SunTrust Mortgage denied wrongdoing but agreed to the settlement to avoid expensive and potentially risky litigation. —Associated Press servicer r atings Fitch Ratings: Residential Primary Servicer, Prime » RPS2 Source: Bloomberg California 6% 6% *As of Q3 2012 2013 str ategy SunTrust Mortgage's day-to-day activities focus on five corporate initiatives: » Delivering superior client service » Maintaining a highly skilled and motivated work force » Emphasizing credit quality » Maintaining a strong balance sheet » Focusing on income and cost management key technology Servicing: LPS' Mortgage Servicing Package (MSP) know this SunTrust Mortgage ended 2012 with $173.2 billion in total assets. origination summary* » 2012 production volume up $9B, or nearly 40% » 2012 revenue increased 42% despite higher repurchase provisions » Core mortgage production income up $573M, or 119%, in 2012 *As of 2012 year-end Sources: SunTrust Mortgage (1/17/2013, 2/1/2013), FBR Capital Markets & Co. (9/7/2012), Fitch Ratings (2/12/2012) 81