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67 » VISIT US ONLINE @ DSNEWS.COM WANT TO BUY SOME REPERFORMING LOANS? In August, Fannie Mae began marketing its fourth sale of reperforming loans, as part of the GSE's effort to reduce the volume of its retained mortgage portfolio. Fannie Mae is marketing a pool of approximately 11,000 loans, approximately $2.5 billion in unpaid principal balance, which is available for purchase by qualified bidders. is sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. e Enterprise's previous reperforming loan sale, which was announced on May 10 and ended on July 21, included the sale of approximately 13,500 loans totaling $2.99 billion in unpaid principal balance (UPB). e sale was divided into three different pools, all three of which were won by DLJ Mortgage Capital, Inc. (Credit Suisse). ese pools were also marketed in collaboration with Citigroup Global Markets, Inc. Fannie Mae's third sale of reperforming loans consisted of multiple pools. Pool 1 consisted 5,179 loans with an aggregate unpaid principal balance of $1,147,189,914, an average loan size $221,508, a weighted average note rate 4.45 percent and a weighted average broker's price opinion (BPO) loan-to-value ratio of 94.90 percent. Pool 2 consisted of 5,096 loans with an aggregate unpaid principal balance of $1,120,135,737 an average loan size $219,806.86, a weighted average note rate 4.43 percent and a weighted average BPO loan-to-value ratio of 112.65 percent. Pool 3 consisted of 3,254 loans with an aggregate unpaid principal balance of $731,116,035, an average loan size $224,682.25, a weighted average note rate 3.86 percent, and a weighted average BPO loan-to-value ratio of 93.19 percent. Reperforming loans are defined as mortgages that are no longer in delinquency because payments on the mortgages have become current, with or without loan modification. e GSE's reperforming loan sales require the buyer to offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the reperforming loan sale. Bids for Fannie Mae's fourth reperforming loan sales are due on September 6. SUNTRUST COMPLETES SETTLEMENT AGREEMENT SunTrust completed its duty in providing over 22,000 borrowers with restitution for abuses in mortgage origination, servicing, and foreclosure practices in August. Of the $500 million, the company spent $475 million to credit distressed borrowers and also established a mortgage origination program. e remaining $25 million provided customer relief by refinancing mortgages to unqualified customers. e bank also passed all of its compliance metrics with the exception of one due to formatting issues, but is in the process of being corrected. "SunTrust has satisfied its consumer relief obligations under the [National Mortgage Settlement]," said Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement (NMS). "I will continue to monitor SunTrust's consumer compliance obligations and will report my finding to the Court and the public in the future." e $500 million was part of a larger settlement back in June of 2014 with the Justice Department, Department of Housing and Urban Development (HUD), the Consumer Finance Protection Bureau (CFPB), and states attorneys general. e remaining $418 million was paid to settle potential liability under the False Claims Act for originating and underwriting loans that violated its participation in the Federal Housing Administration's insurance program. According to the settlement, SunTrust admitted to writing faulty loans between January 2006 and March 2012, as well as did not carry out its due diligence in creating quality control programs to identify defective loans, and further did not report to the HUD the defective loans it did manage to find. All in all, it is estimated that over 50 percent of SunTrust's FHA-insured loans were not within FHA guidelines.

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