The Atlanta company spent roughly $440 million buying back problem loans from Fannie Mae and Freddie Mac last quarter, up 67% from the same period last year, and CEO Bill Rogers said at an investor conference that repurchase costs this quarter will be "well above" those of previous periods.
Fannie and Freddie are increasingly demanding that lenders buy back loans made during the housing boom and later packaged into securities that they claim did not comply with their standards for acquiring loans. Speaking to analysts and investors gathered at the New York conference hosted by Goldman Sachs Group Inc., Roger said that the increase in buyback requests has become a "volatile" issue between lenders and the government-sponsored enterprises.
"This is a frustrating process and one that's increasingly difficult to predict," Rogers said.
SunTrust's shares closed at $18.04.
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