The American Bankers Association has signed up SunTrust Banks Inc.'s mortgage unit as a "preferred" secondary market investor for the trade group's cooperative, Community Bank Mortgage LLC.
Under the agreement announced Wednesday, the 53 owner banks of the cooperative can now sell residential mortgages, including jumbo loans, on a servicing-released basis to SunTrust.
Community Bank Mortgage has two other preferred investors, Wells Fargo & Co. and Bank of America Corp.
Debbie Whiteside, the president and chief operating officer of Community Bank Mortgage, said SunTrust will purchase jumbo loans with fixed and adjustable rates. Wells Fargo purchases only fixed-rate mortgages.