Back to top

Analyst Blog

Adding impetus to the sluggish economic recovery, SunTrust Banks, Inc. (STI - Analyst Report) is creating new jobs in the Charlotte area. The bank is recruiting 60 mortgage originators and underwriters at a recently opened loan processing and underwriting centre in the region.

Previously, the centre had hired 40 employees. The new employees are expected to be recruited by the end of this year. Upon completion of the recruitment process, the sales centre will have 60 loan officers and 40 underwriters.

The loan processing and underwriting centre is equipped with a call-centre to provide services to borrowers who desire to conduct transactions with a mortgage lender over the telephone, rather than visiting a bank branch and getting it done by a retail loan officer.

Management at SunTrust believes that the current low interest rate environment and the anticipation of a recovery in the housing market have led to a significant increase in the bank’s mortgage-related revenue. Further, demand for auto loans as well as small-business loans are rising.

In the first half of 2012, a substantial increase in the mortgage production income was witnessed, which was the primary contributor to the hike in non-interest income of the bank. Management believes that the addition of new staff at the Charlotte centre will perk up its mortgage lending capabilities throughout the bank’s diverse network.

Many U.S. banks – like Wells Fargo & Company (WFC - Analyst Report) – have employed a large number of mortgage-processing staff in the recent months to exploit the wave of refinancing, which is taking place in the current low interest rate environment. In addition to improving the quality of service dished out to the customers and improving the top line of the company, these additional job creations are expected to boost the sluggishly recovering economy.

SunTrust currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. However, considering the fundamentals, we maintain a long-term ‘Neutral’ recommendation on the shares.

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%