STI » Topics » Commercial Mortgage Loans

This excerpt taken from the STI 10-Q filed May 8, 2009.

Commercial Mortgage Loans

Certain transfers of commercial mortgage loans were executed with third party special purpose entities, which the Company deemed to be QSPEs and did not consolidate. During 2008, the Company sold all of the related servicing rights, which were not financial assets subject to SFAS No. 140, in exchange for cash proceeds of approximately $6.6 million. As seller, the Company has made certain representations and warranties with respect to the originally transferred loans, but the Company has not incurred any losses with respect to such representations and warranties.

These excerpts taken from the STI 10-K filed Mar 2, 2009.

Commercial Mortgage Loans

Certain transfers of commercial mortgage loans were executed with third party special purpose entities, which the Company deemed to be QSPEs and did not consolidate. The Company’s continuing involvement in these commercial loan transactions was limited to certain servicing activities, but not including any special servicing or decision making

 

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SUNTRUST BANKS, INC.

Notes to Consolidated Financial Statements (Continued)

 

capabilities. The Company’s servicing activities were de minimis in the context of the overall transaction, such that the qualification of these entities as QSPEs was not relevant to the Company’s ultimate accounting conclusions as the Company would not have consolidated these entities even if they were not QSPEs. The nature of the Company’s servicing rights did not result in a servicing asset or a servicing liability for the Company, as the servicing fees were deemed adequate compensation for the servicing costs and are, therefore, recognized as earned. During 2008, the Company sold all of the related servicing rights, which are not financial assets subject to SFAS No. 140, in exchange for cash proceeds of approximately $6.6 million.

Commercial Mortgage Loans

STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%">Certain transfers of commercial mortgage loans were executed with third party special purpose entities, which the Company deemed to be QSPEs and did not
consolidate. The Company’s continuing involvement in these commercial loan transactions was limited to certain servicing activities, but not including any special servicing or decision making

 


109







Table of Contents



SUNTRUST BANKS, INC.

ALIGN="center">Notes to Consolidated Financial Statements (Continued)

 



capabilities. The Company’s servicing activities were de minimis in the context of the overall transaction, such that the qualification of these
entities as QSPEs was not relevant to the Company’s ultimate accounting conclusions as the Company would not have consolidated these entities even if they were not QSPEs. The nature of the Company’s servicing rights did not result in a
servicing asset or a servicing liability for the Company, as the servicing fees were deemed adequate compensation for the servicing costs and are, therefore, recognized as earned. During 2008, the Company sold all of the related servicing rights,
which are not financial assets subject to SFAS No. 140, in exchange for cash proceeds of approximately $6.6 million.

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