The financial services giant BB&T (BBT)
announced that it no longer provides adjustable-rate mortgages backed by the Federal Housing Administration
or the department of Veteran Affairs
. A spokesperson from the firm told HousingWire
it's a strategic business move.
"At BB&T we consistently evaluate our product line and make adjustments based on clients' needs," the spokesperson said in an official statement. "In this evaluation process we found the FHA and VA adjustable-rate mortgage product to be a very low volume product and have taken it off our list of offerings."
Recently, BB&T reported a 74% increase in quarterly earnings for Q210
. The gain was attributed to the acquisition of a warehouse lending division in August from failed back Colonial Bank, which grew BB&T's total loans and leases 4.4% from the year prior.
The financial firm was also ranked the No. 1 bank for customer satisfaction
with regard to servicing. In 2009, BB&T placed second on the same survey.
The news of BB&T suspending its FHA and VA ARMs was first announced in an email blast by Mortgage News Clips
Write to Christine Ricciardi
The author held no relevant investments.