SunTrust (STI) is making a series of changes to its mortgage portfolio and repurchase reserves in order to better position itself, according to a statement from the lender.

For one, it is increasing mortgage repurchase reserves.

"In light of ongoing discussions with Fannie Mae and Freddie Mac, the company expects to record an estimated () mortgage repurchase provision during the quarter," the lender said in a statement.

SunTrust also intends to transfer about () of loans from its portfolio to loans held for sale.

These will be a mixture of nonperforming commercial real estate loans, delinquent () loans, and delinquent and current student loans.

SunTrust also intends to sell about () of affordable housing investments from subsidiary Transom Development.

"These actions better position SunTrust for the future by further improving our risk profile and strengthening our balance sheet while keeping regulatory capital ratios stable," said SunTrust CEO () "Furthermore, the steps we are taking add to the momentum SunTrust has been building, with consistently improving financial trends, and progress in many of our markets."