The proposed $66 billion merger between BB&T and SunTrust will create the sixth-largest U.S. bank based on assets and deposits. The yet-to-be-named institution creates a new megabank competitor for top origination and servicing volume.
National Mortgage News reports there are significant impacts from the merger. Among them is the transformation of what have been two top-20 companies into a single top-10 player, estimates Tom Millon, CEO of Computershare Loan Services.
Also, SunTrust’s and BB&T’s overlapping footprints in the Southeast, mid-Atlantic and parts of the Midwest suggest there will be some mortgage-related cuts where there are redundancies, but also some improvements. Should the assimilation of BB&T and SunTrust processes go swiftly and effectively, the article also said, the soon-to-be megabank could become a force to be reckoned with. But that's only if the new bank is able to capitalize and not get swallowed by efforts to integrate.