Monday, July 21, 2014





US, SunTrust announce nearly $1B settlement


June 17. 2014 4:36PM
Associated Press

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(AP) The government on Tuesday announced a nearly $1 billion settlement with SunTrust to resolve allegations that it underwrote and provided faulty mortgage loans.


In reaching a $968 million deal, the Justice Department and government regulators accused SunTrust of giving borrowers false and misleading information and charging unauthorized fees.


"SunTrust's conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis" of 2008, Attorney General Eric Holder said in a statement.


The agreement is with SunTrust Mortgage, a Richmond, Virginia-based mortgage lender and subsidiary of SunTrust Banks Inc. The financial institution had announced the anticipated settlement in October.


As part of the deal, SunTrust has agreed to provide $500 million in homeowner relief and $418 million to resolve allegations that it underwrote bad loans.


SunTrust chief executive William H. Rogers Jr. said in a statement that SunTrust was pleased to have resolved the allegations. He said the company has made improvements to its mortgage underwriting processes and internal controls.


Associated Press


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