Consumer Bureau Action Tracker

CFPB v. SunTrust Mortgage


State

Nationwide

target

SunTrust Mortgage, Inc.

Topics

Enforcement, Mortgages

In conjunction with The Justice Department, The Department of Housing and Urban Development, and forty-nine state attorneys general, the CFPB filed a lawsuit against SunTrust Mortgage “after multiple investigations revealed that SunTrust allegedly robo-signed mortgage documents and illegally foreclosed on consumers” in 2014. As a result of the settlement, SunTrust Mortgage was ordered to “provide $500 million in relief to struggling borrowers, pay $418 million to DOJ, give $40 million in restitution to roughly 48,000 improperly foreclosed borrowers and pay an additional $10 million fine to the government.”

  • The multi-agency lawsuit, 1:14-cv-01028-RMC filed in the U.S. District Court for the District of Columbia, was brought about “after multiple investigations revealed that SunTrust allegedly robo-signed mortgage documents and illegally foreclosed on consumers.”_ The Justice Department stated that SunTrust “wrote loans that didn’t comply with FHA criteria and failed to report even those non-compliant loans that it knew about to the U.S. Department of Housing and Urban Development.” [Rachel Witkowski, “SunTrust to Pay Nearly $1B Over Foreclosures, Mortgage Practices”, Payments Source, 06/19/14 and Sheryl Harris, “SunTrust settles for nearly $1B Mortgage servicer to give borrowers modifications, pay penalty,” Cleveland Plain Dealer, 06/18/14]
  • As a result of the settlement, SunTrust Mortgage was ordered to “provide $500 million in relief to struggling borrowers, pay $418 million to DOJ, give $40 million in restitution to roughly 48,000 improperly foreclosed borrowers and pay an additional $10 million fine to the government.” [Rachel Witkowski, “SunTrust to Pay Nearly $1B Over Foreclosures, Mortgage Practices”, Payments Source, 06/19/14]
  • SunTrust Mortgage was ordered to “pay $418 million to resolve liability for originating loans that violated its obligations under the Federal Housing Administration insurance program” as a result of the Justice Department’s involvement._ They had to pay an additional “$500 million to borrowers over the next three years in the form of mitigation activities, primarily by reducing principal or lowering interest rates” and “$10 million to cover losses to the Federal Housing Administration, Department of Veterans Affairs and the Rural Housing Service” over the course of the “three-year settlement.” [Rachel Witkowski, “SunTrust to Pay Nearly $1B Over Foreclosures, Mortgage Practices”, Payments Source, 06/19/14 and Donesha Aldridge, “States Reach $550 Million Joint Settlement with SunTrust over Mortgage Foreclosure Abuses,” CBS-12 WJTV, 06/17/14; and Sheryl Harris, “SunTrust settles for nearly $1B Mortgage servicer to give borrowers modifications, pay penalty,” Cleveland Plain Dealer, 06/18/14]

Status

Inactive or Resolved


1:14-cv-01028-RMC 6/17/2014 9/30/2014

CFPB, Federal Partners, and State Attorneys General File Order Requiring SunTrust to Provide $540 Million in Relief to Homeowners for Servicing Wrongs
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/suntrust-mortgage-inc/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the District of Columbia
  • Nonbank
  • $968,000,000
  • 48,000

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