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