SunTrust Settles Mortgage Claims for More than $1B

SunTrust Banks settled mortgage fraud charges with the government by agreeing to pay more than $1 billion. The settlement involved the Department of Justice, the Department of Housing and Urban Development, and the Federal Reserve. The settlement includes $468 million in cash payments and $500 million in mortgage borrower relief. Additionally, SunTrust will pay $200 million to resolve issues with Fannie Mae and Freddie Mac. Finally, $160 million of the settlement will be applied to the mishandling of loans.

The portion being apportioned for the $160 million for mishandling of loans involves the bank joining the $25 billion settlement between several banks and 49 states entered into in 2012 that stemmed from the practice of “robo-signing foreclosure documents. SunTrust becomes the first bank to join the 2012 settlement since its original signing.

For a detailed article about the settlement, please see the Wall Street Journal, “SunTrust Settles U.S. Mortgage Claims,” October 11, 2013, page C3.

About Richard Serafini

Welcome to my blog. I am an attorney and practice in the area of corporate trial work. Areas of particular emphasis are white collar defense, securities litigation, health care litigation, internal investigations, RICO, and financial litigation. I will be posting interesting developments in my areas of interest. I hope that you find this blog helpful and informative.