SunTrust Settles with DOJ for US$968 Million

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On June 17, the United States Department of Justice announced a US$968 million settlement with SunTrust Mortgage Inc. Other parties to the settlement are the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, and the attorneys general of 49 states and the District of Columbia. The settlement resolves allegations of mortgage loan origination, servicing, and foreclosure abuses. Approximately US$500 million of the settlement will be used for homeowner relief. The settlement also resolves claims under the False Claims Act that SunTrust originated and underwrote Federal Housing Administration-insured mortgages that did not meet applicable requirements. Press Release.

Topics:  Attorney Generals, CFPB, DOJ, Foreclosure, HUD, Loan Servicer, Mortgage Loan Originators, Settlement, SunTrust

Published In: Criminal Law Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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