SunTrust Mortgage settles federal probe for $320MJuly 3, 2014 @ 12:56 pm
CHARLOTTESVILLE, Va. (AP) -- SunTrust Mortgage Inc. has agreed to pay up to $320 million to resolve allegations that it misled customers seeking loan modifications.
The company and U.S. Attorney Timothy Heaphy announced the settlement Thursday.
Settlement documents say SunTrust misrepresented or omitted information to borrowers participating in the federal Home Affordable Modification Program and failed to process applications in a timely manner. The company is making up to $274 million available for restitution to customers who suffered financial harm. Additional funds will go to Fannie Mae and Fannie Mac, to law enforcement agencies working on mortgage fraud and to mortgage counseling agencies.
SunTrust Mortgage CEO Jerome Lienhard said in a news release that the company recognizes there were deficiencies in its administration of the program and is focused on the future.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The Seattle Police Department unveils new uniforms, logo
'It Was My Turn'
K.J. Wright has signed a $27 million, four-year extension with the Seahawks
Find holiday events, Santa photo opportunities, and light displays
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.