Law Office of Melanie Murray Mfume, LLC -
RSS

Recent Posts

Servicemembers Civil Relief Act
Chase Officially Satisifes $4 Billion RMBS Settlement Consumer-Relief Requirement
Ocwen Foreclosures Frozen After National Mortgage Settlement Compliance Failure
CFPB Fines Wells Fargo $100 Mil for Secretly Opening Unauthorized Accounts
Consumer Financial Protection Bureau Expands Foreclosure Protections

Categories

Family law
Foreclosure prevention
powered by

My Blog

SunTrust Bank Settles With Feds for Nearly $1 Billion

SunTrust Banks, Inc., announced it has struck a nearly $1 billion deal with the government to settle allegations of misconduct in both its lending and servicing practices.

In an agreement reached with the Consumer Financial Protection Bureau (CFPB), Justice DepartmentHUD, and attorneys general in 49 states and the District of Columbia, SunTrust agreed to provide relief to consumers and payments to the government totaling a combined value of $968 million.

Among other complaints, the government had charged SunTrust with "systemic mortgage servicing misconduct," including failing to promptly and accurately apply borrower payments, robo-signing, and other illegal foreclosure practices.

The government order requires the company to provide $500 million in relief to underwater borrowers. SunTrust is also required to pay $40 million to approximately 48,000 consumers who lost their homes as well as $10 million to cover losses suffered by the Federal Housing Administration (FHA) and other government insurers.

In a statement, SunTrust Banks chairman and CEO William H. Rogers Jr. said, "As we said when these agreements in principle were announced, we are pleased to have resolved these legacy mortgage matters. Like most major financial institutions, we are addressing issues related to mortgage matters stemming from the financial crisis and recession period."
The bank said it will not incur an incremental charge as a result of the settlement.

In addition, SunTrust will pay $418 million to resolve its potential liability for originating and underwriting FHA loans between January 2006 and March 2012 that did not meet agency requirements. According to a release from the Justice Department, the bank admitted that numerous audits between 2009 and 2012 "described significant flaws and inadequacies in SunTrust's origination, underwriting, and quality control processes," with as many as 50 percent or more of FHA-insured mortgages in non-compliance.

"SunTrust's conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis," said Attorney General Eric Holder. "From mortgage origination to servicing to securitization, the Department of Justice is attacking every facet of conduct that led to the Great Recession."

The servicing portion of the settlement mirrors the 2012 $25 billion National Mortgage Settlement between top servicers and the government, which the Justice Department says was used as a framework for the latest deal.

While the agreement closes the book on potential violations in SunTrust's origination and servicing operations, it does not prevent agencies from pursuing the bank on criminal actions or wrongful securitization conduct. It also leaves the door open for CFPB to take civil enforcement actions on any future violations of its mortgage servicing rules implemented at the start of the year.

 http://dsnews.com/news/06-18-2014/suntrust-bank-settles-feds-nearly-1-billion



8 Comments to SunTrust Bank Settles With Feds for Nearly $1 Billion:

Comments RSS
http://www.spotwatch.co.uk on Friday, October 10, 2014 1:30 AM
Chanel, Gucci, Citizen, Concord, Daniel Roth, ESQ, Harry Winston, Kenneth Cole, Maurice Lacroix, Omega, Rado and Zenith. Price is not the only feature which must be considered when searching for the proper luxurious watch. It is also important to find the material that the wrist watch is manufactured.
Reply to comment
 
Mckayla Majorca on Thursday, December 08, 2016 2:24 PM
Hey there, because the weather was pretty nasty this morning so I made a decision to skip work and explore the internet instead, I should say it was such a awesome experience for me as I called in at your web site. I hope you don't mind if I commend you upon the outstanding quality of the work and to wish you all the best with it as you develop as time goes on. It was a hoot to explore this webpage and I shall most definitely be dropping by again shortly to see precisely how you're progressing. Thank you and I will see you here very soon - Mckayla Majorca


http://www.araninfo.com/maps.html on Friday, October 10, 2014 1:31 AM
Mulberry wallet, jointly for some other products from best designers.Once you go searching to see nearly all women are adorned in designer brands cap-a-pie. Ya think this is because the individuals now take over more income to obtain these expensive branded items?
Reply to comment


http://www.westhouserousdon.co.uk on Friday, October 10, 2014 1:31 AM
Many of the top designer brands are Louis Vuitton, Gucci, Chanel, Fendi, Prada, Vera Bradley and Christian Dior. These names need no introduction, however, these designer and branded bags could be very expensive.
Reply to comment


reflexology courses london on Saturday, August 29, 2015 1:01 PM
I’m very impressed plus your approach along with words-at all also using the page layout as part of your weblog. You've ever have were able to appeal to a lot of seems like, continue the good work!!!!!!
Reply to comment


www.chesternet.co.uk on Friday, April 29, 2016 1:29 AM
The bank said it will not incur an incremental charge as a result of the settlement.
Reply to comment


Anonymous on Monday, November 13, 2017 1:03 AM
Reply to comment


thebestessayshelp.net on Monday, November 13, 2017 1:03 AM
The bank settles as well as by the gaining of the different accounts may occur by the time and make the thing better for the future concern. There are some of the best thing with them and make a great type of the impact.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment