SunTrust Agrees to Pay More Than $1Bilion in Settlements

SunTrust Agrees to Pay More Than $1Bilion in Settlements
Image: Pixabay
October 14, 2013

SunTrust Banks Inc. has agreed to cash payments and consumer relief totaling more than $1 billion to settle claims over its handling of government-backed mortgages.

SunTrust says that it will provide $500 million in consumer relief and pay $468 million in cash to settle claims by the U.S. Department of Justice and the Department of Housing and Urban Development (HUD).

The claims at the center of this settlement cover FHA-insured mortgages that SunTrust originated between 2006 and early 2012, and claims under a national settlement program.

SunTrust also agreed to a $373 million settlement with Fannie Mae and a $65 million settlement with Freddie Mac over loans funded by the housing-finance agencies between 2000 and 2012.