SunTrust Settles case about Faulty Mortgages

SunTrust has reached a $968 million settlement with the Justice Department that includes money for homeowner relief and a requirement that the company improve its handling of mortgage loans and foreclosures. For the full story go to ABC News.

Maryland will receive $33 million from the settlement reached with SunTrust Mortgage Inc. over past problems with its mortgage servicing and foreclosure procedures, the Maryland Attorney General’s office announced Tuesday according to the Baltimore Sun.

The money will fund loan modifications and other forms of relief over a three-year period such as one-time payments to those who lost homes to foreclosure in the past couple of years. This reflects the trend we have seen the past couple of years with several banks reaching settlements to resolve issues with faulty mortgages. Often though it is a little too late for some homeowners and for them there is little relief in the paltry one time payments often paid out.

 

 

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