SunTrust $550 million settlement foreclosure abuses, Attorney General Kamala Harris on Tuesday announced a $550 million joint state-federal settlement with mortgage lender and servicer SunTrust Mortgage to address mortgage origination, servicing and foreclosure abuses.
The three-year settlement provides direct payments to California borrowers for past foreclosure abuses, loan modifications and sets up relief for borrowers in need of assistance.
The state has identified 4,733 California borrowers who may be eligible for a portion of the SunTrust settlement that was reached in 48 states and with the U.S. Department of Justice, Housing and Urban Development and the Consumer Financial Protection Bureau.
SunTrust will provide all borrowers with $500 million worth of loan modifications and other relief. The state estimates that California borrowers whose loans were serviced by SunTrust and who lost their home to foreclosure from Jan. 1, 2008 through Dec. 31, 2013, and encountered servicing abuses will be eligible for a payment from a $40 million fund.
Eligible borrowers will be contacted by an independent settlement administrator.….