SunTrust Mortgage (STI) agreed to pay $320 million to resolve the criminal investigation into the company’s Home Affordable Modification Program by the U.S. Department of Justice.
According to the DOJ, SunTrust misled numerous mortgage servicing customers who sought mortgage relief through HAMP.
“Specifically, SunTrust made material misrepresentations and omissions to borrowers in HAMP solicitations, and failed to process HAMP applications in a timely fashion,” the report said.
“This resolution will provide much-needed restitution for victims,” said Attorney General Eric Holder. “It will make available substantial funds to help other homeowners avoid foreclosure. And it will result in the kinds of systemic changes needed to ensure that this will not happen again.”
Broken up, up to $284 million will be paid in restitution directly to the victims of SunTrust’s conduct, in addition to a $20 million grant fund which will be distributed to agencies working with distressed homeowners and provide $16 million in asset forfeiture funds that will be used by law enforcement for future mortgage fraud investigations.