SunTrust completes consumer relief requirements under national mortgage settlement

Provides more than $500 million in consumer relief

SunTrust fulfilled its consumer relief obligations under the National Mortgage Settlement, wrapping up the relief requirements under a settlement with the government over mortgage servicing and foreclosure abuses.

More than three years ago, the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, the Consumer Financial Protection Bureau and attorneys general in 49 states and the District of Columbia announced a $968 million mortgage origination settlement with SunTrust.

Under the settlement, SunTrust was required to provide the following consumer relief by Sept. 30, 2017:

  • $475 million in consumer relief credit to distressed borrowers and by establishing a mortgage origination program.
  • $25 million in consumer relief credit by refinancing mortgages of borrowers who would not otherwise qualify for refinancing.

According to Joseph Smith, monitor of the National Mortgage Settlement, SunTrust has provided more than 22,327 borrowers with $503 million in consumer relief.

The breakdown of total credit can be found in the chart to below.

Click to enlarge

consumer relief

(Source: Office of the National Mortgage Settlement)

“SunTrust has satisfied its consumer relief obligation under the NMS,” said Smith. “I will continue to monitor SunTrust’s consumer compliance obligations and will report my findings to the Court and the public in the future.”

Smith noted that SunTrust passed all consumer compliance metrics tested during the second half of 2016 with one exception because the information on the company’s Proof of Claims files was not presented in the proper format. This error is being corrected and will be reported on in the future, Smith noted. 

Most Popular Articles

Regulators drop the hammer on Wells Fargo execs at the center of fake account scandal

Wells Fargo indicated just over a week ago that the fallout from its fake account scandal was far from over, disclosing that it has at least $3.1 billion set aside for expected litigation payouts. But that is at the company level. Meanwhile, the fallout for the executives who failed to prevent the fake account scandal looks to be far from over as well.

Jan 23, 2020 By

Latest Articles

RealPage continues growing, set to acquire Modern Message

Real estate tech company RealPage announced recently that it will be acquiring multifamily real estate engagement solution Modern Message.

Jan 24, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please