HAMP Loan Modification Fraud Foreclosure - SunTrust Misled Customers
Posted in the Columbia Forum
#1 Jul 3, 2014
SunTrust Mortgage Inc. has agreed to pay up to $320 million to resolve allegations that it misled customers seeking loan modifications under a government program established to help homeowners avoid foreclosure
SunTrust Banks Inc., misrepresented or omitted information to borrowers participating in the federal Home Affordable Modification Program and failed to process applications in a timely manner. The company is making up to $274 million available to thousands of customers who suffered financial harm.
Government-sponsored enterprises Fannie Mae and Freddie Mac will receive $10 million, and $16 million will go to law enforcement agencies working on mortgage fraud and related matters. SunTrust also agreed to fund $20 million in grants to housing counseling agencies and to improve its administration of the loan modification program.
Settlement documents say delays in processing HAMP applications prevented some borrowers from pursuing other options to save their homes. Customers also were charged excessive interest and were improperly reported to credit bureaus as delinquent.
"SunTrust's administration of the HAMP program caused serious harm to the very Americans it was supposed to help,"
Last month, SunTrust and the Justice Department also agreed to a $1 billion settlement to resolve allegations that the company underwrote and endorsed faulty mortgage loans between 2006 and 2012.
#3 Jul 4, 2014
SunTrust in $320M settlement of US criminal mortgage probe
SunTrust Banks will pay as much as $320 million to resolve a criminal probe into its mortgage unit's mismanagement of a federal program designed to help struggling homeowners avoid foreclosure during the recession.
The U.S. Department of Justice on Thursday said SunTrust Mortgage Inc misled homeowners who sought relief through the Home Affordable Modification Program about how long it would take to review their qualifications, and how they would be treated during "trial periods."
As a result, thousands of homeowners suffered harm including damaged credit scores, excess interest payments, and an inability to pursue other options to ease financial stress, the Justice Department said.
The Atlanta-based bank said it "accepts and acknowledges responsibility" for "numerous" shortfalls in administering HAMP from March 2009 through December 2010.
The shortfalls included reporting as many as 75 percent of trial-period customers who were current on their mortgages as being delinquent, and once stacking backlogged, unopened HAMP applications so densely that the floor beneath them buckled.
"SunTrust's mismanagement drove up foreclosures, decimated individual credit and increased costs for hard-working men and women across our nation," Attorney General Eric Holder said
"This resolution will provide much-needed restitution for victims," he continued. "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."
SunTrust on June 17 had reached a $968 million settlement with the Justice Department over other questionable mortgage practices.
SunTrust agrees to nearly $1 billion settlement
SunTrust will pay at least $179 million, and as much as $274 million, in restitution to harmed borrowers.
It will also pay $10 million to government-controlled mortgage finance companies Fannie Mae and Freddie Mac,$16 million to combat mortgage fraud and $20 million to counsel distressed homeowners.
Add your comments below
|Music Review: Joal Rush's Kaleidoscope Emotions||40 min||rjkhtrjh||1|
|Riverland Area||Mar 3||ZYX765||1|
|BOBOS, Big Ol Box of Stuff or Robert Rice||Mar 2||Denavo||2|
|Orangeburg Man Dies in Homicide Friday (Feb '08)||Feb 22||Annette||41|
|Luther Dixon||Feb 18||Yes||1|
|The church IN the Lord Jesus Christ-Hartsville (Jan '13)||Feb '18||Jehu||63|
|Evil Women are bastards and demons! Beware!||Feb '18||Hell on Heels||2|
Find what you want!
Search Columbia Forum Now
Copyright © 2018 Topix LLC