SunTrust Banks pays nearly $1 billion in mortgage abuse case settlement
By Agence France-Presse
Tuesday, June 17, 2014 19:02 EDT
THE RAW STORY
SunTrust Banks agreed Tuesday to pay $968 million to settle US charges, rooted in the 2008 financial crisis, that it mislabeled huge numbers of defective mortgages as quality loans, abusing borrowers.
The Atlanta, Georgia-based SunTrust's deal with three federal government agencies and 49 states includes $500 million in relief to consumers who suffered from its practices between 2006 and 2012.
Another $418 million in cash goes to resolving potential charges against the bank for originating and underwriting loans that it claimed adhered to the standards of the Federal Housing Administration (FHA).
The balance, $50 million, will be mostly distributed to borrowers and homeowners who suffered from alleged mortgage abuse.
SunTrust admitted to the poor and abusive practices in the settlement, but avoided criminal charges.
Tuesday, June 17, 2014
This one is a pretty big fine:
Posted by Steve J. at 7:17 PM