SunTrust confirms agreement to settle certain legacy mortgage matters

theflyonthewall.com

SunTrust Banks announced the definitive agreement to settle certain legacy mortgage matters with the U.S. Department of Housing and Urban Development and the U.S. Department of Justice. The settlement finalizes the agreements in principle announced in October 2013. Specifically, the company settled claims related to SunTrust's origination of FHA-insured mortgages and SunTrust's portion of the National Mortgage Servicing Settlement. As previously disclosed, SunTrust's commitment under the agreements includes consumer relief of $500M and a cash payment of $468M. SunTrust will not incur an incremental charge relative to the financial commitments previously disclosed, the company said. SunTrust CEO William Rogers, Jr., said, "As we said when these agreements in principle were announced, we are pleased to have resolved these legacy mortgage matters. Like most major financial institutions, we are addressing issues related to mortgage matters stemming from the financial crisis and recession period."

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