SunTrust to pay nearly $1 billon for mortgage origination practices

Reuters

WASHINGTON, June 17 (Reuters) - SunTrust Mortgage Inc has agreed to pay $968 million to settle a U.S. federal probe into allegations of mortgage origination, servicing and foreclosure abuses, the U.S. Justice Department said on Tuesday.

SunTrust, the seventh largest mortgage servicer, disclosed in October it had set aside $1.2 billion to settle the probe.

Five top banks in 2012 entered into a landmark $25 billion deal to resolve similar allegations of servicing misconduct.

(Reporting by Julia Edwards; Editing by Peter Cooney)

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