SunTrust says cooperating with U.S. foreclosure expense probe

Reuters

Aug 6 (Reuters) - SunTrust Banks Inc, a U.S. southeast regional bank, on Wednesday said it is cooperating with the office of U.S. Attorney Preet Bharara in New York in a broader-based industry investigation regarding claims for foreclosure-related expenses charged by law firms.

In a regulatory filing, the Atlanta-based lender said the charges concern the foreclosure of loans guaranteed or insured by government-controlled mortgage companies Fannie Mae or Freddie Mac, or by the Federal Housing Administration.

SunTrust said the probe relates to a private whistleblower lawsuit that was filed under seal, and which remains in its early stages. It said it "engaged in dialogue" with Bharara's office about a possible resolution to this matter, but was unable to reach an agreement.

(Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)

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