Thursday, October 10, 2013

SunTrust Banks to pay more than $1B in settlements

SunTrust Banks said Thursday it will pay more than $1 billion in settlements reached with federal agencies over alleged mortgage violations and would record a loss of $323 million in the third quarter as a result.

The Atlanta-based bank, which has branches in the Charlotte region, said it will provide $500 million in "consumer relief" and pay $468 million in cash under agreements reached with the U.S. Department of Housing and Urban Development and the Department of Justice.

The company said the agreements settle claims arising from government-backed mortgages originated by SunTrust from January 2006 to March 2012. Also, under the National Mortgage Settlement, the bank is settling claims involving its mortgage servicing and origination practices.

SunTrust also said Thursday it will pay a $160 million penalty under a previously announced agreement with the Federal Reserve.

The bank reports third-quarter results next week.