Tuesday, June 17, 2014

North Carolina getting $21.5 million in SunTrust settlement

SunTrust is the latest bank to settle with a consortium of state and federal officials over mortgage servicing mistakes, agreeing to a deal Tuesday that's close to $1 billion.

North Carolina homeowners with SunTrust mortgages are due to receive $21.5 million in payments and loan modification relief, Attorney General Roy Cooper's office said.

A total of $550 million is going to states and the U.S. Housing and Urban Development as part of a settlement that's related to the $25 billion accord reached with Bank of America, Wells Fargo and three other big banks back in 2012.

SunTrust is paying the U.S. Department of Justice another $418 million in a separate but related settlement.

The governments allege that SunTrust took shortcuts in mortgage servicing, including mass production of foreclosure documents known as robo-signing.