RICHMOND, Va. — If you’re one of the 3,200 Virginians who lost their home after failing to pay a SunTrust bank loan, you may soon be receiving cash.
A joint state-federal settlement made with SunTrust Mortgage will require banks to pay Virginia borrowers a total of $33.85 million. Those millions going back to state residents are part of a nationwide $550 million settlement.
On top of these fines, the bank will pay a $418 million penalty.
The settlement will provide direct payments to Virginia borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in need of assistance, tough new mortgage servicing standards, and gives an independent monitor oversight authority to enforce the settlement.
The risky loans were issued between Jan. 1, 2008 and December 31, 2013. The exact amount each borrower gets depends has not been determined; it depends on how many people plead their case.
The Commonwealth Attorney’s Office said that Virginia is one of the largest recipients of projected relief under the settlement, because of SunTrust’s geographic footprint in the southeast.
“I am pleased we were able to reach an agreement which ends and provides compensation for several unacceptable past practices by SunTrust,” said Attorney General Herring. “Because of this settlement’s tougher servicing standards, Virginia borrowers will be treated more fairly and in compliance with the law.”
Consumers who have questions or believe they may be eligible for relief or compensation as part of the settlement should contact SunTrust directly at 1-800-634-7928 or by using the email contact form at www.SunTrustMortgage.com.