NPR : News

Filed Under:

SunTrust To Pay Nearly $1 Billion For Mortgage Practices

SunTrust has agreed to pay $968 million as part of a settlement with the government over charges that it failed to comply with standards required for federally backed mortgages.

The settlement between SunTrust Mortgage and the Justice Department and other agencies includes money for homeowners and a requirement that the company improve its procedures for mortgage loans and foreclosures.

The Wall Street Journal reports:

"The pact announced Tuesday is an outgrowth of an effort by the government to penalize banks for what officials say were rampant problems in their businesses of making mortgages and collecting payments.

"The settlement involves 49 state attorneys general and several federal agencies.

"The bank agreed to pay a $418 million penalty and admitted it didn't comply with lending standards mandated for loans insured by the Federal Housing Administration. The Justice Department cited internal SunTrust documents that show the bank's managers were aware of poor internal controls on loan underwriting, as well as high rates of error in loans backed by the FHA, which insures loans against default.

"The bank didn't admit or deny the government's other allegations."

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

NPR

Black Leadership In The Age Of Obama: A Look Back

PBS NewsHour co-anchor Gwen Ifill joins All Things Considered from the Democratic National Convention in Philadelphia, to discuss her 2009 book The Breakthrough. Ifill is re-examining the book's conclusions about black political leadership as President Obama prepares to leave office.
NPR

QUIZ: How Much Do You Know About Presidents And Food?

It's week two of the party conventions, and all these speeches are making us hungry. So we made a quiz to test your savvy about presidents and our favorite topic, food.
NPR

Trump's Call On Russia Interpreted As Invitation To Foreign Meddling

Donald Trump on Wednesday called for Russia to hack Hillary Clinton's email and recover messages from her tenure as secretary of state.
NPR

Police Use Fingertip Replicas To Unlock A Murder Victim's Phone

Michigan State University engineers tried 3-D-printed fingertips and special conductive replicas of the victim's fingerprints to crack the biometric lock on his Samsung Galaxy phone.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.