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

How Photos Of Crisis Can Shape The Events They Represent

NPR's Rachel Martin talks with Kira Pollack, director of photography and visual enterprise at Time, about how iconic photos might affect the conversation about the events they have come to represent.
NPR

How Big Egg Tried To Bring Down Little 'Mayo' (And Failed)

Newly released emails from the American Egg Board reveal embarrassing details about its fight against the vegan product Just Mayo. Industry critics say the board's antics may have broken the law.
NPR

New Cellphone Surveillance Safeguards Imposed On Federal Law Enforcement

Federal law enforcement officials will be routinely required to get a search warrant before using secretive and intrusive cellphone-tracking technology under a new Justice Department policy.
NPR

How The Architect Of Netflix's Innovative Culture Lost Her Job To The System

Netflix is famous for pioneering a company culture that demands standout results from every employee. One of the architects of this philosophy ended up losing her job to the system she created.

Leave a Comment

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