Idaho has joined 48 states and the federal government in a settlement with SunTrust Mortgage over home loan and foreclosure abuses; under the settlement, the company will make direct payments to 220 Idaho borrowers who lost their homes to foreclosure between 2008 and 2013. Click below for the full announcement from Idaho Attorney General Lawrence Wasden.
STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
For Immediate Release
Tuesday June 17, 2014
Idaho joins 48 other states, federal government in settlement with SunTrust Mortgage Inc.
(Boise) – Attorney General Lawrence Wasden announced today a $550 million joint state-federal settlement with mortgage lender SunTrust Mortgage Inc. (“SunTrust”) designed to address mortgage origination, servicing and foreclosure abuses.
“While Idaho’s housing crisis has stabilized, my office continues to hold mortgage servicers accountable for past abuses,” Attorney General Wasden said. “This settlement requires SunTrust to change not only how it services future loans, but to provide relief to current Idaho customers.”
The three-year settlement includes Idaho and 48 other states, the District of Columbia, the U.S. Department of Justice and the U.S. Department of Housing and Urban Development. The deal resembles the National Mortgage Settlement, brokered in February 2012, involving the federal government, Idaho and 48 other states and the five largest national mortgage servicers.Specifically, the settlement reached with SunTrust requires the company to:
- Provide Idaho borrowers an estimated $479,448 worth of loan modifications, including principal reductions and refinances;
- Make direct payments to approximately 220 eligible Idaho borrowers who lost their homes to foreclosure between January 1, 2008, and December 31, 2013;
- Implement strict servicing standards that will change how it services mortgage loans and handles foreclosures;
- Submit to an independent monitor’s oversight authority.
As additional information about the settlement becomes available, the Attorney General will post it on his website atwww.ag.idaho.gov. Current borrowers may contact SunTrust if they have questions about their eligibility for a loan modification or qualify for certain forms of relief. The toll-free number is 1-800-634-7928, and the website is www.SunTrustMortgage.com.