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Briefcase: SunTrust Mortgage to pay up to $320 million in loan modification settlement

Fri., July 4, 2014

CHARLOTTESVILLE, Va. – SunTrust Mortgage Inc. has agreed to pay up to $320 million to resolve allegations that it misled customers seeking loan modifications.

The company and U.S. Attorney Timothy Heaphy announced the settlement Thursday.

Settlement documents say SunTrust misrepresented or omitted information to borrowers participating in the federal Home Affordable Modification Program and failed to process applications in a timely manner. The company is making up to $274 million available for restitution to customers who suffered financial harm. Additional funds will go to Fannie Mae and Freddie Mac, to law enforcement agencies working on mortgage fraud and to mortgage counseling agencies.

SunTrust Mortgage CEO Jerome Lienhard said in a news release that the company recognizes there were deficiencies in its administration of the program and is focused on the future.

Boeing reports more deliveries

CHICAGO – The Boeing Co. said Thursday that it delivered 181 commercial planes during the second quarter, a 7.1 percent increase from the same period a year ago.

The deliveries included 124 next-generation 737s, 30 787s, 24 777s, two 747s and one 767. It said it has delivered a total of 342 commercial planes so far this year.

The Chicago company said its defense, space and security unit also saw gains. It delivered 45 planes or helicopters and two satellites. That’s up from the 31 planes and helicopters it delivered in the second quarter last year.

Services sector growth slows

WASHINGTON – U.S. services firms expanded again last month but at a slightly slower pace than they did in May. Orders, exports and hiring grew faster in June.

The Institute for Supply Management said Thursday that its service-sector index slipped to 56 last month, down from May’s 56.3 reading. Any figure above 50 indicates expansion, however.

The ISM is a trade group of purchasing managers.

The services survey covers businesses that employ 90 percent of the workforce, including retail, construction, health care and financial services firms.

Fourteen of 18 services industries expanded in June, led by construction.

Mortgage rate drops even lower

WASHINGTON – Average U.S. mortgage rates are near historically low levels.

Mortgage company Freddie Mac said Thursday that the nationwide average rate for a 30-year loan dipped to 4.12 percent, down from 4.14 last week. The average for the 15-year mortgage, which had taken a big dip the previous week, was unchanged this week at 3.22 percent.

Rates on one-year adjustable mortgages averaged 2.38 percent this week, down from 2.40 percent last week.

Mortgage rates are slightly lower than they were at the same time last year.

The average rate on a five-year adjustable rate mortgage was 2.98 percent, unchanged from last week.

MEXICO CITY – Germany’s BMW announced Thursday it will spend $1 billion to build a new luxury car factory in northern Mexico that will start production in 2019 as part of an effort to expand the company’s sales in the United States.

BMW board member Harald Kruger said the plant in the northern state of San Luis Potosi will have the capacity to make 150,000 cars a year while employing 1,500 people.

Kruger said BMW’s only other North American factory, in Spartanburg, South Carolina, will receive $1 billion in investment to increase its production capacity to 450,000 cars by the end of 2016.


 

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