SunTrust Enters Definitive Agreement on Certain Legacy Mortgage Matters
Jun 17, 2014
ATLANTA, June 17, 2014 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) today announced the definitive agreement to settle certain legacy mortgage matters with the U.S. Department of Housing and Urban Development and the U.S. Department of Justice. The settlement finalizes the agreements in principle announced in October 2013.
Specifically, the company settled claims related to SunTrust's origination of FHA-insured mortgages and SunTrust's portion of the National Mortgage Servicing Settlement. As previously disclosed, SunTrust's commitment under the agreements includes consumer relief of $500 million and a cash payment of $468 million. SunTrust will not incur an incremental charge relative to the financial commitments previously disclosed.
"As we said when these agreements in principle were announced, we are pleased to have resolved these legacy mortgage matters," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. "Like most major financial institutions, we are addressing issues related to mortgage matters stemming from the financial crisis and recession period."
Over the past several years, SunTrust has made significant improvements to its mortgage underwriting processes and internal controls. This includes increased training and the establishment of a center of specialization to underwrite all government-insured mortgages, which has led to improved quality control and significantly reduced error rates. The company also completed timely implementation of stringent new regulatory requirements for loan origination and disclosure issued by the Consumer Financial Protection Bureau (CFPB) across all of its retail and correspondent origination locations.
"SunTrust has a long history of providing high quality products and service to clients, while promoting financial well-being in the communities we serve," Rogers said. "We look forward to continuing that commitment."
About SunTrust Banks, Inc.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of March 31, 2013, SunTrust had total assets of $172.4 billion and total deposits of $129.9 billion. Through its flagship subsidiary, SunTrust Bank, the company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The company also serves clients in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the company provides mortgage banking, insurance, brokerage, investment management, equipment leasing and investment banking services. SunTrust's Internet address is suntrust.com.
SOURCE SunTrust Banks, Inc.
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