SunTrust Mortgage will provide North Carolina residents millions of dollars of financial relief as part of a settlement with the state Attorney General and three federal agencies.
According to a settlement filed Tuesday in federal court in Washington, the Richmond-based subsidiary of SunTrust Banks will provide North Carolina residents $21.5 million in loan modifications and other relief.
The company will also pay about $2 million in cash to about 2,449 North Carolina residents who lost their homes to foreclosure, the N.C. Attorney General’s office said Tuesday.
The settlement involves 48 other states, the District of Columbia and three federal agencies: the U.S. Justice Department, the Department of Housing and Urban Development, and the Consumer Financial Protection Bureau.
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As part of the settlement, SunTrust will change the way it handles mortgage loans and foreclosures to prevent such abuses as robo-signing and lost paperwork.
The Justice Department filed the settlement Tuesday in U.S. District for the District of Columbia for the court’s approval, said N.C. AG spokeswoman Noelle Talley. The settlement itself was not available Tuesday.
The settlement is modeled on a 2012 settlement against five mortgage servicers, including Bank of America and Wells Fargo.