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SunTrust to pay more than $1B in settlements

SunTrust to pay more than $1B in settlements

October 11th, 2013 in News

ATLANTA (AP) - SunTrust Banks Inc. says it has agreed to cash payments and consumer relief totaling more than $1 billion to settle claims over its handling of government-backed mortgages.

The Atlanta-based banking company said Thursday that will provide $500 million in consumer relief and pay $468 million in cash to settle claims by the Justice Department and the Housing and Urban Development Department. The claims covered FHA-insured mortgages that the bank originated between 2006 and early 2012 and claims under a national settlement program.

SunTrust said it also agreed to a $373 million settlement with Fannie Mae and a $65 million settlement with Freddie Mac over loans funded by the housing-finance agencies between 2000 and 2012.