SunTrust passes national mortgage settlement review
The mortgage unit of SunTrust Banks in Atlanta is in compliance with requirements for the national mortgage settlement for the second half of last year.
The $200 billion-asset company did not fail any of the compliance metrics that were tested during the third and fourth quarters of 2017, according to a report on Tuesday from Joseph Smith, the monitor of the settlement. The company had also passed its review for the first half of last year.
“SunTrust continues to make progress under the NMS,” Smith said in a press release. “I will continue to monitor SunTrust’s consumer compliance obligations and will report my findings to the court and the public on the final testing period in the future.”
SunTrust had previously failed metric four in the fourth quarter of 2015 and all four quarters of 2016. That metric tests the accuracy of information provided in proof of claims filed in bankruptcy court. The company had initially failed after making changes to an official form.
SunTrust was required to alert anyone affected by the error, issue refunds and pay for any damages.
In the wake of the financial crisis, some of the country’s largest banks and mortgage services entered into settlements with 49 state attorneys general, the District of Columbia and the federal government. The agreement settled certain investigations related to problems with mortgage servicing and created new servicing standards and provided relief for homeowners.
SunTrust reached its settlement in 2014. The deal required the company to provide $500 million in consumer relief and comply with the mortgage settlement servicing standards.