Banking

1,454 N.C. borrowers receiving SunTrust settlement checks

Cash payments are on their way to more than 1,400 North Carolina residents who are receiving a portion of a $2 million settlement with SunTrust Banks over mortgage missteps, Attorney General Roy Cooper’s office announced Friday.
Cash payments are on their way to more than 1,400 North Carolina residents who are receiving a portion of a $2 million settlement with SunTrust Banks over mortgage missteps, Attorney General Roy Cooper’s office announced Friday. rlahser@charlotteobserver.com

Cash payments have been mailed to more than 1,400 North Carolina residents who applied for a $2 million settlement with SunTrust Banks over mortgage missteps, Attorney General Roy Cooper’s office said Friday.

Only about two-thirds of the approximately 2,200 people eligible for the payments applied before this past June’s deadline, Cooper’s office said. The 1,454 applicants are expected to receive checks for about $1,330.

The payments are part of a nearly $1 billion settlement announced in June 2014.

That accord involved various states and federal agencies that had accused SunTrust of mortgage origination, servicing and foreclosure abuses. Authorities cited the Atlanta bank’s conduct as an example of mortgage-underwriting failures that contributed to the 2008 financial crisis.

SunTrust, the sixth-largest bank in the Charlotte region by deposits, admitted in the settlement to a variety of missteps, including originating and underwriting federally insured mortgages that did not meet federal requirements.

SunTrust spokesman Hugh Suhr declined to comment Friday.

In addition to the cash payments, North Carolina’s portion of the settlement includes about $21.5 million in home loan modifications and forgiveness.

Of that figure, SunTrust has provided about $6.6 million in relief, according to Cooper’s office.

Cash payments mailed Friday will go to people who were wrongly foreclosed on by SunTrust, Cooper said. North Carolina homeowners who were eligible for the payments lost their homes to foreclosure over a period running from the start of 2008 to the end of 2013.

“This is welcome relief for North Carolina families who suffered foreclosures done wrong,” Cooper said in a statement Friday.

Deon Roberts: 704-358-5248, @DeonERoberts

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