Clients of Virginia-based SunTrust Mortgage may be eligible for compensation thanks to legal action taken by State Attorney General Bob Ferguson and officials in 49 other states and the District of Columbia.
Ferguson’s office announced this week that Washington homeowners will share in $550 million secured for borrowers nationwide.
The legal action addresses mortgage initiation, servicing and foreclosure abuses by SunTrust. Washington borrowers comprise 744 of the company’s 48,223 foreclosures from 2008 through 2013, Ferguson’s office said in a release.
The three-year agreement provides $3 million in direct payments to Washington borrowers for past foreclosure abuses, loan modifications and other relief.
It also provides new mortgage servicing standards.
“The monetary payments and other adjustments will help to address unacceptable past practices, and tough new servicing standards will hold SunTrust accountable in the future,” Ferguson stated.
Under the agreement, SunTrust must provide certain Washington borrowers with loan modifications or other relief. The company will be able to choose from an extensive list of options, including principal reductions and refinancing for underwater mortgages.
The payment amount to borrowers will depend on how many borrowers file claims. Eligible borrowers will be contacted about how to qualify for payments.
Among the new standards, SunTrust has agreed to:
• Make foreclosure a last resort.
• Restrict foreclosure while a borrowers is being considered for a loan modification.
• Give homeowners the right to appeal denials.
• Provide a single point of contact for borrowers seeking information.
Current borrowers with questions, and with loans serviced by SunTrust, may contact the company directly at 800-634-7928.