SunTrust Reaches $320 Million Criminal Settlement into HAMP Practices

As much as $274 million will be available to consumers who suffered financial distress as borrowers from SunTrust Bank Inc. under the Home Affordable Modification Program.

SunTrust reached the settlement with the Department of Justice on Thursday. The DOJ said in a statement: “SunTrust made material misrepresentations and omissions to borrowers in HAMP solicitations, and failed to process HAMP applications in a timely fashion.”

In a statement, Jerome Lienhard, SunTrust Mortgage, Inc CEO acknowledged “deficiencies” in the bank’s HAMP program, adding that the settlement will allow SunTrust to continue supporting the housing recovery.

On June 17, SunTrust and DOJ reached a nearly $1 billion settlement with 49 attorneys general that the bank underwrote faulty mortgages between 2006-12.