HERALD-LEADER FRANKFORT BUREAU
FRANKFORT —Kentucky has joined 48 other states and the federal government in a $550 million settlement with mortgage lender and service SunTrust Mortgage, Inc., Attorney General Jack Conway said Tuesday.
The settlement will provide direct payments to Kentucky borrowers for foreclosure abuses, loan modifications and other relief for borrowers in need of assistance, new mortgage servicing standards and grants oversight authority to an independent monitor, said Conway.
“This settlement holds a major mortgage servicer accountable for its unacceptable past practices, and it provides direct relief to Kentucky borrowers,” Conway said. “Additionally, SunTrust must treat its borrowers much more fairly because of the settlement’s tough servicing standards.”
About 265 eligible Kentucky borrowers whose loans were serviced by SunTrust and who lost their home to foreclosure from Jan. 1, 2008 through Dec. 31, 2013 and encountered servicing abuse will be eligible for a payment from the national $40 million fund for payments to borrowers. The borrower payment amount will depend on how many borrowers file claims.
Eligible borrowers will be contacted about how to qualify for payments, said Conway.
More information about the loan modification process will be released at a later date, though current borrowers with loans serviced by SunTrust can contact the company directly with questions at 1-800-634-7928.
SunTrust, headquartered in Richmond, Virginia, is a wholly-owned subsidiary of SunTrust Banks, Inc., a bank and financial services company headquartered in Atlanta, Ga.
Filed Under: State Government