By Dedrick D. Henry, Sr.
A $550 million settlement between 49 state attorneys general and SunTrust mortgage could bring up to $200 million in relief to Florida borrowers.
The three-year settlement, which was negotiated to address mortgage servicing and foreclosure abuses, is similar in terms to 2012’s National Mortgage Settlement. Florida having the highest concentrations of Sun Trust will receive 40 percent of the $500 million for mortgage relief.
SunTrust must provide particular Florida borrowers with principal reductions and other loan modifications. Over 8,000 Florida borrowers serviced by SunTrust who lost their homes to foreclosure between Jan.1, 2008 and Dec.31, 2013, will share $40 million.
SunTrust will also be responsible for paying another $10 million to the federal Government for losses it caused the Federal HOUSING Administration, Department of Veteran Affairs and the Rural Housing Service.