Joseph Smith, monitor of the National Mortgage Settlement, reported to the United States District Court for the District of Columbia that SunTrust fulfilled 69% of its consumer relief obligation.
In fact, nearly all of the mortgage servicers that are subject to the terms of the National Mortgage Settlement achieved complete compliance with the NMS’s servicing rules in the first half of 2015, according to a report from Smith.
SunTrust provided 16,921 borrowers with $370,474,005 in consumer relief through the first half of 2015.
In addition, Smith reported that the company passed all borrower treatment tests during the second half of 2015.
“SunTrust has completed 69% of its consumer relief obligation and did not fail any of its tests on borrower treatment during the second half of 2015,” said Smith. “I will continue to monitor SunTrust’s compliance with the NMS and I will report my findings to the Court and the public later this year.”
Under the settlement, the company must pay $475 million in consumer relief credit to distressed borrowers and establish a mortgage origination program by September 30, 2017.
By the same date, the company must also pay $25 million in consumer relief credit by refinancing mortgages of borrowers who would not otherwise qualify for refinancing.
Originally, The U.S. Department of Housing and Urban Development, the U.S. Department of Justice, the Consumer Financial Protection Bureau and attorneys general in 49 states and the District of Columbia announced a $968 million mortgage origination settlement with SunTrust to cover mortgage servicing and foreclosure abuses.
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(Source: Office of Mortgage Settlement Oversight)
