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AG Schmidt: More than 300 Kansas consumers to receive relief from SunTrust settlement

TOPEKA – (June 17, 2014) – More than 300 Kansas consumers will be eligible for relief under the terms of a settlement reached today with SunTrust, Attorney General Derek Schmidt said.

The agreement filed today in U.S. District Court for the District of Columbia provides direct payments to Kansas borrowers for past foreclosure abuses, loan modifications and other relief to borrowers in need of assistance. The settlement also includes new mortgage servicing standards and oversight authority to prevent future violations. Schmidt joined attorneys general from 48 other states, as well as the District of Columbia, U.S. Justice Department and U.S. Department of Housing and Urban Development in the settlement.

“Our office continues to investigate the improper conduct by mortgage servicers during the financial crisis,” Schmidt said. “Today’s settlement marks another step to holding servicers accountable for these unacceptable practices and repaying Kansas consumers for the damage that was done.”

The settlement resolves alleged violations in SunTrust’s foreclosure practices, such as robo-signing, improper documentation and lost paperwork. SunTrust is required to substantially change its mortgage servicing and foreclosure practices to prevent future abuses.

Compliance with the settlement will be overseen by the National Mortgage Settlement monitor Joseph A. Smith, Jr. Consumers who are eligible for the cash payments will be contacted by the settlement administrator but may also contact SunTrust directly for more information. Current borrowers whose loans are serviced by SunTrust should call (800) 634-7928.

More information on this settlement and the National Mortgage Settlement is available on the Attorney General’s Consumer Protection website at www.InYourCornerKansas.org.