Abuses by mortgage companies against consumers have received much attention in the past few years, with several high-profile national settlements. Now, SunTrust Mortgage, Inc. can be added to the list of companies who have to pay consumers back for millions of wrongful gains due to abuses in mortgage servicing, mortgage origination and foreclosure.
The company recently entered into a settlement totaling over a half-billion dollars, which was approved by 49 states as well as the nation’s capital and two federal agencies. To effectuate the agreement, a consent judgment will be entered against the company in federal court.
The Ohio attorney general announced that consumers in Ohio will receive over $1.8 million dollars in benefits from that settlement in the form of loan modifications, principal reductions and refinancing.
Several hundred borrowers who lost their homes to foreclosure between 2008 and 2013 due to the company’s abuses may also be eligible to receive a small reimbursement from a national fund. The settlement also requires the company to make significant changes in its procedures to prevent the recurrence of past abuses.
This is important news, as it serves as confirmation that there are companies that engage in questionable or abusive loan standards. Homeowners can then find themselves dealing with a home they cannot afford due to financial strain or predatory lending practices.
There are so many important advantages to home ownership, and losing a home that a family has grown to know and love is a significant loss that can often be avoided. Ohio residents who find it difficult to meet their mortgage payments due to credit card, medical or other types of debt may have options available to them to prevent home foreclosure. Speaking with an attorney may be a good first step on the road to financial recovery.
Source: Norwalk Reflector, “Ohio SunTrust customers to receive $1.8 million,” June 19, 2014