SunTrust, a mortgage lender and servicer, has agreed to pay nearly $1 billion to resolve allegations that it underwrote and endorsed faulty mortgage loans, according to government officials. Connecticut, 48 other states and the District of Columbia will share $550 million, according to state Attorney General George Jepsen.
The $968 million settlement, reached with the U.S. Justice Department and other government agencies, will include money for homeowner relief and a requirement that the company improve its handling of mortgage loans and foreclosures. Approximately 150 Connecticut borrowers whose homes were foreclosed on may qualify for a cash payment. Eligible borrowers will be contacted with information about how to qualify.
