Some state borrowers will receive portion of national settlement
PIERRE, S.D. (AP) - More than 100 South Dakota borrowers will be eligible to receive a small portion of a nearly $1 billion settlement that a Virginia-based company has agreed to with the federal government in order to resolve allegations that it provided risky mortgage loans.
South Dakota Attorney General Marty Jackley says borrowers in the state who lost their home to foreclosure between 2008 and 2013 and encountered servicing abuse from SunTrust Mortgage will be eligible for a payment.
U.S. Attorney General Eric Holder says SunTrust's conduct is a "prime example" of the widespread underwriting failures that helped bring about the recent financial crisis.
As part of the deal reached this week SunTrust has agreed to provide $500 million in homeowner relief and $418 million to resolve allegations that it underwrote bad loans.