Another Settlement With Provisions For Homeowner Relief... But Do They Really Deliver Anything?

driftwood

LoanSafe Member
Sep 17, 2012
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It appears that SunTrust has now settled for $1B which includes $500M to be paid in "homeowner relief". I put that in quotes purposely because well I am skeptic. I have a different take on these settlements. These lenders know regulators need to show headlines that they are being punished so its likely the regulators wont let up until they get something. Lenders are sitting on good size portfolio of bad performing loans, arguably some might say that isn't quite a big anymore but again I am not so sure we really know the size.

In either case these "settlements" are actually a win for lenders in my humble opinion. I'd bet SunTrust is sitting an amount close to $500M in loans that are charged off, close to it, noncollectable due to BK or any other of reasons why they are pretty certain they wont collect them.

So SunTrust and others that have settled get to CLEAR their books of these loans under the guise of regulatory settlement. They likely would only collect a small percentage of these loans ANYWAY! But now they get to take credit for providing "relief". Regulators look like they are doing something and the lender can say sorry, we paid for the mistake now lets move on. But did they really pay for their mistake? I dont see it that way.



http://abcnews.go.com/Politics/wireStory/us-suntrust-announce-1b-settlement-24181365

SunTrust has agreed to pay nearly $1 billion to resolve allegations that it underwrote and endorsed faulty mortgage loans, the Justice Department announced Tuesday.

The $968 million settlement, reached with the 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.

In announcing the agreement, authorities said SunTrust Mortgage, a Richmond, Virginia-based mortgage lender and subsidiary of SunTrust Banks Inc., originated and underwrote bad loans between 2006 and 2012, gave borrowers false and misleading information about the status of foreclosure proceedings and charged unauthorized fees.

The company's own internal documents showed an awareness of the problem, the government alleged, with one 2012 report referencing a "broken loan origination process."


Read the linked article for more...
 

Moe Bedard

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You make some great points. I guess we can add TARP bailout billions on top of that and we begin to see a clear picture of our banking and tax realities.

We have seen many settlements over the years. Billions upon billions of dollars. But what has been the over all benefit to homeowners in the loan modification trenches? I believe that there are more people getting help than before the settlements, and the numbers of people needing help seem to be less.

However today I still see many of the same problems by the same mortgage servicers who have already settled for billions. Just a new round of homeowners that are just less in numbers.
 
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pennygram

working for consumers
Sep 29, 2010
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The national mortgage settlement should be a lesson to all homeowners that these programs are not designed to help you - sending a $300, $600 or $2500 check to homeowners whose homes have been stolen - I guess I missed the help part in that!
 

val4747

LoanSafe Member
Jan 5, 2010
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Amen. My check was 300.00. It didn't even cover my postage, and faxes through out the years. I couldn't even cash it at one of their banks. It just sad that the American people believe all the BS. LOLOLOLOLOLOL I laugh because it relieves the stress. And because it is so frickin funny.
 

pennygram

working for consumers
Sep 29, 2010
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We sued the mortgage company, proved our case and we rec'd $600.... makes no sense... I do everything I can here locally to help people sue, help people not pay their creditor bills, help people fight back...

I can say over the last 8 years they have spent more money fighting than they will ever make off me...
 

juskilentime

LoanSafe Member
Aug 31, 2008
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As part of that settlement, I received an unsolicited USPS priority letter on Friday from Suntrust forgiving the full 2nd mortgage and releasing the lien of $65k. They did a HAMP mod five years ago (when I found this forum) and reduced the interest rate and extended the term to 40 years on the home equity loan. I've remained current and BAM the letter. Probably not underwater any longer now. Loansafe has been the best.
 
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RRva99

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Jul 9, 2009
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Has anyone actually received any $ from SunTrust under the settlement yet? I have been checking their site & all I've received is one email that announced the settlement and the site says they hope to send out award notices in the 1st quarter of 2015 (which ends in a little over 2 weeks).

Edit: I think I'm posting under the wrong SunTrust mortgage settlement thread--I intended to specifically ask about the HAMP settlement.
 
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hammerhead

LoanSafe Member
Jan 9, 2010
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Has anyone actually received any $ from SunTrust under the settlement yet? I have been checking their site & all I've received is one email that announced the settlement and the site says they hope to send out award notices in the 1st quarter of 2015 (which ends in a little over 2 weeks).

Edit: I think I'm posting under the wrong SunTrust mortgage settlement thread--I intended to specifically ask about the HAMP settlement.
i received a letter stating i qualify for 10,800 under 4 categories i checked my paperwork and it matches every thing they did to me so we will see if they come through
 

Maryen65

LoanSafe Member
Apr 26, 2010
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I received our Settlement letter today (HAMP Settlement) and both my husband and I are awarded $6,700 each in 3 categories: 1. Improper Credit Reporting 2. Excessive Capitalized Arrearage 3B. Extended HAMP Trail-received HAMP. It says to sign form and return by July 21, 2015. I will keep you all posted-keeping my fingers crossed it is the real deal. The biggest issued I would like cleared up and really feel mistreated on is that our HAMP trail period lasted for 17 months and they rep0rted our payment as late during the entire time and despite all my attempts to have them repair our credit report, they have done nothing.
 

Maryen65

LoanSafe Member
Apr 26, 2010
25
0
1
Has anyone actually received any $ from SunTrust under the settlement yet? I have been checking their site & all I've received is one email that announced the settlement and the site says they hope to send out award notices in the 1st quarter of 2015 (which ends in a little over 2 weeks).

Edit: I think I'm posting under the wrong SunTrust mortgage settlement thread--I intended to specifically ask about the HAMP settlement.
I remember you from years ago! We were both going through HAMP together. Did you receive you paperwork yet for the HAMP Settlement? We just received ours today. This site was my lifeline back then.
 

Jengle

LoanSafe Member
May 16, 2015
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Has anyone received their settlement yet? I was wondering if taxes are taken out or will we get something at the end of the year to file taxes with?
 

treyy

LoanSafe Member
Nov 20, 2009
147
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It sounds like a reunion here, I got the letters as well. My wife and I got separate ones. I also have the option to check an additional box to have them review the loan and potentially offer us around $2,500 or more each on top of the $8,500/each we are supposed to get.

I wonder if I am opening up a can of worms by checking that box? This all sounds too good to be true but is obviously legitimate.
 

treyy

LoanSafe Member
Nov 20, 2009
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Justkilentime, hey there. No they didn't sell off my loan, they actually had bought my loan from the place that originally fulfilled and serviced my loan. Anyway I'm filling out the paperwork tonight and going to mail it tomorrow, we'll see what happens.
 

treyy

LoanSafe Member
Nov 20, 2009
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For what it's worth to anyone else that finds this thread, I did contact Suntrust customer service directly today and they did validate that the settlement does indeed exist and they verified the web site address regarding information that matched the letter I received.
 

RRva99

LoanSafe Member
Jul 9, 2009
253
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Wow, we've managed to get the whole gang back together. I'm glad everyone has been successful through this process, we all deserve it after the nightmare they put us through! I got my checks two days ago, wife & I got $5,700 each, so $11,400 for the extended trial & dinging our credit during the process.

Jengle, I don't think that legal settlements of this nature are taxable as income (I'm not a CPA).
 
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Survivor_IN

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Jun 2, 2008
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Wow. I'm amazed at the reporting of people here receiving contact and settlement!

I've been in two of these, maybe 3, quaulifed according to reported gov website info... and got zip. Didn't even get the minimum $300 relief, which could have at least reimbursed me for (most of) the cost of faxing hamp papers about 10 times.