SunTrust Banks Inc. says it has agreed to cash payments and consumer relief totaling more than $1 billion to settle claims over its handling of government-backed mortgages. The claims covered FHA-insured mortgages that the bank originated between 2006 and early 2012 and claims under a national settlement program.
A court ruling in Georgia could force those foreclosing on homes to disclose who actually owns the loan. The ruling last month said that the name of the owner of a mortgage must appear in foreclosure filings and notices sent to delinquent borrowers.
Some of the money in the state’s mortgage settlement with big banks will be paid directly to the state to be used to avoid preventable foreclosures, but there's no legal requirement in Georgia law that it be spent for any particular purpose. Some lawmakers said they want to put the money in reserves.