Atlanta-based SunTrust Banks Inc. has informed employees that it will cut 800 positions in its mortgage business. The bank joins others in a trend that's led to lost jobs as mortgage interest rates rise and fewer homeowners refinance their loans.
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.
Atlanta-based SunTrust bank has bought nearly $11 million of government-owned stock warrants that were part of the federal TARP program. The bank repaid $5 billion in federal aid in March, which covered the government’s preferred stock holdings. Thursday’s buyback is for a portion of the common stock warrants held by the Treasury Department.
Atlanta-based SunTrust Banks outlined Friday its plan to repay nearly $5 billion in federal aid it received during the financial bailout. SunTrust began selling $1 billion in new stock and will soon issue $1 billion in new debt to fund the repayment plan.