SunTrust To Pay $968M To Settle Improper Loan Claims

SunTrust Banks, Inc. (NYSE:STI) agreed to pay nearly $1 billion to settle a U.S. federal probe into allegations of mortgage origination, servicing and foreclosure abuses. The U.S. Justice Department announced the pact Tuesday and the settlement involves 49 state attorneys general and several federal agencies. Details of SunTrust settlement The 14th largest U.S. mortgage lender by origination volume agreed to pay a $418 million penalty and admitted it didn’t comply with lending standards mandated for loans insured by the Federal Housing Administration. The Justice Department cited internal SunTrust Banks, Inc. (NYSE:STI) documents that show the bank’s managers were aware of…