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TOPEKA, Kan. (AP) — Attorney General Derek Schmidt says more than 300 Kansas consumers will be eligible for payments under a settlement between 48 states, the federal government and SunTrust.
The U.S. Justice Department said Tuesday the $968 million settlement resolves allegations that SunTrust underwrote and provided faulty mortgage loans. The federal government accused SunTrust of giving borrowers false and misleading information and charging unauthorized fees.
The agreement is with SunTrust Mortgage, a Virginia-based mortgage lender and subsidiary of SunTrust Banks Inc.
Schmidt says his office is still investigating improper conduct by mortgage servicers, but the settlement is a step toward "holding servicers accountable" and repaying Kansas consumers for damage done.
The settlement administrator will contact consumers who are eligible for cash payments, but they may also contact SunTrust directly.