Attorney General Mark Herring announced that claim forms are going out today to approximately 3,050 SunTrust borrowers in Virginia who lost their homes to foreclosure between January 1, 2008 and December 31, 2013 and who may be eligible for payment under the $550 million SunTrust national mortgage foreclosure settlement. Qualified borrowers will receive a bilingual English/Spanish packet containing a letter from Attorney General Herring, instructions, answers to frequently asked questions, and a claim form that must be returned by June 4, 2015.
“This payment is intended as partial compensation for the mortgage servicers’ illegal conduct and servicing abuse, and further terms of the settlement ensure that SunTrust will abide by more rigorous standards when servicing mortgages or attempting to foreclose,” Herring said. “We will continue to work each and every day to defend the rights of Virginia consumers and to hold businesses accountable when they violate consumers’ rights.”
SunTrust agreed to a $550 million national settlement with the federal government, the Commonwealth of Virginia, 48 other states and the District of Columbia following investigations which alleged numerous violations in its servicing of mortgages and its foreclosure practices. The settlement, which was filed in June 2014 and took effect in September 2014, earmarked $40 million in payments for approximately 45,250 borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by SunTrust. The exact payment will depend upon the total number of borrowers who decide to participate.
Broad reform of the mortgage servicing process resulted from the settlement, as well as financial relief for borrowers still in their homes through direct loan modification relief, including principal reduction and refinancing underwater mortgages.
By participating, borrowers do not give up any legal rights. They many participate in this settlement and also pursue other legal remedies such as filing a lawsuit or participating in a class action, if they so choose.
Eligible Virginia borrowers should complete their claim forms and return them as soon as possible in the envelope provided, or file them online at: www.
The deadline for all claims is June 4, 2015. Payment checks are expected to be mailed in the fall of 2015.
Free claim form assistance available
The one-page claim forms are simple to complete. However, borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1-866-590-8532, or send questions by email to:
settlementadministrator@
Payment won’t stop other legal claims
Herring said eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer.
Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments that borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.
Eligible borrowers not notified should contact settlement administrator
Borrowers who believe they may qualify for a payment, but who do not receive a notice because they have moved, should contact the settlement administrator directly to provide that information:
Call toll-free: 1-866-590-8532. The line is staffed Monday through Friday from 7 a.m. to 7 p.m. Central Time.
Email: settlementadministrator@
Beware of scams
Borrowers should not need to pay anyone to file their claim. Herring warns all homeowners to be aware of settlement-related scams. Do not provide personal information or pay money to anyone who calls or emails you claiming that they are providing settlement-related assistance. If you believe someone is conducting a settlement-related scam, call Attorney General Herring’s Consumer Protection Hotline at (800) 552-9963 if calling from Virginia, or (804) 786-2042 if calling from the Richmond area or from outside Virginia.
Settlement background
The national settlement followed state and federal investigations, which alleged that SunTrust routinely signed foreclosure-related documents outside the presence of a notary public and without personal knowledge that the facts contained in the documents were correct. This civil law enforcement action also alleged that SunTrust committed widespread errors and abuses in its foreclosure processes.
For more information about eligibility and filing a claim:
- www.
NationalMortgageSettlement.com - Email: settlementadministrator@
nationalsuntrustsettlement.com - Call toll-free: 1-866-590-8532. The line is staffed Monday through Friday from 7 a.m. to 7 p.m. Central Time.
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