June 17, 2014

Connecticut has joined with the federal government, 48 other states and the District of Columbia in a $550 million settlement with mortgage lender and servicer SunTrust that resolves origination, servicing and foreclosure abuses, Attorney General George Jepsen announced today.

The three-year settlement will provide direct payments to certain borrowers for past foreclosure abuses as well as loan modifications and other relief for borrowers in need of assistance. The settlement includes tough new mortgage servicing standards for SunTrust and grants oversight authority to an independent monitor.

"This settlement with SunTrust continues the important work of the 2012 National Mortgage Settlement, which has helped thousands of struggling homeowners in Connecticut, and the settlement reached last year with mortgage servicer Ocwen," said Attorney General Jepsen. "While we cannot prevent every home foreclosure, attorneys general from across the country – in partnership with the federal government – continue to hold servicers accountable and to provide relief to families wherever possible."

Approximately 150 foreclosed Connecticut borrowers may qualify for a cash payment through this settlement. Eligible borrowers will be contacted with information about how to qualify. While more information will be made available as the settlement programs are implemented, current borrowers can contact SunTrust by phone at 1-800-634-7928 or by email through the "Support" page at www.SunTrustMortgage.com  with questions about principal reductions and the loan modification process.

Attorney General Jepsen served as a member of the negotiating committee for this settlement. He also served as a member of the executive committee for the National Mortgage Settlement, a three-year agreement reached in 2012 with the attorneys general of 49 states and the District of Columbia, the federal government and five mortgage servicers. The National Mortgage Settlement provided more than $51 billion in relief to distressed homeowners nationwide, including approximately $450 million in benefits to nearly 6,300 Connecticut borrowers.

All banks continue to offer loan modifications and other relief to qualified customers. The Attorney General encouraged any Connecticut homeowner having difficulty with their mortgage to call the state Department of Banking’s Foreclosure Assistance Hotline at 1-877-472-8313 to learn about state and federal help available. They should also contact their loan servicers to discuss the possibility of achieving an affordable loan modification.

Assistant Attorney General Joseph Chambers and Matthew Budzik, head of the Finance Department, are assisting the Attorney General with this matter.

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