Mortgage Daily Logo
mortgage news from industry experts

HUD Investigating SunTrust

An investigation has been launched into SunTrust Banks Inc.’s origination practices on loans insured by the Federal Housing Administration. Word of the investigation comes on the heels of a lending discrimination settlement and seems to shed light on a recent executive recruiting decision.

The Atlanta-based company disclosed that an investigation has been commenced by the Department of Housing and Urban Development.

SunTrust received notice of HUD’s investigation on April 25.

At issue are the mortgage lender’s origination practices for FHA-insured loans, according to the Form 10-Q filing with the Securities and Exchange Commission.

“The company is cooperating with the investigation,” the filing stated.

Given the disclosure of the investigation, the May 30 announcement from SunTrust that it would bring on former Federal Housing Commissioner David H. Stevens as president of SunTrust Mortgage makes more sense.

Stevens subsequently backed out of the deal to stay on as the president and chief executive officer of the Mortgage Bankers Association.

SunTrust Mortgage Inc. recently agreed to pay $21 million to the Department of Justice to settle charges of discrimination on loans originated between 2005 and 2009.

The Justice Department’s complaint alleged violations of the Fair Housing Act and Equal Credit Opportunity Act by charging 20,000 black and Hispanic borrowers higher fees and interest rates than similarly situated white borrowers.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts