SunTrust Settles YSP Lawsuit
$21 million settlement over charges of discrimination
June 1, 2012
A lawsuit filed by the government against SunTrust Mortgage Inc. alleging that its retail originators and mortgage brokers increased pricing to minorities has been settled for $21 million.
At issue are alleged violations of the Fair Housing Act and the Equal Credit Opportunity Act on 20,000 mortgages to black and Hispanic borrowers originated between 2005 and 2009.
Brokers and originators were allegedly paid yield spread premiums for up-selling interest rates.
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