SunTrust Settles Loan Discrimination Suit
Posted To: MND NewsWire
Victims of discrimination on the part of SunTrust Mortgage will share in a $ 21 million settlement agreed to yesterday by the company and the Department of Justice (DOJ). SunTrust, a wholly owned subsidiary of the nation’s 11 th largest commercial bank, was accused in a lawsuit of engaging in a pattern or practice of discrimination against African-American and Hispanic borrowers. The lawsuit claimed that these qualified borrowers were charged higher prices for loans obtained between 2005 and 2009 through SunTrust Mortgage’s regional retail offices and national network of mortgage brokers. The settlement ends a two-and-a-half-year investigation by DOJ which began after a referral by the Board of Governors of the Federal Reserve to DOJ’s Civil Rights Division in December 2009. The investigation…(read more)
