SunTrust Reaches Definitive Agreement On Mortgage Settlement

(RTTNews) - SunTrust Banks, Inc. (STI) said Tuesday that it has entered into a definitive agreement to settle certain legacy mortgage matters with the U.S. Department of Housing and Urban Development and the U.S. Department of Justice.

The settlement finalizes the agreements in principle announced in October 2013.

Specifically, the company settled claims related to SunTrust's origination of FHA-insured mortgages and SunTrust's portion of the National Mortgage Servicing Settlement.

As previously disclosed, SunTrust's commitment under the agreements includes consumer relief of $500 million and a cash payment of $468 million.

SunTrust said it will not incur an incremental charge relative to the financial commitments previously disclosed.