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SunTrust to pay nearly $1 billion to settle mortgage-abuse allegations
SunTrust to pay nearly $1 billion to settle mortgage-abuse allegations

A nearly $1-billion settlement with California and other state authorities as well as federal agencies will close out two major investigations into possible mortgage wrongdoing by the home-lending arm of Atlanta's SunTrust Banks Inc. The agreements announced Tuesday are the latest in a series involving banks accused of abuses in issuing home loans, handling troubled borrowers and packaging mortgages into securities for sale to investors. The settlement with SunTrust Mortgage Inc., which focuses on loan origination and customer service issues, includes relief for distressed homeowners valued at $500 million and a cash payment of $468 million. Of the cash portion, $418 million...

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