PORTLAND, Maine — Attorney General Janet Mills announced Wednesday that about 185 Maine mortgage-holders could be eligible for loan modifications and compensation from a $40 million fund made available through a national settlement with SunTrust Mortgage Inc.
Mills announced in a statement that the funds come from a $550 million settlement between the company, three federal agencies and 48 states. The company, based in Richmond, Virginia, faced allegations related to its mortgage origination, servicing and foreclosure practices.
The attorney general’s office estimates around 185 Mainers had mortgage loans serviced by SunTrust and lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2013. The settlement also requires that the company provide loan modifications to certain mortgage-holders.
Federal and state officials in the joint settlement said that terms of the agreement will prevent a recurrence of past foreclosure abuses, including the practice of hastily processing foreclosure documents known as robo-signing.
Mills’ office said eligible mortgage-holders will be contacted about qualifying for payments from the $40 million national fund.
The settlement was pursued by the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau, 48 states and the District of Columbia.