A class action filed on April 4 alleges that SunTrust Mortgage Inc. unlawfully collected millions of dollars from consumers in “post-payment” interest. Post-payment interest is, according to the complaint, “interest that a lender collects after the borrower has paid the full unpaid principal of the loan,” typically for the remainder of the month after the loan balance is paid.
In essence, instead of pro-rating the monthly interest to the actual date of the final loan payment, the complaint alleges that SunTrust collected that full month of interest in violation of governmental regulation. The class action claims that lenders make on average a few hundred dollars per loan, which amounts to hundreds of millions of dollars in post-payment interest every year.
SunTrust Mortgage provides loans for houses, some of which are backed by the Federal Housing Administration (FHA), a federal agency that provides mortgage insurance to lenders as an incentive for home buying. The class action states that when a lender such as SunTrust provides a mortgage that is insured through FHA, the lender must adhere to FHA regulations about the mortgage. One of the provisions required by the FHA is that a lender cannot collect post-payment interest unless they provide a specific disclosure of that practice to the borrower.
The class action notes that it’s unlawful to collect post-payment interest on many government-backed loans, such as Fannie Mae and Freddie Mac. “This makes sense,” argues the class action, because “by definition, interest is calculated from the amount of the outstanding principal loaned by the lender to the borrower.”
If the loan is paid off, then interest should not accrue, the complaint contends. Furthermore, FHA loans issued after Jan. 20, 2015, cannot charge post-payment interest. Lenders could only charge post-payment interest on FHA-insured loans issued between Aug. 1, 1985 and Jan. 20, 2015, and then only if they provide the proper disclosure.
The SunTrust Mortgage illegal interest class action lawsuit alleges that SunTrust did not provide the required disclosure before charging post-payment interest to its borrowers. The complaint accuses SunTrust of using its own form that is misleading to consumers and in violation of federal regulation.
Plaintiff Sarah Felix states that she received a mortgage loan from SunTrust with mortgage insurance provided by FHA. Felix claims that she sold her home in 2015, and part of the sale included paying off the mortgage. When she requested a statement detailing the balance of her loan, SunTrust provided a statement with the unpaid balance, an interest payment for the entire month and a “total amount due to pay loan in full” that included the full interest amount, even though the statement was dated on the 6th of the month. Felix asserts that she paid that full amount two days later, which included the interest for the entire month. Felix also claims that SunTrust did not provide the FHA disclosure statement to her.
Felix seeks to represent a Class of all persons who had a FHA-insured loan issued between Aug. 1, 1985, and Jan. 20, 2015, who were charged post-payment interest by SunTrust Mortgage.
The plaintiff is represented by Naveen Ramachandrappa and Steven J. Rosenwasser of Bondurant, Mixson & Elmore; Adam Hoipkemier and Matthew Wetherington of The Werner Law Firm; and Jeffrey W. DeLoach and Kevin E. Epps of Fortson, Bentley and Griffin.
The Suntrust Mortgage Illegal Interest Class Action Lawsuit is Sarah Felix, et al. v. Suntrust Mortgage Inc., Case No. 2:16-cv-00066, in the U.S. District Court for the Northern District of Georgia, Gainesville Division.
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24 thoughts onSunTrust Mortgage Class Action Says Collection of Interest Illegal
Laurie. Poirier
Yes. Had. Suncrest 2009 when. Selling. Our. Home billed. Me another payment whem. House. Was. Sold need. Help riuned. My. Credit when they got. Paid. In. Full please help
My complaint does not involve any past Suntrust Settlements or suits, whatsoever. I’m not looking for a settlement or a refund… Its my money.
SunTrust Violation
Hi its Dee again… Denied from SunTrust Mortgage Escolation Resolutions Team. Complaint unanswered, no contact info or signature. I have evidence no one will review.
We offer a submission form on our website for you to fill out if you are seeking class action legal help. Attorneys will then review your submission to determine if you have a case. If they feel you qualify, they will contact you directly. You can submit your information here: https://topclassactions.com/start-a-class-action/.
Are you kidding me? I’m done playing this game. I will continue this fight against Suntrust. Do not insult my intelligence by falsifying information for me to file another complaint on your website. Just comply. Thanks Dee
We wish you the best of luck in your pursuit of justice!
Dear Class Action, With regards to Claim ID SCC2017K-00243-0 I have completed & confirmed all filings, emails, calls, faxes and mailed, I delivered prompt accurate detailed documents as requested by the Financial Institution in Control, CFPB ID 170622-2188227 received, documented and forwarded the material stated all future correspondents must be summited to The Federal Insurance Deposit Corp & Division of Depositor Consumer Protection. Suntrust and their Invested Partners. Fannie Mae Investors #1704418113/ Case 000491221.JPMorgan Chase 0024832123, FDIC, Federal Government Trade Commissions, US Government Treasury did respond in a timely manner. Unfortunately, there has been no resolution, or response. I brought these facts to Beatriz Reyna- Villazana Consumer Protection Division, .Attorney General state of Illinois has been reaching the complaints against Suntrust Bank & Suntrust Mortgage Inc,
Any advice
Scroll down to my comment on January 10, 2018
Suntrust Mortgage Inc & HAMP Fannie Mae STOLE my home $$$ credit. I’ve been disputing the mishandling of all Finanacal institutions. 2012 writing return receipt requests, 5 face to face complaint to different Suntrust Banks
Finally I have legal docs proving all payments that were not applied, causing Forclosure. I received the docs AFTER I lost my home + $93,000. I can’t take the abuse anymore, I’m falling. I am devastated & this is making me sick. Someone / Anyone please help me…
Hi its Dee, SunTrust Mortgage Escolation Resolution Team. Richmond VA. Facts: Tony Brown & Side-Kick Nichole Harrington have the easiest job created by SunTrust Resolutions. Just Hang-Up on their customers. Don’t bother calling back their Pro’s..Recient pile of Documents are not Dated, Signatures. I compared the exact legal docs.. These are all “Copied Cut & Altered Forged” SunTrust Hamp Settlement who received a check, look closely & you will find Nichole Harrington’s hand written signature! SunTrust illegally controlled their own settlement funds. I want to know where the Millions & Billions are secretly hidden. Dee
SunTrust, Pray your children will not be victimized by The Financial Intuitions who can willingly steal their hard earned savings used to finance their homes. Watch homes
If this was just filed in April…. we just recd a check. What’s Up?
We just received a check today, too. I was wondering the same thing.
This was written April 6th, 2016
There’s 3 important facts in life #1 DONT MESS WITH MY CHILDREN. #2 DONT MESS WITH MY MONEY. #3 DONT EVER GIVE UP..Dee
SunTrust Mortgage is as Mr. Todd Schmidt stated a company that ruins lives. I, too, was dealt a blow by this mortgage company when their representative conspired with the seller to up the price $2000 behind my back which led to them trying to set up a 2nd closing and of course, the seller would not agree to it. It was reported and they were found guilty of horrible practices and were put on notice that if this practice happened again SunTrust would be sanctioned. How do I file a claim? These people took the joy of me purchasing my first home! Also, I, too was charged inappropriate amount to pay off the principal adding the post payment interest. Tell me how to file a claim. I want them to pay for what they’ve done. Thank you!!!!!!!!!!!!
Shelia, Have you been able to recover momentary compensation from Suntrust?
Hi Deirdre. Sorry to say, I have not recovered monetary compensation. However, I most definitely filed criminal charges with my local police which got their attention in a heartbeat. Never to be taken by Suntrust again, I refinance my mortgage which paid off SunTrust and do business elsewhere.
SunTrust ruined my life 2008-1013, $40,000 later and 5-attorneys they broke into home and now still I get IRS Forms showing they are receiving FHA payments 2+years AFTER they stole my home. Its ID Theft, RICO ACT FRAUD, False Claims Act fraud, insurance fraud! I need great attorneys to stifle SunTrust. They ignored my January 2010 “Notice of TILA Recission” and its 20-days federal law limits and filed a foreclosure on 3-10-2010: I want my property, life (and recompense) all back.
we just received a check in the amount of six dollars on April 8,2017. so unreal.
Orene, Have you recovered more than $6 bucks from Suntrust?
Todd Schmidt, what was the out-come of your dispute?