SunTrust settles some mortgage claims with regulators

Thu Oct 10, 2013 5:19pm EDT

Oct 10 (Reuters) - SunTrust Banks Inc said it settled some claims related to government agency-backed mortgage loans and would take a related charge of $323 million in the third quarter.

The bank said on Thursday it reached agreements with the U.S. Department of Housing and Urban Development and the Department of Justice to settle mortgage origination claims and its portion of the national mortgage servicing settlement.

SunTrust's commitment under the agreements includes a payment of $500 million to consumers and a cash payment of $468 million, the bank said in a statement.

Shares of SunTrust, which is scheduled to report third-quarter results on Oct. 18 , closed at $33.35 on Thursday on the New York Stock Exchange.

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