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SunTrust settlement to bring $33 million to Maryland

SunTrust settlement to bring $33 million to Maryland

Maryland will receive $33 million from a nearly $1 billion joint state-federal settlement reached with SunTrust Mortgage Inc. over past problems with its mortgage servicing and foreclosure procedures, the Maryland Attorney General's office announced Tuesday.

The money is supposed to provide funding for loan modifications and other forms of relief over a three-year period. The state also expects about 1,200 Maryland borrowers to be eligible to apply for a one-time payment from a $40 million national fund. The fund is for borrowers whose loans were serviced by SunTrust and lost their homes to foreclosure between 2008 and 2013.

Maryland is due to receive the third largest...