More than 300 Wis. residents could benefit from mortgage settlement

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Hundreds of Wisconsin residents who may have been misled by mortgage lender SunTrust Mortgage Inc. will receive part of a $550 million settlement, according to a news release from Attorney General J.B. Van Hollen’s office Tuesday.

The settlement between the lender, the U.S. Department of Justice and the Department of Housing and Urban Development and will be entered into federal court in Washington, D.C. It will affect residents in 49 states and the District of Columbia, according to the release.

The settlement could affect up to 321 Wisconsin residents who had SunTrust loans and lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2013, according to the release. SunTrust will decide which consumers will receive part of the settlement.

Under the terms of the settlement, SunTrust will be watched by an independent monitor and will have to adhere to new mortgage servicing standards.

According to the release, the settlement is similar to the 212 National Mortgage Settlement, through which state residents have received more than $197 million in benefits, and nationwide consumers have received more than $50 billion. Follow @eheisigWLJ