When Unites States was affected by global economic recession from 2007 to 2009, housing bubble burst. Many people lost their jobs during the crisis. It badly influenced housing price, which took sharp downturn during that period. Homeowners suddenly found themselves in a difficult position. They had troubles making monthly payments while selling the house was no longer an option since the market’s demand was at its lowest. Foreclosures of the mortgaged properties increased dramatically within that time period. Government issued collateral damage by proposing loan modification program that was adapted by SunTrust, resulting in the company’s crisis later. SunTrust Mortgage settlement administrator was appointed to help solving this issue.
The Case of SunTrust Mortgage
To resolve increasing number of foreclosures, the mortgage company adapted Home Affordable Modification Program or HAMP that was suggested by government. It had an objective to assist homeowners who had troubles in making installments for their loans by modifying the programs into more affordable and sustainable ones. However it did not exactly work as it supposed to and the matter was later brought into court. Court then appointed SunTrust Mortgage settlement administrator to resolve it.
SunTrust Mortgage settlement administrator helped homeowners who were allegedly mistreated by this mortgage company during the time of crisis. HAMP was not handled well at that time. Homeowners did not receive adequate information related to the program and when they did, it was often misleading. The company also took a long time to review homeowner’s information. This program did not yield expected result as it actually increased foreclosures rate, leaving many homeowners in deep grievance.
Court leaving the operational proceeding of its decision to SunTrust Mortgage settlement administrator. The mortgage company was mandated to pay around $500 million. About $40 million from that amount was directly distributed to homeowners whose houses were foreclosed during that time period. Each person would receive check around $1,130. The company was required to submit semi-annual documents to make sure that it adhered to settlement regulation.
Homeowners who are eligible to receive payments by the company must fulfill certain requirements before contacting SunTrust Mortgage settlement administrator. The mortgage loan must be serviced by this company when foreclosure sale happened, which should be from January 1, 2008 to December 31, 2013. Homeowner must had made at the very least three payments to this mortgage company before foreclosure happened. Foreclosed property should be homeowner’s primary residence. There was principal balance limit that differed between one-unit to four-unit property which needed to be adhered to.
Homeowner who could fulfill those above requirements was then asked to SunTrust Mortgage settlement administrator. It was contactable through phone number at 1-866-459-3633. Homeowner could also send email to email@example.com. Notice was sent to homeowners who were eligible for payment on March 2015. Homeowner then must hurry to fill claim form maximum at June 4, 2015.
It was a quiet difficult time for the company and homeowners. SunTrust Mortgage settlement administrator had successfully distributed payments to eligible homeowners. Since then the company has learned its lessons and begin taking off again in mortgage business.