Complaint Review: SunTrust Mortgage Inc.

Subject:          Fraud and Embezzlement Committed by SunTrust Mortgage, Inc.

                        Loan #XXXX5224

                        Fort Myers, FL

I am writing this letter seeking your assistance in resolving the issue of fraud and embezzlement described herein committed by SunTrust Mortgage, Inc.

Background:

            In the fall of 2004 I purchased a condominium in Fort Myers, FL, through a mortgage extended to me by SunTrust Mortgage, Inc. The purchase price for my condominium was $131,000 of which I put a >25% down payment as I was then unemployed having just relocated to FL. Since that time I have always made mortgage payments on time, never missing any commitment to make payment on the mortgage with SunTrust Mortgage, Inc. As of December, 2010, I have a mortgage principal balance of approximately $80,000. Even though the current market value of my condominium is between $50,000 and $65,000, I am committed to continue to make mortgage payments on time. Note that this letter is not about SunTrust Mortgage, Inc. not supporting mortgage holders by processing loan modifications. The internet is overcome with consumer complaints from mortgage holders about SunTrust Mortgage, Inc. avoiding support of any kind to help mortgage holders by modifying loans. What this letter is about is fraud and embezzlement committed by SunTrust Mortgage, Inc. on my loan related to flood insurance. Outlined below is a history of the events leading up to the writing of this complaint letter.

History of fraud and embezzlement committed by SunTrust Mortgage, Inc.:

-       In October of 2010 I received notification from SunTrust Mortgage, Inc. stating that they did not have record of receiving a flood insurance policy covering my condominium. Since 2004, I have received similar letters from SunTrust Mortgage, Inc. about flood insurance. As in the past, I immediately contacted the property manager (Martin Management Services, Inc) for my condominium home owners association and requested that a Certificate of Flood Insurance be faxed to SunTrust Mortgage, Inc. referencing my name, the property address, and mortgage loan number. This information was faxed to SunTrust Mortgage, Inc. Insurance Verification department on October 22, 2010 (See Exhibits A). The terms of the home owner association flood insurance policy exceeded the requirements that SunTrust Mortgage, Inc. outlined for flood insurance. No communication or confirmation was provided by SunTrust Mortgage, Inc. to me that a Certificate of Flood Insurance had been received for my property and mortgage.

-       On November 23rd, 2010 I received another letter dated November 16, 2010 from SunTrust Mortgage, Inc. stating that they did not have record of receiving a flood insurance policy covering my condominium (See Exhibits B). I immediately called the SunTrust Mortgage, Inc. Insurance Verification department at the contact phone number shown in the letter and spoke to Ms. Kelly about this issue. Ms. Kelly claimed that the department had not received a Certificate of Flood Insurance for my property. As I do not have immediate access to a fax machine, and as Ms. Kelly claimed that she could not receive email, Ms. Kelly agreed to contact State Farm Fire and Casualty Company who issued the policy to my home owner association for flood insurance. I asked Ms. Kelly to call me back after she got the information to confirm that it met the flood insurance requirements of SunTrust Mortgage, Inc.  Ms. Kelly agreed to call me back, but never did.

-       On November 30, 2010 I called the SunTrust Mortgage, Inc. Insurance Verification department at the contact phone number shown in the letter and spoke to Mr. Bill Thompson. Mr. Thompson claimed having direct access to a State Farm Fire and Casualty Company website that referenced the flood insurance policy in effect for my condominium and confirmed that the policy exceeded the requirements that SunTrust Mortgage, Inc. outlined for flood insurance. However, Mr. Thompson requested that I still mail a copy of the Certificate of Flood Insurance to the SunTrust Mortgage, Inc. Insurance Verification department at the contact address shown in their letter to me. I did so (see Exhibit C). Mr. Thompson claimed to me that no further actions were required on my part and that the SunTrust Mortgage, Inc. requirements for flood insurance had been fully complied with.

-       In early December 2010, I received a threatening letter from SunTrust Mortgage, Inc. stating that a flood insurance policy would be purchased by them on my behalf if adequate proof of flood insurance was not provided by me to the SunTrust Mortgage, Inc. Insurance Verification department. Due to the timing of this letter and my conversation with Mr. Thompson on November 30, 2010, I assumed that records had not been fully updated within SunTrust Mortgage, Inc. showing that adequate flood insurance for my condominium was in effect. Then on December 15, 2010, I received a Flood Insurance Lender Placed policy Cover Letter and Insurance Policy from SunTrust Mortgage, Inc. (see Exhibits D). The notification letter was dated December 8, 2010. The policy premium was $3,225 and was issued through QBE Specialty Insurance Company, headquartered in Bismarck, ND. On December 16, 2010 I again called the SunTrust Mortgage, Inc. Insurance Verification department and spoke with Mr. Najee Harris about why SunTrust Mortgage, Inc. had purchased a flood insurance policy on my behalf. After accessing my mortgage loan information, Mr. Harris confirmed that this should not have happened and that records in the SunTrust Mortgage, Inc. Insurance Verification department indicated that I had adequate proof of flood insurance. I asked that the Flood Insurance Lender Placed Policy be cancelled and that I receive some written confirmation that this had occurred. Mr. Harris stated that a letter from SunTrust Mortgage, Inc. stating that the flood insurance policy issued by SunTrust Mortgage, Inc. has been cancelled would be processed and mailed to me. Mr. Harris stated that I would receive the letter in fourteen to twenty-one days.

-       On December 16, 2010 I received another letter from SunTrust Mortgage, Inc. (see Exhibit E) stating that the Flood Insurance Lender Placed Policy has been paid through my mortgage escrow account. This fraudulent transaction committed by SunTrust Mortgage, Inc. is reflected in my online escrow account on the SunTrust Mortgage, Inc. website (see Exhibit F). I now have a negative $2,979.21 escrow balance which reflects the $3,225 embezzled by SunTrust Mortgage, Inc. for the Flood Insurance Lender Placed Policy. I again called the SunTrust Mortgage, Inc. Insurance Verification department and spoke to Mr. Clark Uhrmacher and after explaining the issues surrounding the actions of SunTrust Mortgage, Inc. requested to speak to a supervisor. I was transferred to Mr. Grant Young who claimed to be a supervisor in the SunTrust Mortgage, Inc. Insurance Verification department. Mr. Young could only confirm what Mr. Uhrmacher had already told me and indicated that it would take seven to ten days for me to get written confirmation from SunTrust Mortgage, Inc. that the Flood Insurance Lender Placed Policy had been cancelled and the $3,225 insurance premium had been credited back into my mortgage escrow account.

Note that I do not believe the action taken by SunTrust Mortgage, Inc against me is the act of a renegade department. While it is clear that incompetence exists within the SunTrust Mortgage, Inc. Insurance Verification department, as SunTrust Mortgage, Inc. is a wholly-owned subsidiary of SunTrust Bank, both companies managing billions of dollars in assets, I believe that the fraud and embezzlement done by SunTrust Mortgage, Inc. can only be a result of internal policies mandated by the boards and senior executives of both companies. In November, 2010, SunTrust Bank Chairman and CEO James M. Wells III was quoted as follows: Giving people the tools they need to move forward -- and enabling them to create a stronger financial foundation for the future through education and experience -- are both important steps in helping them take charge of their lives. Clearly Mr. Wells neglected to consider that creating a stronger financial foundation can be overcome by illegal acts done by his own company. This is clearly the case for this mortgage holder.

At this point it is quite clear how utterly incompetent SunTrust Mortgage, Inc. is in keeping accurate records for their mortgage loan holders. I am writing this letter to Federal and State Regulatory Authorities, and Consumer Advocacy Groups, with the hope of getting some attention and resolution into the actions committed by SunTrust Mortgage, Inc.  Actions of fraud and embezzlement. Based on the demonstrated practices to date by SunTrust Mortgage, Inc., I have no confidence that the actions they have taken against me will be corrected, and even if corrections are made, SunTrust Mortgage, Inc. has still committed fraud and embezzlement of my funds. Thank you for your attention in this matter.

Copies of this letter and exhibits have been sent to the following entities:

                        SunTrust Banks Inc.

                        James M. Wells III, Chairman and Chief Executive Officer

                        William H. Rogers, Jr., President and Chief Operating Officer

                        Atlanta, GA

                        SunTrust Mortgage, Inc.

                        Sterling Edmunds, Chief Executive Officer and President

                        Julie W. Andrews, Chief Financial Officer and Senior Vice President

                        Robert S. Reynolds, Executive Vice President and Consumer Banking Asset Manager

                        Richmond, VA

                        Grant Young, Insurance Verification Department Supervisor

                        Irvine, CA

                        Jeff Brown, Vice President Residential Loan Officer

                        Fort Myers, Fl

                        RipOffReport.com

Federal Trade Commission

Washington, D.C.

Board of Governors of the Federal Reserve System Division of Consumer

And Community Affairs

Washington, DC

Federal Deposit Insurance Corporation Consumer Response Center

Kansas City, MO

Offices of Attorney Generals

CT, VA, FL, GA

Better Business Bureaus

VA, GA

Sincerely