M&S filed suit in the Superior Court of the District of Columbia on behalf of a class of D.C. borrowers who obtained a home loan from SunTrust Mortgage, Inc., (“SunTrust”), where SunTrust did not clearly or fully disclose the requirement for private mortgage insurance (“PMI”) in a timely manner. PMI is insurance purchased by the borrower to protect the lender against default and typically is required where the borrower put less than 20% down on the home purchase.
Plaintiffs allege a “bait and switch” scheme whereby SunTrust does not clearly or fully disclose the PMI until shortly before closing, effectively denying the borrower the ability to shop around for a better loan. The named plaintiffs in this case were informed of the PMI requirements on their loan, totaling $305 per month, as they were driving to the loan closing.
Case Documents:
Complaint