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Roundup: GM worker warned company of switch problem in 2005; SunTrust Mortgage settles federal probe for $320M; more

| Thursday, July 3, 2014, 10:30 p.m.

GM worker warned company of faulty ignition switch in '05

General Motors says it recalled 3.4 million large cars last month after finding a 9-year-old email from an employee in its files warning of trouble. The admission is more evidence that GM knew about safety problems for years but failed to recall cars until recently. The company didn't recall the cars when it got the email in 2005. But it decided to call them in for repairs last month after finding the old email in its files in an April search. In the email, an employee who was testing a 2006 Chevrolet Impala before production reported that the engine stalled and a technician blamed it on a faulty ignition switch. The email was detailed in documents released Thursday by the National Highway Traffic Safety Administration.

SunTrust Mortgage settles federal probe for $320M

SunTrust Mortgage Inc. has agreed to pay up to $320 million to resolve allegations that it misled customers seeking loan modifications. The company and U.S. Attorney Timothy Heaphy announced the settlement Thursday. Settlement documents say SunTrust misrepresented or omitted information to borrowers participating in the federal Home Affordable Modification Program and failed to process applications in a timely manner. The company is making up to $274 million available for restitution to customers who suffered financial harm. Additional funds will go to Fannie Mae and Fannie Mac, to law enforcement agencies working on mortgage fraud and to mortgage counseling agencies. SunTrust Mortgage CEO Jerome Lienhard said in a news release that the company recognizes there were deficiencies in its administration of the program and is focused on the future.

— Staff and wire reports

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