(Adds background on settlements, comment from SunTrustspokesman, byline)
By Jonathan Stempel
Aug 6 (Reuters) - SunTrust Banks Inc said onWednesday it is cooperating with the office of U.S. AttorneyPreet Bharara in New York on a broader industry investigationinto expenses charged by law firms in connection withforeclosures.
In a regulatory filing, the Atlanta-based regional bank saidthe expenses relate to foreclosures of loans guaranteed orinsured by government-controlled mortgage companies Fannie Mae or Freddie Mac, or by the Federal HousingAdministration.
SunTrust said the investigation relates to a privatewhistleblower lawsuit that was filed under seal and remains inearly stages. It said it has had a "dialogue" with Bharara'soffice to resolve the matter, but did not reach an agreement.
Michael McCoy, a SunTrust spokesman, declined to elaborateon the filing. Betsy Feuerstein, a spokeswoman for Bharara,declined to comment.
In June, SunTrust reached a $968 million settlement with theU.S. Department of Justice to resolve claims over otherquestionable mortgage practices.
The next month, it agreed to pay as much as $320 million toresolve a U.S. criminal probe into its alleged mismanagement ofa program to help struggling homeowners avoid foreclosure duringthe recession.
Also in July, HSBC Holdings Plc agreed to pay $10million to settle charges that it submitted inflated bills tothe FHA and Fannie Mae to process foreclosures.
Banco Santander SA, MetLife Inc, PHH Corp, PNC Financial Services Group Inc and Royal Bankof Scotland Group Plc's Citizens Financial unit havealso received subpoenas from Bharara over foreclosure feescharged to the FHA, Fannie Mae and Freddie Mac. (Reporting by Jonathan Stempel in New York; Editing by LisaShumaker and Andre Grenon)