PNC under investigation for FHA, Fannie, Freddie mortgages
Subpoenas issued concern National City mortgages
PNC (PNC) received subpoenas from the U.S. Attorney's Office for the Southern District of New York, regarding alleged faulty lending practices, the company said in a regulatory filing.
The subpoenas involve National City Bank, now acquired by PNC, lending practices with loans insured by the Federal Housing Administration as well as certain non-FHA-insured loan origination, sale and securitization practices.
The statement also noted that a third subpoena seeks information regarding claims for costs that are incurred by foreclosure counsel in connection with the foreclosure of loans insured or guaranteed by FHA, Fannie Mae or Freddie Mac.
The investigation is still in its early stages and the lender said it is being cooperative.
Earlier, the Department of Justice, Civil Rights Division and the Consumer Financial Protection Bureau jointly investigated whether mortgage loan pricing by National City and PNC had a disparate impact on protected classes.
PNC previously reached a $35 million settlement with the Department of Justice and the CFPB in December 2013 covering lending activity by National City Bank from 2002 to its merger with PNC Bank.
While the bank does not anticipate that the ultimate aggregate liability, if any, arising out of such other legal proceedings will have a material adverse effect on its financial position, they cannot determine whether or not any claims asserted against it will have a drastic impact.