HUD audits BB&T over government-backed loans
Bank sets aside reserves of $53 million
BB&T (BBT) is next on the U.S. Department of Housing and Urban Development's list of banks to audit. HUD is looking into the lender's sales of government-backed loans, according to an article in Bloomberg. However, it could be at least a year and a half before the company finds out the results.
BB&T was notified of the audit last quarter and set aside reserves of $53 million, or 7 cents a share, based on the outcomes of similar queries, the Winston-Salem-based lender said today in a statement.
“While there are no findings from HUD at this time, in light of announcements made by other financial institutions related to the outcomes of similar audits and related matters, and after further review of our exposure, we believe it is prudent to establish reserves,” the firm said in the statement.