According to Bloomberg, Regions Financial Corp. (RF), received a subpoena from the U.S. Department of Housing and Urban Development tied to the origination of mortgages backed by the Federal Housing Administration.
The lender is cooperating with the inquiry and expects “the outcome of pending and threatened litigation and inquiries will not have a material effect,” the Birmingham-based company said today in a quarterly filing.
Federal agencies are pursing the largest U.S. lenders for claims tied to faulty underwriting and bias on home and auto loans. Attorney General Eric Holder said in an interview last month that holding banks accountable for actions that contributed to the financial crisis are a priority for him and President Barack Obama.
