Federal Authorities Investigating Lending Practices At PNC

Posted by Patrick Barnard on August 12, 2013 No Comments
Categories : Residential Mortgage

The Justice Department and the Consumer Financial Protection Bureau (CFPB) are reportedly investigating the mortgage-related practices of PNC Financial Services, including how it priced certain loans.

Specifically, regulators are investigating whether the pricing of mortgages by PNC and National City, which it acquired in 2008, ‘had a disparate impact on protected classes’ of homeowners – in other words, whether or not certain ethnic or socio-economic groups were unfairly affected by the bank's mortgage lending practices, according to a report in the Sun Herald of South Mississippi.

The CFPB warned the bank in June that it had authorized settlement negotiations. In addition, the Justice Department informed the bank that it had authorized the filing of a civil complaint, according to the report, citing a regulatory filing submitted by PNC last week.

In a separate action, the U.S. Attorney's office in Manhattan has issued a subpoena seeking information about PNC's ‘claims for foreclosure expenses that are incurred in connection with the foreclosure of loans insured or guaranteed by’ the Federal Housing Administration or the government-sponsored mortgage lenders Fannie Mae and Freddie Mac.

For more, check out the Sun Herald report.

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