PNC Gets Subpoena on Foreclosures as DOJ Pursues Mortgage Loans

from bloomberg


By Rick Green - Aug 8, 2013 9:27 AM PT

Aug. 8 (Bloomberg) -- PNC Financial Services Group Inc. got a U.S. subpoena tied to foreclosure expenses on federally backed home loans and said two agencies are investigating whether its mortgages were unfairly priced.

The Department of Justice told PNC in June it may file a civil complaint tied to an investigation into “whether mortgage loan pricing by National City and PNC had a disparate impact on protected classes,” according to a regulatory filing today. The Consumer Financial Protection Bureau has authorized settlement talks, the Pittsburgh-based bank said. PNC purchased National City Corp., one of the nation’s biggest subprime home lenders, in 2009.

Additionally, the U.S. Attorney’s Office for the Southern District of New York wants information about expenses tied to foreclosures of loans insured or guaranteed by the Federal Housing Administration, Fannie Mae or Freddie Mac, according to the filing. PNC said it’s cooperating with the investigation, which is in its early stages.

To contact the reporter on this story: Rick Green in New York at rgreen18@bloomberg.net

To contact the editor responsible for this story: Christine Harper at charper@bloomberg.net