PNC subpoenaed in New York concerning past lending practices
PNC Financial Services Inc. disclosed in a federal filing Monday that it has received three subpoenas from federal officials in New York concerning past lending practices.
In its 578-page annual report filed Monday with the Securities and Exchange Commission, the company said it received the notices from the U.S. Attorney’s Office for the Southern District of New York.
The first two are about National City Bank’s lending practices in connection with loans insured by the Federal Housing Administration and certain non-FHA-insured loan origination and sale practices.
The third subpoena is looking for information regarding claims that costs are incurred by foreclosure counsel in connection with foreclosure of loans insured or guaranteed by the FHA, Fannie Mae or Freddie Mac.
The company acquired National City in 2008.
The investigations are in the early stages, according to the company. It said it is cooperating with the investigations.
PNC said it no longer deals in the brokered home equity lending businesses.
The company also said it paid a $35 million settlement in January to the Department of Justice and the Consumer Financial Protection Bureau after it had been under investigation on whether loan pricing by National City and PNC negatively impacted protected groups. The settlement will be distributed to people identified by the government agencies.
The company specifically listed 11 ongoing lawsuits it is dealing with, and said losses from lawsuits could be as high as $800 million.