Feds probe PNC mortgage pricing

by Ryan Smith12 Aug 2013

The Justice Department’s civil rights division and the Consumer Financial Protection Bureau are investigating PNC Financial Services for some of their mortgage pricing practices.

The banking giant stated in a Thursday filing with the SEC that the DOJ and CFPB are investigating whether its mortgage loan pricing “had a disparate impact on protected classes.”

The filing didn’t elaborate on the case, but the probe could mean that the government thinks PNC’s lending practices unfairly affected certain social groups, according to a USA Today report.

According to the SEC filing, the feds are investigating both PNC and National City, which PNC bought out in 2008. According to the filing, the DOJ notified PNC that “it had authorized the filing of a civil complaint against PNC, also as successor to National City.”

PNC has also been subpoenaed by the U.S. Attorney’s Office in Manhattan in a separate investigation, according to the filing.  The office was seeking information about “claims for foreclosure expenses that are incurred in connection with the foreclosure of loans insured or guaranteed by” Fannie Mae and Freddie Mac or the Federal Housing Administration.

PNC said it would cooperate with the investigations. “Our practice is to cooperate fully with regulatory and governmental investigations, audits and other inquiries,” the SEC filing stated.

COMMENTS

  • by Evelyn Santiago | 8/12/2013 10:31:41 AM

    PNC deserves this. In short sales they will force sellers to default to approve the short sale and cut the realtor's commission. Despite the fact that without the realtor's the short sale would not happen their way of treating their "partners" is to interfere with the contract and cut commission so they can make more money.

    Couldn't have happened to a "worse" servicer.

  • by Steve Martelli | 11/10/2013 12:20:07 PM

    I have finally hit pay dirt! PNC has been screwing me since March, 2011. They have a Real Estate Company who they sell both commercial and residential real estate to investors. What do you what to bet that they
    foreclose very quickly on short sells and have been lying, cheating and right out committing fraud on these FHA/HUD federally guaranteed mortgages in order to repo them for a good price and then turn them quickly through their real estate business for BIG PROFITS!!
    Please contact me:

Poll

Is TILA-RESPA a good or bad thing long term?