The PNC Financial Services Group has become the third financial institution in the past week to disclose that it is being investigated by the U.S. Department of Justice.
Last Tuesday, Bank of America Corp. disclosed that it is being investigated by the U.S. Attorney’s office for the Eastern District of New York for its compliance with Federal Housing Administration direct endorsement program requirements.
Then on Thursday, SunTrust Banks Inc. reported that the Justice Department notified it of an investigation into the origination and underwriting of mortgages sold by its mortgage unit to Fannie Mae and Freddie Mac.
Now, PNC has disclosed in a Securities and Exchange Commission filing that it has received multiple subpoenas from the U.S. Attorney’s Office for the Southern District of New York.
Two of the subpoenas concern FHA lending practices by National City Bank, which PNC acquired in 2008.
A third subpoena seeks information about claims for costs that are incurred by foreclosure counsel in connection with the foreclosure of mortgages insured or guaranteed by FHA, Fannie Mae or Freddie Mac.
“These inquiries are in their early stages and PNC is cooperating with the investigations,” the filing stated.
In addition, PNC is being subpoenaed for information about its Small Business Administration lending and the return rate for certain merchant and payment processor customers that PNC has a depository relationship.
PNC’s disclosure comes less than three months after it reported an agreement to pay $35 million to settle allegations that National City engaged in discriminatory pricing.
