U.S. Bancorp reports new investigations of FHA-backed loans

  • Article by: ELIZABETH DEXHEIMER , Bloomberg News
  • Updated: May 8, 2014 - 6:11 AM

Federal investigators looking into mortgage origination, servicing.

hide

FILE - In this Oct. 20, 2009 file photo, signs on a US Bank branch in Omaha, Neb. are shown Tuesday, Oct. 20, 2009.

 

U.S. Bancorp, the nation’s largest regional lender, said authorities are investigating origination and servicing practices for home loans insured by the Federal Housing Administration.

Agencies also are probing compliance with sales guidelines on home loans bought by government-sponsored enterprises “and various practices related to lender-placed insurance,” the Minneapolis-based company said Wednesday in its quarterly regulatory filing. The FHA probe includes the Department of Housing and Urban Development’s inspector general and the Justice Department, according to the filing.

“The company is cooperating fully with these examinations and investigations, any of which could lead to administrative or legal proceedings or settlements,” the bank said. The outcome could include fines, penalties, restitution or more expensive business practices, according to the filing.

Regulators are probing allegations of faulty underwriting and bias on home and auto loans at some of the biggest regional U.S. lenders. Regions Financial Corp. said in November that it was subpoenaed by HUD over the origination of FHA-backed mortgages. Regions, based in Birmingham, Ala., has said it’s cooperating.

Nicole Garrison-Sprenger, a spokeswoman for U.S. Bancorp, and Marta Metelko, a spokeswoman for HUD’s inspector general, declined to comment. □

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

 
Close