Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

U.S. Bancorp Reports New Investigations of FHA Lending

May 7 (Bloomberg) -- 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 are also 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 today 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 it was subpoenaed by HUD over the origination of mortgages backed by the FHA. Regions, based in Birmingham, Alabama, 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.

To contact the reporter on this story: Elizabeth Dexheimer in New York at edexheimer@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net Rick Green, David Scheer

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.