Regions Financial Says FHFA Watchdog Probing Loans Sold to GSEsDavid Scheer
Regions Financial Corp., Alabama’s biggest bank, received an investigative request from the Federal Housing Finance Agency’s inspector general, focusing on loans the firm sold to Fannie Mae and Freddie Mac.
The inspector’s September inquiry relates to origination, underwriting and quality control practices for loans sold to the government-sponsored enterprises, the Birmingham-based lender said today in a quarterly report. It follows requests last year from other government agencies as part of industrywide investigations, and the bank said it’s cooperating.
“The company cannot predict the ultimate outcome of the investigations concerning its practices, however it is possible that these investigations could result in the payment of a monetary penalty which may adversely affect results of operations,” it said.