Regions Reaches Agreement With DOJ in Mortgage Investigationby
Regions Financial Corp., Alabama’s biggest bank, reached a preliminary agreement with the U.S. Department of Justice to resolve an investigation into mortgage abuses.
“The settlement, which is subject to final review and approval by the Department of Justice, will not have a material effect on Regions’ consolidated financial position,” the Birmingham-based lender said Friday in its quarterly regulatory filing. Regions didn’t disclose a settlement amount, but said it has previously set aside money to cover the costs.
The firm said in 2013 that it had received a subpoena from the U.S. Department of Housing and Urban Development tied to the origination of mortgages backed by the Federal Housing Administration.
Regions climbed 4.5 percent to $9.45 at 11:52 a.m. in New York, the second-best performance in the 24-company KBW Bank Index. The shares have dropped 1.6 percent this year.