BB&T Announces Settlement Resolving FHA-insured Mortgage Issues
Friday, September 30th, 2016
BB&T Corporation announced it has reached an agreement with the United States Department of Justice that settles certain legacy mortgage matters involving the origination of mortgage loans insured by the U.S. Department of Housing and Urban Development's Federal Housing Administration.
BB&T fully cooperated with all agencies involved in this matter. The inquiry was settled for $83 million without any admission of liability to avoid the cost and uncertainty of potential litigation. The investigation, potential claims and estimated potential net exposure to losses were previously disclosed. The settlement will have no negative effect on BB&T's financial condition or results of operations as a result of previous accruals totaling $85 million. In a related matter, BB&T is pursuing a potential recovery of approximately $70 million.
BB&T remains committed to providing a high-quality mortgage experience along with exceptional service to help our clients achieve economic success and financial security.