BB&T paying $83 million settlement in Justice Department investigation
BB&T Corp. will pay $83 million to settle charges that it originated and underwrote federally insured mortgages that failed to meet government requirements.
The second-largest bank by deposits in the greater Lehigh Valley exposed taxpayers to "substantial losses," the U.S. Justice Department said Thursday in a news release.
"While profiting from the {Federal Housing Administration} program, BB&T exposed the taxpayers to losses by failing to comply with {U.S. Department of Housing and Urban Development} guidelines and then took the additional step of falsely certifying that it had complied with such guidelines," said U.S. Attorney John Horn in a statement.
In a news release, BB&T said it cooperated with all agencies involved in the investigation, and that it agreed upon the penalty without admitting any wrongdoing to avoid the cost and uncertainty of potential litigation.
Read more: http://www.mcall.com/business/mc-bbt-mortgage-settlement-penalty-20161003-story.html