BB&T announces settlement resolving FHA-insured mortgage issues
OREANDA-NEWS. September 30, 2016. BB&T Corporation (NYSE: BBT) today announced it has reached an agreement with the United States Department of Justice (DOJ) 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 (FHA).
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.
BB&T is one of the largest financial services holding companies in the U.S. with approximately \\$221.9 billion in assets and market capitalization of approximately \\$29.0 billion, as of June 30, 2016. Based in Winston-Salem, N.C., the company operates 2,249 financial centers in 15 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is recognized consistently for outstanding client satisfaction by the U.S. Small Business Administration, Greenwich Associates, and others. BB&T also has been named one of the World's Strongest Banks by Bloomberg Markets Magazine, one of the top three in the U.S. and in the top 15 globally. More information about BB&T and its full line of products and services is available at BBT.com.
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