12:18 AM » PNC being probed on mortgage loans by DOJ
NEW YORK (MarketWatch) -- PNC Financial Service Group Inc. is being investigated for faulty mortgage loan pricing related to foreclosure expenses, according to a filing by the firm with the Securities and Exchange Commission on Thursday. The Justice Department's Civil Rights Division and the Consumer Financial Protection Bureau are jointly investigating whether mortgage-loan pricing by National City Corp., which the bank acquired in 2008, as well as PNC, had a "disparate impact on protected classes" of borrowers. The loans in question were insured or guaranteed by the Federal Housing Association, Fannie Mae and Freddie Mac. The Pittsburg-based lender has also received a subpoena from the U.S. Attorney's Office for the Southern District of New York asking for information related to claims for foreclosure expenses incurred in connection with foreclosure of loans. The investigation is in its early stages and PNC is cooperating with the investigation said the filing.