PNC receives subpoenas over mortgages, payment-processing

|About: PNC Financial Services G... (PNC)|By:, SA News Editor

The U.S. attorney's office for the Southern District of New York has issued two subpoenas regarding National City's practices involving FHA-insured loans as well for certain loans not insured by the agency. Previously, PNC had disclosed subpoenas from the same office over claims for costs incurred while foreclosing on mortgages insured or guaranteed by the FHA or the GSEs.

Separately, PNC received a subpoena from the DOJ seeking information on the "return rate" for certain merchant and payment processors the bank deals with. "We believe that the subpoena is intended to determine whether, and to what extent, PNC may have facilitated fraud committed by third-parties against consumers," says the bank.