PNC Reaches $89 Million Settlement with Freddie Mac

By Sarah Todd December 06, 2013, 10:08 a.m. EST 1 Min Read

Consumer banking

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Regulators are examining loans originated by National City, which PNC bought in 2008, suggesting they might have been priced to have a "disparate impact" on minority borrowers.

By Rachel Witkowski

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Consumer banking

PNC to Record Nearly $500 Million in 4Q Charges

PNC said in a SEC filing Wednesday that it will record nearly $500 million in charges in the fourth quarter, more than half of which are related to its repurchase of troubled mortgage loans it had previously sold to Fannie Mae and Freddie Mac.

By Chris Cumming

January 9

PNC Financial Services Group (PNC) in Pittsburgh has agreed to pay $89 million to Freddie Mac in order to resolve repurchase obligations on loans sold to the government-sponsored entity.

The $298 billion-asset PNC said Friday that the settlement covers approximately 900,000 loans originated and sold to Freddie Mac between 2000 and 2008.

PNC agreed in October to pay Fannie Mae an undisclosed sum in order to resolve repurchase demands on loans sold between 2000 and 2008. The two settlements will effectively resolve all of PNC's repurchase obligations for loans sold to the GSEs between 2000 and 2008, according to the company's press release.

PNC said that the amount of the settlements had been fully accrued as of Sept. 30.

Both settlements must still be approved by the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac.

Sarah Todd

Deputy Editor, BankThink