Summary
PNC Financial Services Group, Inc. (PNC) filed an 8-K on April 14, 2011, reporting on consent orders entered into with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (OCC). These orders stem from an interagency horizontal review of residential mortgage servicing operations. The findings identified deficiencies in certain residential mortgage foreclosure-related practices and controls. As a result, PNC and its subsidiary PNC Bank, N.A. are required to implement enhanced servicing and foreclosure processes, engage an independent consultant to review past foreclosure actions, and undertake other remedial measures. While these orders address specific operational deficiencies, they do not preclude further investigations or potential penalties from other governmental or regulatory bodies.
Key Highlights
- 1PNC Financial Services Group entered into consent orders with the Federal Reserve and the OCC regarding residential mortgage servicing and foreclosure practices.
- 2The orders were a result of an interagency horizontal review of mortgage servicing operations.
- 3Deficiencies were identified in foreclosure-related practices and controls.
- 4PNC and PNC Bank are required to enhance their mortgage servicing and foreclosure processes.
- 5An independent consultant will review certain residential mortgage foreclosure actions.
- 6The consent orders do not resolve other ongoing federal or state investigations, nor do they preclude civil money penalties.
- 7Exhibits 99.1 and 99.2 contain the full details of the consent orders.