PNC Bank 2015 Annual Report Download - page 222

• In February 2012, the Department of Justice,
other federal regulators and 49 state attorneys
general announced agreements with the five
largest mortgage servicers. Written agreements
were filed with the U.S. District Court for the
Southern District of New York in March 2012.
Under these agreements, the mortgage servicers
will make cash payments to federal and state
governments, provide various forms of financial
relief to borrowers, and implement new
mortgage servicing standards. These
governmental authorities are continuing their
review of, and have engaged in discussions with,
other mortgage servicers, including PNC, that
were subject to the interagency horizontal
review, which could result in the imposition of
substantial payments and other forms of relief
(similar to that agreed to by the five largest
servicers) on some or all of these mortgage
servicers, including PNC. Whether and to what
extent any such relief may be imposed on PNC is
not yet known.
• PNC received subpoenas from the U.S.
Attorney’s Office for the Southern District of
New York. The first two subpoenas, served in
2011, concern National City Bank’s lending
practices in connection with loans insured by the
Federal Housing Administration (FHA) as well
as certain non-FHA-insured loan origination,
sale and securitization practices. A third, served
in 2013, seeks information regarding claims for
costs that are incurred by foreclosure counsel in
connection with the foreclosure of loans insured
or guaranteed by FHA, FNMA or FHLMC. PNC
is cooperating with the investigations.
• Through the U.S. Attorney’s Office for the District of
Maryland, the office of the Inspector General for the
Small Business Administration (SBA) served a
subpoena on PNC in 2012 requesting documents
concerning PNC’s relationship with, including SBA-
guaranteed loans made through, a broker named Jade
Capital Investments, LLC (Jade), as well as
information regarding other PNC-originated SBA
guaranteed loans made to businesses located in the
State of Maryland, the Commonwealth of Virginia,
and Washington, DC. Certain of the Jade loans have
been identified in an indictment and subsequent
superseding indictment charging persons associated
with Jade with conspiracy to commit bank fraud,
substantive violations of the federal bank fraud
statute, and money laundering. PNC and the U.S.
Attorney’s Office are in discussions regarding a
possible resolution of the investigation.
Our practice is to cooperate fully with regulatory and
governmental investigations, audits and other inquiries,
including those described in this Note 20.
Other
In addition to the proceedings or other matters described
above, PNC and persons to whom we may have
indemnification obligations, in the normal course of business,
are subject to various other pending and threatened legal
proceedings in which claims for monetary damages and other
relief are asserted. We do not anticipate, at the present time,
that the ultimate aggregate liability, if any, arising out of such
other legal proceedings will have a material adverse effect on
our financial position. However, we cannot now determine
whether or not any claims asserted against us or others to
whom we may have indemnification obligations, whether in
the proceedings or other matters described above or otherwise,
will have a material adverse effect on our results of operations
in any future reporting period, which will depend on, among
other things, the amount of the loss resulting from the claim
and the amount of income otherwise reported for the reporting
period.
See Note 21 Commitments and Guarantees for additional
information regarding the Visa indemnification and our other
obligations to provide indemnification, including to current
and former officers, directors, employees and agents of PNC
and companies we have acquired.
204 The PNC Financial Services Group, Inc. – Form 10-K