Markets
MTB

M&T Bank in Talks to Resolve Mortgage Lending Probe - Analyst Blog

A generic image of coins in front of a stock chart.
Credit: Shutterstock photo

M&T Bank CorporationMTB is in discussions with the U.S. authorities to resolve investigation over its mortgage lending operations.

According to the New York-based bank's latest quarterly filing, several government agencies are conducting investigations relating to the bank's origination of Federal Housing Administration ("FHA") insured loans and mortgages sold to Freddie Mac FMCC and Fannie Mae FNMA .

The U.S. Department of Housing and Urban Development Office of Inspector General and the U.S. Department of Justice are probing to determine whether M&T Bank complied with underwriting guidelines related to the FHA loans and mortgages.

According to the review of the government, some of the FHA loans do not conform to the underwriting guidelines. However, the bank "based on its own review of the sample, does not agree with the sampling methodology and loan analysis employed by the government."

M&T Bank mentioned that it is extending co-operation to the authorities in the investigation and has initiated settlement talks. The bank also noted that remedies in the settlements may include restitution, fines and penalties.

While the latest investigation adds to M&T Bank's string of litigations and probe, any possible settlement is likely to bring relief to the bank.

M&T Bank currently carries a Zacks Rank #3 (Hold). Citigroup Inc. C is a better-ranked stock in the major regional banks space with a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

M&T BANK CORP (MTB): Free Stock Analysis Report

FREDDIE MAC (FMCC): Free Stock Analysis Report

CITIGROUP INC (C): Free Stock Analysis Report

FANNIE MAE (FNMA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MTB C

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More