BB&T said it has received subpoenas from the Department of Justice seeking additional information related to a federal audit last year of its government-backed loans operation.
The Winston-Salem-based lender said it received the subpoenas in November and December. They followed a notification in June that the U.S. Department of Housing and Urban Development’s inspector general was auditing the bank’s compliance with Federal Housing Administration requirements for loan originations.
BB&T said in its annual report Wednesday that it’s cooperating with the department and is responding to the subpoenas. It also said that HUD’s inspector general has not made any claims against it and that it is unclear when the matter might be resolved.
BB&T said it has set aside $85 million in connection with the issue. The lender said it has identified a “potential exposure” related to losses incurred by the FHA on defaulted loans that range from $25 million to $105 million.
The bank declined to comment beyond what it disclosed in the annual report.
BB&T is the third-largest bank by deposits in the Charlotte metropolitan area, where it has roughly 1,900 employees across various business lines and about 70 branches.