Winston-Salem-based BB&T posted profit of
In announcing its latest earnings results, the third-largest bank by assets in the Charlotte area disclosed that it has been selected for an audit of its compliance with requirements for mortgages insured by the
No claims have been made against BB&T, and the outcome of the review remains unknown, the lender said. The announcement of the review comes as banks nationwide continue to reach large settlements with the government over mortgages that soured and contributed to the financial crisis.
BB&T said it set aside
Other mortgage-related costs also hurt BB&T's results in the second quarter. The lender said it recorded a
A rise in interest rates that began last year has significantly lowered demand to refinance mortgages, sending banks searching for ways to offset lower revenues. BB&T's mortgage banking income fell 49 percent from a year ago, to
On a Monday earnings call with analysts, CEO
In the quarter, BB&T's commercial and industrial loans increased to
BB&T, like other lenders, is also writing off fewer bad loans, an indication that more loans are being paid on time. Net charge-offs as a percentage of average loans and leases fell in the second quarter to their lowest levels since 2007, BB&T said.
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