PNC says foreclosure deal will cut profit
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PNC Financial Services Group this morning said special charges primarily related to its residential mortgage business, including the costs of settling federal complaints about foreclosure abuses, would cut fourth-quarter profit by about 47 cents per share.
The charges include about $70 million related to the deal announced earlier this week with federal regulators by 10 major U.S. banks, including PNC, Pittsburgh's dominant bank said in a government filing.
The banks agreed to a total of $8.5 billion in direct payments and mortgage assistance to homeowners nationwide to settle allegations that they were wrongly foreclosed upon in 2009 and 2010.
PNC also recorded a $254 million pretax provision for residential mortgage repurchase demands related to an expected increase in requests from Freddie Mac and Fannie Mae. That bolstered the bank's reserve for residential mortgage repurchase claims to $614 million as of Dec. 31, 2012, the filing said.
PNC shares fell $1.09, or about 2 percent, in early trading to $59.16.
The bank is to report financial results for the fourth quarter and full year on Jan. 17.
First Published January 9, 2013 10:03 am