BB&T Agrees $83 Million Settlement Of FHA-insured Mortgage Issues

BB&T Corp. said Thursday it has reached an agreement with the U.S. Justice Department to settle issues relating to mortgage loans insured by the the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA). The regional bank said it will pay $83 million to settle the issues without admission of liability. "The settlement will have no negative effect on BB&T's financial condition or results of operations as a result of previous accruals totaling $85 million," BB&T said in a statement. "In a related matter, BB&T is pursuing a potential recovery of approximately $70 million." Shares were down about 1%, while the S&P 500 was down 0.8%.