Branch Banking & Trust Company will pay the federal government $83 million as part of a settlement relating to its lending practices for mortgages insured by the Federal Housing Administration, the Justice Department said yesterday, according to Morningconsult.com reported. The Winston-Salem, N.C.-based BB&T didn’t follow rules for FHA-insured mortgages prescribed by the Department of Housing and Urban Development from 2006 through 2014, according to the Justice Department. The bank doubled its loan volume during that period but did not comply with HUD rules on underwriting and quality control, the Justice Department said. Despite that failure to comply, BB&T still sought FHA insurance for the mortgages and pursued payment from that insurance if the loans defaulted, DOJ said.
