Regulators have issued subpoenas and requested information from
Capital One Financial Corp. and one of its subsidiaries as part of
probe into alleged mortgage-bond fraud, the McLean, Va.-based bank
said in a regulatory filing Thursday.
Capital One said both it and its GreenPoint Mortgage Funding
Inc. business received "requests for information and/or subpoenas
from various governmental regulators and law enforcement
authorities" last year.
Requests include those made by a task force of federal and state
law-enforcement agencies known as the Residential Mortgage-Backed
Securities Working Group, which was established by President Barack
Obama's administration in early 2012. The group has investigated
banks including J.P. Morgan Chase & Co., Bank of America Corp.
and others over alleged fraud in the creation and sale of mortgage
securities.
"We are cooperating with these regulators and other authorities
in responding to such requests," McLean, Va.-based Capital One said
in its annual 10-K filed with the Securities and Exchange
Commission.
A spokeswoman for Capital One declined to comment.
GreenPoint was a unit of North Fork Bancorporation Inc., a New
York-based bank that Capital One acquired in 2006.
GreenPoint and two other subsidiaries that Capital One acquired
had originated and sold about $111 billion of mortgage loans
between 2005 and 2008, according to its filing. Such loans have
been subject to the vast majority of the repurchase requests that
Capital One has received from buyers of the loans, it said.
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