PNC Settles CBNV Mortgage Loan Class Action Lawsuit

PNC Financial Services Group will pay a minimum of $24 million to settle a class action lawsuit alleging Community Bank of Northern Virginia (CBNV), a bank that was acquired by PNC, overcharged fees and interest for secondary mortgages and didn’t make accurate disclosures about the terms of its loans or business practices, according to court documents filed this month in Pennsylvania federal court.

Starting in 2001, CBNV was hit with several class action lawsuits that accused the bank of violating the Real Estate Settlement Procedures Act, the Truth In Lending Act, the Home Ownership and Equity Protection Act and the Racketeer Influenced and Corrupt Organizations Act in connection with the origination of second mortgage loans.

CBNV was acquired by Mercantile-Safe Deposit and Trust Company in 2005. PNC acquired Mercantile (and CBNV) in 2007.

According to the settlement documents, PNC had no involvement with any of the activity at issue in the class action lawsuit, which involves conduct by CBNV that took place between 1998 and 2002.

As a successor to CBNV, PNC denies any wrongdoing and maintains that neither CBNV or PNC violated the law when making the loans at issue in this litigation.

PNC has agreed to settle the class action lawsuit to avoid the expense and uncertainty of ongoing litigation.

Class Members of the CBNV settlement include: “All persons nationwide who obtained a second or subordinate residential, federally related, non purchase money mortgage loan from Community Bank of Northern Virginia (‘CBNV’) that was secured by residential real property used as their principal dwelling for the period May 1998 – December 2002.”

According to the court documents, the amount of the settlement will be determined by an ADR procedure. A panel will hear arguments from both parties and will determine whether PNC will pay $24 million or $70 million to Class Members.

The amount each Class Member will be eligible to receive has not yet been determined.

Class Counsel estimates that payments may average approximately $560 or $1,680 per loan, depending on the settlement amount chosen by the panel.

Eligible Class Members will not have to take any action to receive payment. If the settlement is approved, checks will automatically be mailed to qualified Class Members.

If you are not sure if you are included as a Class Member of the CBNV mortgage loan settlement, you may call Class Counsel at (800) 330-2581, (800) 330-2591, or (800) 467-5241.

The deadline to object to or opt out of the CBNV mortgage loan settlement is Nov. 23, 2016. The final fairness hearing for the PNC class action settlement has been set for Dec. 13, 2016.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the green “Follow Article” button at the top of the post.

The plaintiffs are represented by R. Frederick Walters, J. Michael Vaughan, David M. Skeens and Garrett M. Hodes of Walters Bender Strohbehn & Vaughan PC.

The PNC Mortgage Loan Class Action Lawsuit is In re: Community Bank of Northern Virginia Second Mortgage Lending Practices Litigation, Case No. 2:03-cv-00425-AJS, in the U.S. District Court for the Western District of Pennsylvania.