Flagstar Bancorp is negotiating with the Consumer Financial Protection Bureau over potential violations in the Troy, Mich., company's default servicing business.
The $9.5 billion-asset company disclosed the settlement talks in a regulatory filing Tuesday.
The CFPB alleges that Flagstar's bank violated consumer protection laws with loss-mitigation practices that date back to 2011, the filing said.
Flagstar said it had provided the agency with documents and other information and is having ongoing discussions about a settlement. "The bank intends to vigorously defend against any enforcement action that may be brought," the filing added.