On April 2, 2015, a regional bank reached an agreement in principle to settle allegations brought by the U.S. Department of Justice (DOJ) and U.S. Department of Housing and Urban Development (HUD) relating to its former subsidiary’s issuance of mortgage loans insured by the Federal Housing Administration (FHA). The DOJ had previously investigated the regional bank’s quality-control processes related to the regional bank’s underwriting and origination of HUD loans and its self-reporting requirements for HUD loans. On December 17, 2014, the DOJ made a written demand on the bank, in which indicated that its investigation was substantially complete and that it planned to file suit against the regional bank for its failure to comply with FHA and HUD residential-mortgage guidelines. The bank has since filed a Complaint in the U.S. District Court for the Western District of Tennessee against eight of its financial institution professional liability insurers, seeking a declaration that the regional bank’s anticipated payment of the $212,500,000 settlement is covered by its insurance policies.