M&T Bank Corp said on Wednesday that it is in talks to settle a probe by U.S. federal authorities on its mortgage lending operations.

The bank said the U.S. Department of Housing and Urban Development Office of Inspector General and the U.S. Department of Justice are investigating whether the bank complied with underwriting guidelines for Federal Housing Administration-insured loans and the mortgages sold to Freddie Mac and Fannie Mae.

M&T Bank said it is co-operating with the investigations and discussions to settle the investigations are underway.

The bank said based on its own review of the sample, it does not agree with the sampling methodology and loan analysis employed by the government.