Regions Bank to Pay $52M to Settle Mortgage Case

     (CN) – Alabama-based Regions Bank will pay more than $52 million to resolve allegations it improperly handled mortgage loans.
     The Justice Department said Tuesday that the Birmingham-based bank was accused of handling mortgage loans insured by the Federal Housing Administration that failed to meet requirements designed to protect homeowners.
     The Justice Department statement also said that as part of the settlement, Regions acknowledged it failed to follow several federal guidelines between Jan. 1, 2006 and Dec. 31, 2011.
     Federal authorities say that as a result, the U.S. government insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance. Authorities say HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
     In a written statement posted on its website, the bank said it fully cooperated with the inquiry and agreed to pay the settlement, without admitting liability, “in order to avoid the expense of potential litigation.”
     “Regions established and previously disclosed reserves sufficient to cover this matter; therefore, this settlement will not have a material impact on Regions’ financial condition or results of operations,” the statement continued. “Regions is pleased to resolve this inquiry and is committed to maintaining fair, consistent and accurate loan origination practices.”

%d bloggers like this: