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""RBS"":http://www.rbs.co.uk/corporate/banking/g2/expert-industry-teams/retail-wholesale.ashx Financial Products (RBSFP) will pay the state of Nevada $42 million to settle allegations over the firm's role in buying and securitizing subprime and payment option adjustable rate mortgages (ARMs), ""Nevada Attorney General Catherine Cortez Masto"":http://ag.nv.gov announced Wednesday.
[IMAGE] [COLUMN_BREAK]The $42 million will be used for payments to affected borrowers, mortgage fraud enforcement, foreclosure prevention, and attorney's fees and costs.
According to a release, the claims are the result of a nearly two-year long investigation focused on potential misrepresentations by lenders who provided subprime or ARM loans to Nevadans that were bought and securitized by RBS between 2004 and 2007.
In addition to lender misrepresentations on high-risk loans, the AG's office examined the role of RBS, such as to what extent RBS was aware of the alleged practices from lenders when the firm bought the loans and whether RBS substantially assisted the lenders by financing and purchasing the loans.
RBS neither admits nor denies any wrongdoing.
In addition to paying $42 million, RBS will purchase or securitize Nevada subprime mortgage loans after ""reasonable review"" of the loans and only if the loans fall within the Nevada Deceptive Trade Practices Act.
Borrowrs who are eligible for relief can find information that will be updated periodically on the AG's ""website"":http://ag.nv.gov/RBS.
