RBS will Pay $500 Million in Settlement for Mis-Selling Mortgaged Backed Securities 10 years Ago
Royal Bank of Scotland (RBS) has agreed to pay $500 million in settlement for deceptive practices and misrepresentations of residential mortgage-backed securities (RMBS) leading up to the financial crisis in 2008. The settlement includes $100 million in cash to New York State and $400 million worth of consumer relief for New York homeowners and communities, including funds to spur construction of more affordable housing and to purchase distressed properties to prevent predatory investors.
” RBS to Pay $500 Million in Settlements “
RBS admitted it continued to package and sell to investors RMBS backed by mortgage loan, despite being warned by due diligence vendors the mortgage loans did not comply with underwriting guidelines, and applicable laws and regulations. RBS had also securitised a large numbers of loans for which no diligence was performed. Reviews conducted after the defaults of the mortgage loans showed serious problems in the origination of the loans and the originator.
The settlement was led by Attorney General Schneiderman, a key figure in recovering billions of settlements. He is the co-chaired of the collaboration that includes Department of Justice (United States) and other federal entities to investigate those responsible for misconduct contributing to the 2008 financial crisis for the pooling and sale of residential mortgage-backed securities.
About Royal Bank of Scotland
Today’s RBS and its brands are made up of hundreds of past banks. They were all different – large and small, city and country, traditional and innovative – and grew to serve the banking needs of unique communities all over the United Kingdom. Each one has left its mark on our identity today. The Royal Bank of Scotland was founded in Edinburgh in 1727. It went on to become one of the biggest banks in Scotland.
Visit: Royal Bank of Scotland
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