US Bank settles federal mortgage probe for $200M

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Associated Press

Posted on June 30, 2014 at 12:01 PM

Updated Monday, Jun 30 at 12:02 PM

CLEVELAND (AP) — Minneapolis-based U.S. Bank National Association has agreed to pay $200 million to settle allegations that it failed to check on the credit-worthiness of thousands of applicants when it issued government-insured mortgage loans between 2006 and 2011.

The U.S. attorney's office for northern Ohio announced the settlement Monday.

A statement of facts included with the settlement agreement said the bank also failed to properly audit its portfolio of insured loans to gauge its performance. The statement said the bank instead mixed those loans with noninsured loans in its report to the U.S. Department of Housing and Urban Development.

A company spokeswoman says in a statement that the bank cooperated with authorities and did not admit to wrongdoing.

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