BIRMINGHAM, Ala. (AP) — Federal officials say Alabama-based Regions Bank has agreed to pay more than $52 million to resolve allegations that it improperly handled mortgage loans.
The U.S. Department of Justice 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 from Jan. 1, 2006 to 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.