Bank Settles With Feds Over Improper Loan Allegations

Jul 1, 2014

Federal prosecutors in Cleveland say U.S. Bank National Association has agreed to pay 200 million dollars to settle allegations it failed to check on the credit-worthiness of thousands of applicants when it issued government-insured mortgage loans between 2006 and 2011.

A statement of facts included with the settlement says the bank also failed to properly audit its portfolio of insured loans, instead mixing them with noninsured loans in its report to the U.S. Department of Housing and Urban Development.