RBS Financial agrees to $42 million Nevada settlement

RBS Financial Products Inc., of Stamford, Conn., has agreed to pay a $42 million settlement to end an investigation by the Nevada attorney general's office of its role in buying and securitizing subprime mortgages.

Attorney General Catherine Cortez Masto said the money will be used for payments to affected borrowers, as well as mortgage fraud enforcement and foreclosure prevention programs.

"The payment from RBS will alleviate some of the injury to the Silver State and its residents," Masto said. "The changes to its securitization process should help make sure that we do not go down this road again."

Masto said the two-year investigation focused on misrepresentations by lenders to Nevada consumers who took subprime loans and adjustable rate mortgages that were bought and securitized by RBS between 2004 and 2007.

Under the settlement announced late Wednesday, RBS neither admits nor denies wrongdoing.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.


Rules for posting comments

Comments posted below are from readers. In no way do they represent the view of Stephens Media LLC or this newspaper. This is a public forum. Read our guidelines for posting. If you believe that a commenter has not followed these guidelines, please click the FLAG icon next to the comment.


Due to an increase in uncivil behavior and dialogue the Review-Journal has temporarily disabled the comment boards. The Review-Journal will use the time to evaluate the effectiveness of the comment boards and find an appropriate time to reintroduce them to reviewjournal.com.