Regions Bank to pay $52.4 million to resolve mortgage allegations

September 13, 2016 11:45 AM EDT

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WASHINGTON (Reuters) - Regions Bank, a subsidiary of Regions Financial Corp (NYSE: RF), has agreed to pay $52.4 million to the U.S. government to resolve allegations it made mortgage loans that did not meet federal requirements, the Justice Department said on Tuesday.

The Birmingham, Alabama-based bank had allegedly violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA) that did not meet applicable requirements, the department said in a statement.

(Reporting by Eric Walsh; Editing by James Dalgleish)

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