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 Developmentā€™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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