May 13, 2016 - 9:15 AM
ALBANY, N.Y. - Federal authorities say M&T Bank has agreed to pay $64 million to resolve allegations that it knowingly produced mortgage loans that were federally insured but didn't meet the applicable requirements.
In the settlement announced Friday by the U.S. attorney's office, the Buffalo, New York-based bank acknowledges that from 2006 to 2011 it certified mortgage loans for Federal Housing Administration insurance that didn't meet Department of Housing and Urban Development underwriting and FHA quality control requirements.
According to federal prosecutors, HUD incurred "substantial losses" when it paid insurance claims.
Bank spokesman C. Michael Zabel says the bank decided to settle the matter without admitting liability to avoid potentially expensive litigation.
He says the settlement won't have a material impact on M&T's financial condition or operations.
News from © The Associated Press, 2016