BIRMINGHAM, Ala. – Regions Financial Corporation (NYSE:RF) today announced that is has reached a settlement with the United States Department of Justice and on behalf of the Department of Housing and Urban Development (HUD) to resolve a previously disclosed inquiry related to residential mortgage loan origination, underwriting and quality control practices for loans insured by the Federal Housing Administration.
The company fully cooperated with the inquiry and has agreed to a $52.4 million settlement, without admitting liability, in order to avoid the expense of potential litigation. Regions established and previously disclosed reserves sufficient to cover this matter; therefore, this settlement will not have a material impact on Regions’ financial condition or results of operations.
Regions is pleased to resolve this inquiry and is committed to maintaining fair, consistent and accurate loan origination practices.