U.S. officials on Wednesday fined the Dutch bank ABN AMRO’s U.S. mortgage division $16.9 million, settling charges that the company made false claims on federally insured home loans.
The agreement, announced by the U.S. Attorney’s office and the U.S. Housing and Urban Development Department, was valued at $41 million. It was the largest monetary settlement of an enforcement action in the history of the Housing department’s Federal Housing Administration.
It includes the cash payment and requires that ABN AMRO Mortgage not submit hundreds of defaulted loans to housing department, saving the Federal Housing Administration insurance fund an estimated $24.4 million in losses.
The agreement settles allegations that ABN AMRO Mortgage made false certifications to the U.S. housing authorities connected with more than 28,000 federally insured mortgages. The government said 229 of those mortgages led to defaults and resulted in losses to the housing agency of $6.25 million.