RBC Mortgage Co. subsidiary of Royal Bank of Canada: Update

Royal Bank of Canada’s subsidiary RBC Mortgages Co., have agreed to pay the U.S. in access of $10.7 million in a settlement regarding allegations that the mortgage company falsified loan documents, according to the Justice Department.

The allegations were made on 219 federally insured loans for mortgages submitted to the Federal Housing Administration of the Department of Housing and Urban Development between 2001 and 2005.
The government allegations against RBC Mortgages included improperly submitted loans that were not eligible for FHA insurance, violated due diligence underwriting requirements and falsified documents to support loan application.

No immediate announcements were made by the Royal Bank of Canada at the matter.
The mortgage company also has agreed to pay $264,000 to settle administrative claims for 39 federally insured loans.

Source: forbes