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NY-Based Bank Settles Federal Probe

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.

A bank spokesman says M&T decided to settle the matter without admitting liability to avoid potentially expensive litigation.

Copyright 2016 by the Associated Press.

Dave Lucas is WAMC’s Capital Region Bureau Chief. Born and raised in Albany, he’s been involved in nearly every aspect of local radio since 1981. Before joining WAMC, Dave was a reporter and anchor at WGY in Schenectady. Prior to that he hosted talk shows on WYJB and WROW, including the 1999 series of overnight radio broadcasts tracking the JonBenet Ramsey murder case with a cast of callers and characters from all over the world via the internet. In 2012, Dave received a Communicator Award of Distinction for his WAMC news story "Fail: The NYS Flood Panel," which explores whether the damage from Hurricane Irene and Tropical Storm Lee could have been prevented or at least curbed. Dave began his radio career as a “morning personality” at WABY in Albany.
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