Massachusetts: Barclays to pay $36M over loans
BOSTON (AP) — The state of Massachusetts says Barclays Bank PLC has agreed to pay $36.1 million to settle allegations it backed subprime home loans it knew were risky.
Attorney General Martha Coakley says the settlement filed in court Monday includes more than $25 million for reduction of principal and other relief for more than 450 subprime borrowers.
Those borrowers had loans securitized by Barclays in 2006 and 2007 with features such as “teaser” interest rates, high debt-to-income ratios and high loan-to-value ratios. Coakley said most are in Boston, Brockton, Lawrence, Lowell, Lynn, New Bedford, Springfield and Worcester.
The remaining settlement funds go to the state, communities affected by loan foreclosures and nonprofits involved in foreclosure relief.
Barclays says it is pleased to resolve the matter.