(Adds details, bank comments, shares)
June 30 (Reuters) - U.S. Bank, a part of U.S. Bancorp , will pay $200 million to resolve allegations that it certified home loans for government insurance even though they did not meet regulatory requirements, the U.S. Justice Department said.
U.S. Bank admitted that between 2006 and 2011, it certified for Federal Housing Administration insurance mortgage loans that did not meet U.S. Department of Housing and Urban Development requirements, the Justice Department said on Monday. (1.usa.gov/1meeTvY)
“By misusing government programs designed to maintain and expand homeownership, U.S. Bank not only wasted taxpayer funds, but inflicted harm on homeowners and the housing market that lasts to this day,” said Stuart Delery, assistant attorney general for the Justice Department’s Civil Division.
U.S. Bank said it settled with the Justice Department to avoid costly and protracted litigation.
U.S. Bancorp’s shares were little changed at $43.41 in afternoon trading on the New York Stock Exchange on Monday. The stock has risen about 7 percent this year. (Reporting by Aruna Viswanatha in Washington and Neha Dimri in Bangalore; Editing by Doina Chiacu and Kirti Pandey)