Barclays to Pay $2B to Settle RMBS Case – NMP Skip to main content

Barclays to Pay $2B to Settle RMBS Case

Mar 29, 2018
ZeroDown, a San Francisco-headquartered startup that aims to helps potential homebuyers to acquire property without making a downpayment, has closed more than $100 million of debt capital from Credit Suisse

Barclays Capital Inc. has agreed to a $2 billion settlement of federal charges related to the company’s underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. 
 
The civil action, which was filed in 2016, capped a three-year investigation by the federal government, which alleged Barclays violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) by causing billions of dollars in losses to investors through the sale of 36 RMBS deals, and that it misled investors about the quality of the mortgages backing those deals.
 
The Justice Department also reached a settlement with two former Barclays executives who were named as defendants in the suit:  Paul K. Menefee, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, who served as Barclays’ head trader for subprime loan acquisitions. The pair agreed to pay a $2 million settlement in exchange for dismissal of the claims against them.

 
About the author
Published
Mar 29, 2018
West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Oct 27, 2026