Merrill Lynch Settles RMBS Charges for $15.7M – NMP Skip to main content

Merrill Lynch Settles RMBS Charges for $15.7M

Jun 12, 2018
The Securities and Exchange Commission (SEC) has reached a $15.7 million settlement with Merrill Lynch, Pierce, Fenner & Smith Inc.

The Securities and Exchange Commission (SEC) has reached a $15.7 million settlement with Merrill Lynch, Pierce, Fenner & Smith Inc. that resolves charges that the company misled customers into overpaying for Residential Mortgage-Backed Securities (RMBS).
 
As part of the agreement, Merrill Lynch will repay more than $10.5 million to its customers and approximately $5.2 million to pay civil penalties. The settlement does not require Merrill Lynch to acknowledge or deny the charges, which include allegations that Merrill Lynch’s RMBS traders and salespersons illegally profited from excessive, undisclosed commissions that were often twice the price that customers should have paid.
 
“In opaque RMBS markets, lying to customers about the acquisition price can deprive investors of important information,” said Daniel Michael, Chief of the SEC Enforcement Division’s Complex Financial Instruments Unit. “The Commission found that Merrill Lynch failed in its obligation to supervise traders who allegedly used their access to market information to take advantage of the bank’s own customers.”

 
About the author
Published
Jun 12, 2018
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026