H&R Block Unit Pays Out $28M Over Alleged MBS Fraud

Law360, New York (April 24, 2012, 7:33 PM EDT) -- H&R Block Inc.'s mortgage banking unit agreed Tuesday to pay $28.2 million to settle claims by the U.S. Securities and Exchange Commission that it lied to securities investors about its ability to buy back toxic loans.

Option One Mortgage Corp. falsely assured investors during the 2007 housing collapse that it had the financial wherewithal to meet repurchase obligations on more than $4 billion in residential mortgage-backed securities the company sponsored, according to the SEC, which filed and settled a California federal complaint on Tuesday.

The company...
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