Royal Bank of Scotland (RBS) will pay $42 million to settle a probe by Nevada’s attorney general into its mortgage-purchase practices before the housing crisis.

The investigation examined whether the $2.2 billion-asset bank knew that lenders such as Countrywide Financial and Option One Mortgage allegedly misled borrowers who took out subprime loans and adjustable-rate mortgages that RBS later bought and sold, Attorney General Catherine Cortez Masto said Wednesday. The loans in question were made over a three-year period beginning in 2004.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.