Barclays Bank PLC will pay $36.1 million for its alleged role in the state’s subprime mortgage crisis, Attorney General Martha Coakley said Monday, in a settlement that will help 450 Massachusetts homeowners.
The bulk of the settlement, $25 million, will come in the form of reduced loan principal for eligible homeowners. Barclay’s will also pay $7 million to the state, $2 million to cities and towns hard hit by foreclosures, and $1 million to nonprofits assisting families affected by foreclosure.
Barclays is the fourth investment firm to settle with Coakley since 2009 for “presumptively unfair” practices in financing, purchasing, and bundling home mortgages. Many of these loans were doomed to fail, because they were approved for borrowers unlikely to pay them back, Coakley’s office said. Full story for BostonGlobe.com subscribers.