Royal Bank of Scotland 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.

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