A Royal Bank of Canada home mortgage unit will pay $11 million to resolve U.S. government claims it gave false information about borrowers' creditworthiness to the Department of Housing and Urban Development.

RBC Mortgage Co.'s accord avoids litigation in the case, said Randall Samborn, a spokesman for Chicago U.S. Attorney Patrick Fitzgerald. The government alleged that from 2001 to 2004, RBC Mortgage, formerly known as Prism Mortgage, made 219 loans based on false statements, all resulting in foreclosure.

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