Moody’s Investor Services Inc. and some Moody’s affiliates have agreed to settle allegations of misleading investors about mortgage-backed securities.

The Department of Justice and attorneys general in 20 states have reached a settlement with the New York-based organization for $864 million.

Litigation against Moody’s accuses the ratings agency of allowing its MBS ratings to be influenced by fees it received from banks that it worked for.

Source: Mortgage Daily