Nomura Holdings (NMR) and The Royal Bank of Scotland (RBS) have agreed to a settlement in federal court to pay $839 million over the sale of mortgage-backed securities.

Both banks were found guilty in May by U.S. District Judge Denise Cote in Manhattan after a non-jury trial and were directed to pay $806 million including $26.6 million to Fannie Mae and $779.4 million to Freddie Mac.

"The offering documents did not correctly describe the mortgage loans," the judge said in his lengthy, 361-page decision. "The magnitude of falsity, conservatively measured, is enormous."

Nomura and RBS denied the FHFA’s allegations at the time of the verdict.

The two banks will be paying an additional $33 million more than the $806 million that they were ordered to pay by a federal judge in May 2015 over misrepresentation of documents in selling the mortgage bonds.

The settlement also covers the Federal Housing Finance Agency’s legal costs. The agreement was disclosed last week in a New York federal court.

FHFA accused the two banks of providing bad information about mortgages sold to Freddie Mac and Fannie Mae. FHFA said the banks provided misleading details about $2 billion in mortgage backed securities.

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