CARSON CITY, Nev. (AP) — RBS Financial Products has agreed to pay a $42 million settlement to end an investigation of its role in buying and securitizing subprime mortgages that added to Nevada's housing meltdown.

Attorney General Catherine Cortez Masto says the money will be used for payments to affected borrowers, as well as mortgage fraud enforcement and foreclosure prevention programs.

Masto says a two-year investigation focused on misrepresentations by lenders to Nevada consumers who took out subprime loans and adjustable rate mortgages that were bought and securitized by RBS between 2004 and 2007.

She says the probe involved whether lenders deceived borrowers about interest rates and payments, the appraised value of their property and potential payment shock when initial teaser rates on their mortgages expired.

Under the settlement, RBS neither admits nor denies wrongdoing.