UBS Bank.

The bank UBS has agreed to a $230 million settlement in connection with its handling of residential mortgage-backed securities leading up to the financial crisis, the office of Attorney General Eric Schneiderman announced Wednesday.

According to the AG's Office, $189 million of the settlement has been flagged for consumer relief for homeowners and communities, including affordable housing construction, with the remaining $41 million going into state coffers. With UBS' settlement, Schneiderman said his office has now recovered more than $3.93 billion in cash and consumer relief from RMBS settlements, more than any other state.

“Years later, New Yorkers are still recovering from the housing crash, as communities grapple with the effects of plummeting home values, vacant properties, and an affordable housing crisis,” Schneiderman said in a statement. “Today's settlement marks another key step forward as New Yorkers rebuild their lives and communities. The dollars we've secured have funded critical housing programs across New York—and this settlement means even more community revitalization work in the years to come.”

According to Schneiderman's office, the investigation into UBS found that the bank sold investors securities based on inaccurate information, despite claims to the contrary. The mortgages themselves were out of compliance with underwriting guidelines and other regulations, and would go on to prove poisonous when pooled, leading to billions in collateral losses, the AG's Office said.

UBS limited its diligence work on the loans sold by the originators, admitting that securities were created with loans for which no diligence was performed. Despite numerous issues with the loans and their securitization, UBS continued to purchase and issue them to investors, according to Schneiderman's office.

UBS was represented by Sullivan & Cromwell partners Robert Giuffra Jr. and Justin DeCamp. Neither was able to comment on the settlement.

“We are pleased to have resolved this legacy RMBS matter from 2006-2007, for which UBS is fully provisioned. It was achieved with the best interests of shareholders in mind,” a UBS spokesman said in an email.