According to the SEC: "This case concerns the fraudulent sale of residential mortgage-backed securities ('RMBS') by Option One. Option One was one of the country's largest subprime lenders. In its fiscal year 2006, Option One originated nearly $40 billion in subprime mortgage loans. From on or about January 24, 2007 through March 12, 2007, Option One sponsored over $4.3 billion of RMBS in seven separate offerings."

The Litigation Release stated that: "the SEC alleges that between January and March 2007, Option One offered and sold more than $4.3 billion of RMBS in seven separate offerings. RMBS are debt obligations that represent claims to the cash flows from pools of residential mortgage loans. According to the SEC's complaint, Option One misled investors in its RMBS by promising to repurchase or replace mortgages in its RMBS that breached representations and warranties. These promises were rendered misleading by Option One's failure to disclose that its financial condition was significantly deteriorating and it could not meet its repurchase obligations on its own. The SEC further alleges that at the time Option One offered and sold the RMBS, it needed to rely on voluntary financial support from Block to meet its financial obligations but that Block was under no obligation to continue providing that financing. Option One never disclosed this information to investors."

On April 26, 2012, Federal District Judge entered final judgment as to Option One Mortgage Corporation pursuant to the SEC and Option One's consent.