Flagstar Bancorp in Troy, Mich., has resolved a longstanding issue with the Justice Department.

The $31 billion-asset company disclosed in a regulatory filing Tuesday that it agreed to pay $70 million in cash to fully address a settlement it reached with the government in 2012. The company will record a $35 million charge in the first-quarter to account for the payment.

The settlement involved Flagstar’s underwriting practices tied to loans insured by the federal Department of Housing and Urban Development. In 2012, the company entered a deal with the Justice Department where it made an initial $15 million payment and it agreed to make future payments totaling $118 million. The timing of the payments was dependent on Flagstar’s financial performance and other conditions.

Flagstar did not specify how much of the $118 million it eventually paid, though it said in the filing that its current strength positioned it to fully resolve the matter.

Flagstar “is benefiting significantly from a robust mortgage market,” Tuesday’s filing said. “In light of the long-standing relationship and ongoing business activities with HUD, the company decided to settle this legacy liability.”

Piper Sandler analyst Scott Siefers noted that the liability dates back to a prior management team.

The charge “seems reasonable … given that we expect [Flagstar] to generate over $200 million in mortgage” revenue in the first quarter, Siefers wrote in a client note. “We like that it resolves a complex issue.”