On August 5, an Alabama bank announced in its quarterly report that it reached an agreement in principal on a settlement amount with the Department of Justice (DOJ) on behalf of the Department of Housing and Urban Development (HUD). The settlement will resolve an investigation into the bank’s residential mortgage loan origination, underwriting, and quality control practices for loans insured by the Federal Housing Administration (FHA). Settlement terms were not released as the settlement is subject to final review and approval by the DOJ.
Enforcement Watch has previously reported on several other DOJ settlements relating to FHA-insured mortgage loans this year, in the amounts of $64 million, $113 million, and $1.2 billion. Check back here for an update on the settlement details once they are released.