Search Results: HUD

HUD Reaches Settlement with Mortgage Originator for Alleged Lending Discrimination

​On June 2, 2022,​ the U.S. Department of Housing and Urban Development (HUD) announced it reached a settlement agreemen​t with a non-bank residential mortgage lender to resolve allegations of race-based lending discrimination in violation of the Fair Housing Act (FHA), 42 U.S.C. 3601 et seq.  The settlement arose from a complaint filed ​with a fair…

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HUD Approves Settlement with Mortgage Lender Resolving Claims of Lending Discrimination

On March 19, 2021, the U.S. Department of Housing and Urban Development (HUD) announced ​that it approved a settlement with a national mortgage lender concerning allegations that the mortgage lender discriminated against a consumer in violation of the Fair Housing Act (FHA) when it denied the consumer’s mortgage loan application. The consumer filed a complaint with HUD…

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HUD Approves Conciliation Agreement with National Mortgage Lender Resolving FHA Violations

On March 8, 2021, the U.S. Department of Housing and Urban Development (HUD) announced​ that it had approved a conciliation agreement between a national mortgage lender and an African-American woman (the Complainant), resolving allegations that the mortgage lender provided an inaccurate appraisal of the Complainant’s home due to her race in violation of the Fair…

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U.S. Department of Justice Announces $24.9 Million Settlement With National Mortgage Company Resolving False Claims Act Allegations

On October 22, 2020, the Department of Justice (DOJ) announced that it had reached a settlement with a San Diego-based national mortgage lender, resolving allegations that the company had originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) without following program…

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DOJ Announces $15 Million Settlement with Mortgage Originator Over Alleged FCA Violations

On April 29, the Department of Justice (DOJ) announced that it settled allegations that an Illinois-based mortgage lender violated the False Claims Act (FCA), the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), and Program Fraud Civil Remedies Act (PFCRA) ​by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance…

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DOJ Settles False Claims Act Allegations Against Reverse Mortgage Lender for $2.47 Million

​On March 31, 2020, the U.S. Department of Justice (DOJ) announced that it had entered into a $2.47 million settlement agreement with a national reverse mortgage lender in order to resolve allegations that the bank’s predecessor entity had failed to meet the Department of Housing and Urban Development’s (HUD) criteria in originating and…

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US Attorney Reaches $3.67 Million False Claims Act Settlement with California-Based Mortgage Company Concerning FHA Loans

On February 13, 2019, the U.S. Attorney for the Eastern District of California announced an agreement with a California-based mortgage company to resolve alleged violations of the False Claims Act (FCA). The U.S. Attorney’s Office alleges that between April 2007 and June 2009, the mortgage company underwrote and originated 16 loans…

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DOJ Settles With Mortgage Lender for $11.7 Million for FHA Mortgages

On December 8, the U.S. Department of Justice (DOJ) announced that it had settled allegations that a Louisiana-based mortgage lender violated the False Claims Act (FCA) through its underwriting of Federal Housing Administration (FHA)-insured mortgage loans.  In the lawsuit, which is pending in the U.S. District Court for the Eastern District of Arkansas, the…

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National Mortgage Lender Pays $1.6 Million to Federal Government to Settle False Claims Act Allegations

On September 28, 2017, the United States Attorney’s Office for the Southern District of New York (USAO), along with the U.S. Department of Housing and Urban Development (HUD) and HUD’s Office of the Inspector General (HUD-OIG), announced that they had reached a settlement with a national mortgage lender over alleged…

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Court Awards Nearly $280 Million in Treble Damages Against Former FHA Lender

On September 14, 2017, the U.S. District Court for the Southern District of Texas issued an opinion and order against two former mortgage companies and their former president and CEO.  The order, which followed a previous jury verdict against the company, awarded the Government nearly $280 million in treble damages under the False Claims Act (FCA), approximately $13 million…

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Q2 2017 Sees Significant Decrease In Civil Penalties and Consumer Relief

In the second quarter of 2017, Consumer Enforcement Watch tracked 40 enforcement actions taken against consumer financial service providers. This represents a marginal decrease from the 46 enforcement actions taken against consumer financial service providers that we tracked last quarter, and from the 46 enforcement actions tracked in the second…

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US Attorney Announces Settlement with Florida Condominium Complex Over Alleged FHA Reverse Mortgage Fraud

On July 20, 2017, acting United States Attorney Stephen Muldrow announced a civil settlement with the owner of a Florida condominium complex over fraudulent reverse mortgage transactions.  Defendant had been accused of violating the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”). The Federal…

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HUD Bans Mortgage Lender from Originating FHA-Insured Loans Because of False Financial Statements

​On July 11, 2017, the United States Department of Housing and Urban Development (HUD) announced​ that its Mortgagee Review Board had suspended a national mortgage lender from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA).  ​HUD’s Departmental Enforcement Center also banned the lender’s owner from doing business with the federal…

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Mortgage Lender Pays $4.157 Million to Settle False Claims Act Allegations Concerning FHA Loans

​On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s Office for the Northern District of California announced that they had reached a settlement with a national mortgage lender, resolving…

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Reverse Mortgage Servicer to Pay $89 Million to Resolve False Claims Act and FIRREA Claims

On May 16, 2017, the U.S. Department of Justice (“DOJ”) announced that it had reached a settlement with a company engaged in reverse mortgage servicing, in connection with the company’s participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage (“HECM”) program, which offers senior citizens reverse mortgages insured by the Federal Housing Administration…

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HUD Reaches $1 Million Settlement with Illinois Bank Over Redlining Allegations

On March 10, 2017, the Department of Housing and Urban Development (“HUD”) announced that it reached a settlement with an Illinois bank resolving allegations that the bank engaged in illegal “redlining” of minority neighborhoods in the Rockford, Illinois metropolitan area. HUD initiated its investigation after the Hope Fair Housing Alliance (“Hope”)…

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