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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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Reverse Mortgage Servicer Settles Alleged FCA Violations with DOJ for $4.25 Million

On December 21, 2018, the U.S. Department of Justice (DOJ) announced a settlement with a mortgage servic​er for $4.25 million, resolving allegations of unlawful reverse mortgage servicing practices. According to the DOJ, the company violated the False Claims Act with respect to its servicing of reverse mortgages, or Home Equity Conversion Mortgage (HECM)…

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DOJ Announces $14.5 Million Settlement in False Claims Act Suit Against FHA Lender

On December 12, 2018, the U.S. Department of Justice announced a $14.5 million settlement of a whistleblower suit alleging False Claims Act violations against a lender who endorsed loans for insurance by the Federal Housing Administration (“FHA”).  The settlement resolves an investigation triggered by a qui tam lawsuit filed by a former employee of the…

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DOJ Investigates FHA Loans Issued by Florida-Based Mortgage Subsidiary

On January 25, 2018, a Florida-based homebuilder filed its Form 10-K annual report with the Securities and Exchange Commission (SEC), disclosing that its “mortgage subsidiary has been subpoenaed by the United States Department of Justice (DOJ) regarding the adequacy of certain underwriting and quality control processes related to Federal Housing Administration (FHA)…

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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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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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