Search Results: FHA

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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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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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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DOJ Settles Mortgage Discrimination Lawsuit Against National Bank for $54 Million

On January 20, the  U.S. Attorney’s Office for the Southern District of New York (USAO) announced that it had settled a recently-filed lawsuit against a national bank, resolving allegations of mortgage discrimination. As previously covered by Enforcement Watch, the government alleged that from 2006 to 2009, the bank charged minority borrowers higher rates…

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DOJ Files Lawsuit Against Minnesota Bank Over Alleged Minority Redlining Practices

On January 13, 2017, the Department of Justice (“DOJ”) announced that it had filed a lawsuit against a Minnesota bank, stemming from allegations that the bank engaged in illegal “redlining” of minority neighborhoods in the Minneapolis-St. Paul metropolitan area. The DOJ alleged in its complaint that the bank violated the Fair…

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Jury Issues $92 Million Verdict Under the False Claims Act Against Mortgage Companies and CEO

On November 30, 2016, the U.S. Attorney for the Southern District of Texas announced that a federal jury in the Southern District of Texas issued a verdict finding several related mortgage companies and their CEO liable in connection with their participation in the Federal Housing Administration (FHA) mortgage insurance program.  The verdicts were the result of…

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Another Mortgage Lender Settles with DOJ Over Alleged FHA Insurance Fraud

On October 19, 2016 the U.S. Attorney’s Office (USAO) announced that it had settled with a Massachusetts-based mortgage lender and its CEO for $1,025,000 to resolve allegations that the mortgage lender submitted false insurance claims on mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA).  The USAO…

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HUD OIG Announces PFCRA Settlement with FHA Lender

On September 29, 2016, the U.S. Department of Housing and Urban Development (HUD) and its Office of Inspector General (HUD OIG) announced a settlement with a mortgage lender relating to two audits of the lender’s Federal Housing Administration (FHA) insured loans. The audits allegedly determined that the lender underwrote FHA-insured loans with…

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HUD/DOJ Settle with FHA Mortgage Lender for $52.4 Million Over Alleged False Claims Act Violations

On September 13, 2016, the Department of Justice (“DOJ”) announced a settlement agreement with a bank for allegedly violating the False Claims Act by improperly underwriting and originating of FHA-insured mortgage loans. According to the DOJ, from January 1, 2006 to December 31, 2011, the lender was improperly underwriting and certifying that mortgage loans…

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DOJ Files Suit Against California Lenders Alleging Discriminatory Loan Modification Scheme

On August 23, 2016, the Department of Justice (DOJ) announced the filing of a lawsuit in the United States District Court for the Northern District of California against several California-based mortgage loan modification service providers.  The complaint alleges that defendants violated the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA)…

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CFPB and DOJ Propose $10.6 Million Settlement in Discriminatory Lending Action

On June 29, the Consumer Financial Protection Bureau (CPPB) and Department of Justice (DOJ) announced a joint enforcement action against a regional bank for alleged discriminatory mortgage lending in violation of the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA), filed in the District Court for the…

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