On June 1, 2015, the Department of Justice announced a settlement with a regional bank over allegations that the bank originated and underwrote mortgage loans that did not meet applicable requirements of the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) insurance program. The settlement was previously…
The U.S. Department of Housing and Urban Development (HUD) announced that it reached a settlement agreement with a regional bank over a disparate treatment fair housing claim. HUD alleged that the bank engaged in racially discriminatory redlining by lending less in majority-minority census tracks than in other neighborhoods. Under the…
Beginning with its next sale in June 2015, HUD will have new, stricter requirements for entities that purchase distressed loans as part of the Distressed Asset Stabilization Program (“DASP”), a development we initially covered here. Initially conceived as a way to lower losses suffered by the FHA from troubled loans,…
On April 24, 2015, the U.S. Department of Housing and Urban Development (HUD) announced that it would reform its Distressed Asset Stabilization Program (DASP), requiring purchasers to take stronger steps to ensure that homeowners are given further options to avoid foreclosure. DASP was set up in 2010, to pool distressed…
On April 2, 2015, a regional bank reached an agreement in principle to settle allegations brought by the U.S. Department of Justice (DOJ) and U.S. Department of Housing and Urban Development (HUD) relating to its former subsidiary’s issuance of mortgage loans insured by the Federal Housing Administration (FHA). The DOJ…
On December 31, 2014, the U.S. Department of Housing and Urban Development entered into a settlement agreement with New York-based Golden First Mortgage Corporation and its president and owner, David Movtady, concerning allegations that Golden First and Movtady violated the False Claims Act by approving FHA mortgage loans that failed…
Recent indications from the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General (OIG), and quarterly SEC filings by lenders of FHA mortgages, strongly suggest that HUD’s aggressive enforcement actions against FHA lenders over the past few years are likely to continue in the New Year. Lenders…
On November 3, 2014, Judge Richard J. Leon of the U.S. District Court for the District of Columbia struck down the U.S. Department of Housing & Urban Development’s (HUD) March 2013 much-discussed disparate impact rule. In American Insurance Association, et al. v. United States Department of Housing & Urban Development, et…