Tagged as: DOJ

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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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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Fifth California Resident Sentenced for Participation in Debt Relief Scheme

On November 21, 2016, the U.S. Department of Justice (DOJ) and U.S. Postal Inspection Service announced that an individual defendant was sentenced for his participation in an allegedly fraudulent debt relief scheme.  The defendant worked for two companies in Orange County, California that offered to settle credit card debts.  According to…

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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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FHA Lender Settles False Claims Act Allegations for $113 Million

On April 15, the U.S. Department of Justice (DOJ) announced that a mortgage company settled claims it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that failed to comply with certain requirements for the FHA insurance program. The settlement…

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