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Items Tagged with 'False Claims Act'

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Monday Morning Cup of Coffee: Trump tapping familiar face to lead DOJ's civil division?

What will become of False Claims Act charges under new leader?
It looks like President Donald Trump is about to install a familiar face as the leader of the Department of Justice’s civil division. If that happens, what happens to the DOJ's recently preferred tactic of using the False Claims Act to extract settlements from lenders for supposedly misrepresenting the quality of loans to the Federal Housing Administration? The answer, and more, in your Monday Morning Cup of Coffee.
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Quicken Loans begins long journey with DOJ over FHA violation charges

Will the case ever be dismissed?
Monday marked the first of what will likely be many hearings between Quicken Loans and the Department of Justice before a U.S. district judge over FHA lending violation charges. If the first hearing on Quicken Loans’ request to have the case dismissed is denied, the trial will begin in a little more than two years. Here's an update to one of the biggest wars brewing in mortgage finance.
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Franklin First Financial fined $1.25 million for FHA loan violations

Allegedly concealed default rates by paying borrowers’ mortgages for them
Franklin First Financial is set to join a list of mortgage lenders that settled with the Department of Justice for violating Federal Housing Administration lending standards, but unlike Wells Fargo, Walter Investment, and a host of others, Franklin First isn’t settling allegations. Rather, the government accused Franklin First of paying borrowers mortgages to keep them from defaulting, thereby concealing the lender’s default rates.
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United Shore lands on DOJ hit list, will pay $48M for FHA lending violations

Next in long line of lenders accused of violating False Claims Act
United Shore Financial Services will pay $48 million to settle allegations brought by the Department of Justice, which accused United Shore of violating the False Claims Act by “knowingly originating and underwriting” mortgages that did not meet FHA standards. The settlement makes United Shore just the latest in a long line of mortgage lenders that settled with the DOJ over alleged FHA lending violations.
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First American Mortgage Trust to pay $1 million for FHA lending violations

NTXLoan.com accused of knowingly submitting false claims for FHA insurance
First American Mortgage Trust, which does business as NXTLoan.com, and the company’s CEO will pay slightly more than $1 million to settle charges brought by the Department of Justice, which accused the lender of submitting false claims on mortgages insured by the Federal Housing Administration.
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BB&T to pay $83 million for FHA lending violations

Latest lender to be accused of violating False Claims Act by DOJ
BB&T will pay $83 million to settle allegations brought by the Department of Justice, which accused the lender of violating the False Claims Act by falsely certifying that it complied with “critical underwriting and quality control requirements” on mortgages insured by the Federal Housing Administration. BB&T becomes the latest in a long string of lenders targeted by the DOJ for False Claims Act violations.
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Regions Bank next on DOJ hit list, will pay $52.4 million for FHA-lending violations

Becomes latest lender to be accused of violating False Claims Act
Over the last few years, the Department of Justice used the False Claims Act as its weapon of choice against the mortgage industry, using the law to extract settlements from lenders for supposedly misrepresenting the quality of loans to the Federal Housing Administration. And now, Regions Bank is the latest on the DOJ’s hit list, after agreeing to settle False Claims Act charges for $52.4 million.
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Guild Mortgage becomes DOJ's latest target over alleged FHA-lending violations

Lender says it plans to fight back against allegations of False Claims Act violations
Over the last several years, lenders like Wells Fargo, Franklin American Mortgage, Walter Investment, First Tennessee Bank, Freedom Mortgage and M&T Bank chose to settle with the Department of Justice after being accused of originating and underwriting mortgage loans that did not meet Federal Housing Administration standards. Now, Guild Mortgage is next on the DOJ’s hit list, but the lender says it plans to fight back.
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