Mortgage

Golden First Mortgage Corp. pays $36M for mortgage fraud lawsuit

Firm's former president also has to pay $300,000

Golden First Mortgage Corp. agreed to a $36 million judgment to resolve claims that it approved bad loans costing the government millions of dollars when they inevitably defaulted.

The company’s owner, operator and president from 1979 until 2010, David Movtady, also agreed to a $300,000 payment, accepting responsibility for conduct alleged in the complaint.  

In addition, Movtady will be permanently barred from conducting any business with the federal government.

Preet Bharara, the United States attorney for the Southern District of New York, said the mortgage company violated the False Claims Act for years of misconduct in connection with the lender’s participation in the Federal Housing Administration’s Direct Endorsement Lender Program.

Specifically, they were charged with failing to maintain a compliant quality control program and therefore did not conform to all U.S. Department of Housing and Urban Development and FHA regulations applicable to the Direct Endorsement Lender Program.

“This settlement holds Golden First and its owner, David Movtady, accountable for lying to the government about compliance with HUD requirements and approving bad loans. This type of conduct costs the United States millions of dollars when the loans inevitably default, and this office is committed to snuffing it out,” Bharara said. 

Most Popular Articles

3 housing trends to watch for in 2020

The year 2020 is now upon us, and as we say goodbye to 2019, we welcome a new decade and all the twists and turns it will bring for the housing industry.

Dec 02, 2019 By

Latest Articles

When it comes to their home, Millennials are picky

According to a new data set from the National Association of Home Builders, Millennials care just as much (if not more) about they want in a house rather than what they need.

Dec 05, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please