Items Tagged with 'Department of Justice'

ARTICLES

  • CEO of banned lender Seckel Capital charged with lying to HUD

    John Seckel accused of making false statements to HUD about company’s finances
    Back in July, HUD banned mortgage lender Seckel Capital from originating or underwriting FHA-backed mortgages after an investigation found that company repeatedly lied to the FHA about its financials. As part of the action, HUD also suspended the company’s owner and CEO, John Seckel, from doing business with the federal government. As it turns out, the government isn’t done with Seckel yet.
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  • DOJ investigating FHA lending practices of Lennar subsidiary Eagle Home Mortgage

    Homebuilder discloses investigation in SEC filing
    Eagle Home Mortgage, the mortgage lending subsidiary of Lennar, could find itself on a list that includes Wells Fargo, Walter Investment, United Shore Financial Services, PHH, and many other lenders that were sanctioned by the government for underwriting mortgages that did not meet Federal Housing Administration standards.
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  • False Claims Act claims another one: IBERIABANK fined $11.7 million for FHA lending violations

    Becomes latest in string of FHA lenders fined by government
    The False Claims Act has claimed another lender. On Friday, the DOJ announced that IBERIABANK Corporation, IBERIABANK and IBERIABANK Mortgage, agreed to pay a fine of $11,692,149 to resolve allegations that the companies violated the False Claims Act by falsely certifying that loans originated by the companies were eligible for FHA mortgage insurance.
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  • DOJ suing Northwest Trustee Services for illegally foreclosing on veterans

    Claims foreclosure trustee violated Servicemembers Civil Relief Act
    “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our service members do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures,” U.S. Attorney Annette Hayes said.
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  • Carson: HUD working with DOJ on easing enforcement of FHA lending

    Review FHA lender certifications and implementation of defect taxonomy
    Speaking Monday during the morning general session at the Mortgage Bankers Association Annual Conference in Denver, HUD Secretary Ben Carson told attendees that HUD is working with the Department of Justice to address the rise of DOJ enforcement in Federal Housing Administration lending. Then Carson did what normally doesn’t happen in speeches like these: He made an announcement.
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  • Carson: Government considering ending use of False Claims Act against FHA lenders

    Tells Congress that administration is discussing “ridiculous” rise of FCA charges
    The government’s proclivity to use the False Claims Act as a weapon against mortgage lenders could soon be coming to an end, Department of Housing and Urban Development Secretary Ben Carson told members of Congress on Thursday. "We’re committed to getting that resolved, because it’s ridiculous, quite frankly,” Carson said of the rise of the False Claims Act.
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  • Mortgage company founder admits to defrauding Ginnie Mae out of $2.5 million

    Former president of Mortgage Security Inc. admits to diverting mortgage funds
    The founder and president of a defunct Massachusetts mortgage company pleaded guilty this week to defrauding Ginnie Mae out of approximately $2.5 million. Beginning in 2011, Robert Pena, the founder and president of Mortgage Security Inc., allegedly began diverting money that borrowers sent to MSI into private bank accounts, which he then used to pay for personal and business expenses.
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  • Department of Justice launches initiative to fight sexual harassment in housing

    Program will be piloted in Washington, D.C. and western Virginia
    The Department of Justice announced Tuesday that it is launching a new initiative to fight sexual harassment in housing. Specifically, the DOJ said the program aims to increase the department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners.
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  • Residential Home Funding Corp. admits to FHA mortgage fraud; agrees to pay $1.67 million

    Settles lawsuit brought by Department of Justice
    Residential Home Funding Corp., a mortgage lender based in New York, committed Federal Housing Administration mortgage fraud by falsely certifying that certain loans qualified for FHA mortgage insurance, the company admitted in court this week. Residential Home Funding's admittance came as part of a settlement with the Department of Justice, which will see the lender pay a fine of $1.67 million for its actions.
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