Items Tagged with 'False Claims Act'

ARTICLES

  • 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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  • 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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  • PHH reaches $75 million settlement with DOJ over False Claims Act violations

    Whistleblower awarded $9 million
    PHH Corp. announced it settled with the U.S. Department of Justice to resolve issues over alleged False Claims act violations. PHH said it settled with the DOJ on behalf of the Department of Housing and Urban Development and separately with the DOJ on behalf of the U.S. Department of Veterans Affairs and the Federal Housing Finance Agency. The settlement resulted in PHH having to pay a whopping $75 million.
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  • Prospect Mortgage fined $4.16 million for crisis-era FHA lending violations

    DOJ sanctions lender for two branches’ activities from 2007-2009
    While most of the country spent the early part of this week consumed by fireworks and consuming copious amounts of hot dogs and hamburgers, one mortgage lender found itself joining a list that includes Wells Fargo, Walter Investment, Freedom Mortgage, and many more. On Monday, the Justice Department announced Prospect Mortgage will pay more than $4 million to settle allegations the company committed civil mortgage fraud by underwriting mortgages that did not comply with FHA standards.
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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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