Items Tagged with 'False Claims Act'

ARTICLES

  • From HW Magazine

    FHA enforcement: What decreased reliance on the False Claims Act means for FHA lenders and servicers

    HUD officials looking to chart a new course
    Top officials at the U.S. Department of Housing and Urban Development are looking to chart a new course to win back banks that have fled the Federal Housing Administration lending program following a series of multimillion-dollar False Claims Act settlements.
    Read More
  • Trade groups cast doubt over FHA's attempt to remove lending roadblocks

    Letters to HUD say proposal "will not give lenders the assurance needed"
    In May, the FHA said it was working to clarify the rules of its mortgage program in an effort to ease compliance concerns, pledging to replace the “jumbled legalese” in its certification and compliance documents with “plain English.” But a number of trade groups expressed their joint belief that the proposed changes do not go far enough to ease compliance concerns and “will not give lenders the assurance needed to expand their program participation.” Here's what they recommend be done.
    Read More
  • Urban Institute to FHA: Want more lenders? Clarify False Claims Act enforcement

    Researchers propose ideas for greater clarity regarding False Claims violations
    Many lenders have pulled away from FHA lending in recent years – something the agency has taken steps to address by clarifying underwriting rules. But according to a recent blog post from the Urban Institute, the FHA has not gone far enough to quell lender fears about getting back into the business of FHA lending. The problem? Not enough clarity regarding what qualifies as a violation of the False Claims Act and what the penalties might be.
    Read More
  • Quicken Loans Vice Chairman Bill Emerson: Government used "extortionist tactics" to pursue "bogus" claims

    "This case was dismissed and there was zero finding of fault"
    On Friday, Quicken Loans and the DOJ reached a resolution over allegations that the nonbank’s FHA lending practices violated the False Claims Act. Quicken Loans Vice Chairman Bill Emerson told HousingWire in an exclusive interview that the nonbank did not admit to any guilt and that the government realized its "bogus" claims were baseless.
    Read More
  • Quicken Loans agrees to pay $32.5 million to resolve FHA loan allegations with DOJ

    Mediation finally brings 4-year battle over False Claims Act violations to an end
    Quicken Loans is now finally able to move past its beef with the DOJ over the nonbank’s FHA lending practices, as a mediator for the two parties announced Friday that they have finally reached a resolution. Without any admission of guilt or determination of wrongdoing on either side, Quicken agreed to pay the government $32.5 million to settle allegations that it violated the False Claims Act for submitting hundreds of "improperly underwritten" loans for FHA mortgage insurance. Click the headline for more.
    Read More
  • FHA clarifies rules to attract more participants to its mortgage lending program

    Says its jumbled legalese has scared away banks, and it wants to bring them back
    The Federal Housing Administration wants more banks to participate in its mortgage program and it’s clarifying its rules to ease their compliance concerns. On Thursday, the FHA released proposed clarifications to its annual and loan-level certification requirements, as well as updated language describing what constitutes a defective loan, hoping that swapping out "jumbled legalese" with "plain English" will attract more players.
    Read More
  • Quicken Loans, DOJ sent to mediation in ongoing battle over FHA loan allegations

    Trial is scheduled for Aug. 5, 2019
    Nearly four years after the legal battle between Quicken Loans and the Department of Justice began over claims Quicken violated FHA lending rules, the case may finally be decided in court later this year. But not before the parties give settling the matter at least one more try, after being ordered to do so by a federal judge.
    Read More
  • Sierra Pacific Mortgage fined $3.67 million for FHA lending violations

    Accused of knowingly submitting loans for FHA insurance that didn’t qualify
    Sierra Pacific Mortgage will pay a fine of $3.67 million to settle allegations that the company knowingly violated FHA lending standards more than a decade ago. According to the U.S. Attorney’s Office, Sierra Pacific was accused of violating the False Claims Act by falsely certifying that it complied with FHA mortgage insurance requirements in connection with certain loans made between 2007 and 2009.
    Read More
  • Lennar subsidiary Eagle Home Mortgage fined $13.2 million for FHA lending violations

    The False Claims Act ain’t dead yet
    It appears the False Claims Act ain’t dead yet. The Department of Justice announced Friday that it reached a $13.2 million settlement with Universal American Mortgage Company, the mortgage subsidiary of Lennar that does business as Eagle Home Mortgage, to resolve allegations that the lender violated the False Claims Act by falsely certifying that it complied with FHA lending standards.
    Read More
  • Trump administration calls for sweeping changes to financial ecosystem

    “Regulatory sandboxes,” eMortgages, online notarization, automated appraisals, more
    The Trump administration on Tuesday called for a series of changes to the country’s financial and mortgage ecosystems that, if enacted, would supercharge the financial industry’s technological revolution, upend the current regulatory environment, and potentially change the face of mortgage lending.
    Read More