Items Tagged with 'False Claims Act'

ARTICLES

  • 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.
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  • FHA commissioner: We’re easing False Claims Act use to bring big banks back to FHA lending

    FHA wants the big banks to come back
    In recent years, many of the nation’s largest lenders moved away from FHA lending, scared off by the government’s use of the False Claims Act as a means to extract massive settlements from lenders. But it appears that’s all about to change, as FHA Commissioner Brian Montgomery said Tuesday that he believes the Obama administration went too far in some cases and said that the Trump administration is dialing back the use of the False Claims Act to bring more lenders back into FHA lending.
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  • Deloitte & Touche to pay $149.5 million in settlement over Taylor, Bean & Whitaker

    The ghosts of the past resurface again
    Deloitte & Touche will pay $149.5 million to the federal government as part of a settlement over its role in the spectacular collapse of Taylor, Bean & Whitaker, which was one of the country’s largest mortgage lenders. The government alleged that Deloitte failed in its duties as TBW’s auditor from 2002 to 2008.
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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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  • 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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