Items Tagged with 'False Claims Act'

ARTICLES

  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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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