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Volume 9 - Number 12
May 20, 2016
There are important details in the recent M&T Bank settlement with the Department of Justice and in this weeks announced filing of a lawsuit against Guild Mortgage that could help lenders avoid a potential false claims lawsuit, according to industry observers. The governments complaints against the two FHA lenders were brought under the False Claims Act, which penalizes acts that intend to defraud the government and taxpayers. The government has been using this powerful statutory tool in the mortgage arena in its attempt to recover FHA losses arising from fraud and noncompliance with agency requirements. As in previous FCA cases against FHA lenders, both M&T Bank and Guild Mortgage were accused of false certification, lax underwriting, poor quality control, failure to review early payment defaults, and failure to self-report deficient loans and remediate problems in a timely manner. In addition, the ...
This biweekly resource helps mortgage executives grow and manage their FHA business.
You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.
Please contact Customer Service if you need assistance: 1-800-570-5744
http://www.insidemortgagefinance.com/issues/imfpubs_ifha/9_12/news/Key-Lessons-for-FHA-Lenders-from-M-1000036831-1.html
Volume 9 - Number 12
May 20, 2016
There are important details in the recent M&T Bank settlement with the Department of Justice and in this weeks announced filing of a lawsuit against Guild Mortgage that could help lenders avoid a potential false claims lawsuit, according to industry observers. The governments complaints against the two FHA lenders were brought under the False Claims Act, which penalizes acts that intend to defraud the government and taxpayers. The government has been using this powerful statutory tool in the mortgage arena in its attempt to recover FHA losses arising from fraud and noncompliance with agency requirements. As in previous FCA cases against FHA lenders, both M&T Bank and Guild Mortgage were accused of false certification, lax underwriting, poor quality control, failure to review early payment defaults, and failure to self-report deficient loans and remediate problems in a timely manner. In addition, the ...
This biweekly resource helps mortgage executives grow and manage their FHA business.
You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.
Please contact Customer Service if you need assistance: 1-800-570-5744
http://www.insidemortgagefinance.com/issues/imfpubs_ifha/9_12/news/Key-Lessons-for-FHA-Lenders-from-M-1000036831-1.html