On October 19, 2016 the U.S. Attorney’s Office (USAO) announced that it had settled with a Massachusetts-based mortgage lender and its CEO for $1,025,000 to resolve allegations that the mortgage lender submitted false insurance claims on mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA). The USAO alleged that the lender “ignored FHA’s due diligence requirements and falsely certified that [its] loans qualified for FHA insurance when they did not.” In connection with the settlement, the lender admitted that between 2005 and 2011, it did not always “conduct the due diligence required by FHA, and as a result,” certified loans for FHA insurance that were, in fact, “ineligible for FHA insurance.” The USAO also alleged that, at times, the lender did not conduct post-closing audits of loans it originated, even though it had certified to FHA that it was doing so. The lender also allegedly did not report material deficiencies to the FHA after identifying them during post-closing audits. The settlement took into account the lender’s “financial circumstances and recent improvements to [its business practices.” The investigation was handled by HUD’s Office of the Inspector General and Office of General Counsel.