Blog Enforcement Watch September 25, 2020

DOJ Files Complaint Against Lender for Alleged False Claims Act Violations

On September 25, 2020, the Department of Justice (DOJ) announced that it filed a complaint in the United States District Court for the District of Columbia​ against a national mortgage loan originator.

The complaint alleges that the company violated the False Claims Act (FCA) by originating Home Equity Conversion Mortgage (HECM) loans and falsely endorsing those loans for Federal Housing Administration (FHA) mortgage insurance when those loans allegedly failed to comply with FHA requirements.  The complaint further alleges that the company forged signatures on FHA mortgage insurance certifications to falsely indicate that a qualified underwriter approved and underwrote those loans, in violation of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).

The DOJ seeks treble damages and civil money penalties, as permitted under the statutes.​