Blog Enforcement Watch June 22, 2022

USAO Settles with California Lender for $1 Million

On June 22, 2022, the USAO for the Eastern District of Washington announced that it had reached a settlement with a California-based mortgage lender for fraudulent originations of Federal Housing Administration (FHA) backed loans. The investigation began as a qui tam action filed under seal in the U.S. District Court for the Eastern District of Washington. The USAO intervened and, along with the Department of Housing and Urban Development (HUD) and Department of Veterans Affairs, investigated allegations that the lender fraudulently underwrote and approved certain FHA mortgages that did not meet statutory requirements for federal backing. The government also alleged that the lender did not perform required quality control reviews.

​Under the settlement, in exchange for resolving all allegations stemming from the investigation, the lender will pay $1,037,145, of which $228,172 will go to the qui tam relator who filed the original action.

The post USAO Settles with California Lender for $1 Million appeared first on Consumer Finance Enforcement Watch.