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False Claims Act (FCA) › Underwriting

Wiley Rein LLP

Professional Services and Contract Exclusions Do Not Bar Coverage for Settlement of False Claims Act Investigation

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The Delaware Superior Court has held that a professional services exclusion and a contract exclusion in a D&O policy do not bar coverage for a False Claims Act settlement. Guaranteed Rate, Inc. v. ACE Am. Ins. Co., 2022 WL...more

Buchalter

Buchalter COVID-19 Client Alert: Entrapment-by-Estoppel: A Potential Future Defense for Lenders in PPP Fraud Cases

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The past decade has taught lenders much about regulatory enforcement risk. In the fallout of the 2008 financial crisis and collapse of the housing and related markets, the Department of Justice and other agencies...more

Goodwin

DOJ Investigates FHA Loans Issued by Florida-Based Mortgage Subsidiary

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On January 25, 2018, a Florida-based homebuilder filed its Form 10-K annual report with the Securities and Exchange Commission (SEC), disclosing that its “mortgage subsidiary has been subpoenaed by the United States...more

Bradley Arant Boult Cummings LLP

Jury Verdict Expands to $298 Million in False Claims Act/FIRREA Case as Court Assesses Treble Damages and Penalties

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A federal court in Texas recently entered a massive judgment against a mortgage originator for financial crisis conduct, transforming an already severe $93 million jury verdict into a $298 million punishment, and issuing one...more

Goodwin

Court Awards Nearly $280 Million in Treble Damages Against Former FHA Lender

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On September 14, 2017, the U.S. District Court for the Southern District of Texas issued an opinion and order against two former mortgage companies and their former president and CEO. The order, which followed a previous jury...more

Goodwin

Mortgage Lender Pays $4.157 Million to Settle False Claims Act Allegations Concerning FHA Loans

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On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s...more

Carlton Fields

Tennessee District Court Orders Discovery Of Reinsurance Agreements, But Denies Discovery Of Reinsurance-Related Communications,...

Carlton Fields on

Plaintiffs sought coverage from the insurer Defendants for a $212.5 million dollar settlement of a claim of violation of the False Claims Act relating to errors and omissions in underwriting and origination of HUD mortgage...more

Goodwin

DOJ Secures $83 Million Settlement Over Alleged FHA Underwriting Violations

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On September 29, the U.S. Department of Justice (DOJ) announced that it had secured a settlement from a national lender, resolving allegations that the lender violated the False Claims Act, Program Fraud Civil Remedies Act,...more

Goodwin

HUD/DOJ Settle with FHA Mortgage Lender for $52.4 Million Over Alleged False Claims Act Violations

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On September 13, 2016, the Department of Justice (“DOJ”) announced a settlement agreement with a bank for allegedly violating the False Claims Act by improperly underwriting and originating of FHA-insured mortgage loans. ...more

Baker Donelson

Will the DOJ Kill FHA Loans Through Their Use of the False Claims Act?

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The purpose of the Federal Housing Administration (FHA) is "to help creditworthy low income and first time homebuyers, individuals and families often denied traditional credit, to obtain a mortgage and purchase a home." This...more

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