HUD Settles with FHA Lender Over Alleged Underwriting Violations

Goodwin
Contact

On September 23, the U.S. Department of Housing and Urban Development (HUD) announced that on April 7, 2016 it had entered into a settlement with a Federal Housing Administration (FHA) approved lender over allegations that the lender violated FHA underwriting requirements.  The lender participated in HUD’s direct endorsement lender program, which authorizes private mortgage lenders to approve mortgage loans insured by the FHA.  HUD alleged that five loans underwritten by the lender failed to meet FHA underwriting requirements, and therefore the lender was liable under the Program Fraud Civil Remedies Act of 1986, 31 U.S.C. § 3801-3812.  Under the terms of the settlement, the lender agreed to pay a $110,000 civil money penalty.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin | Attorney Advertising

Written by:

Goodwin
Contact
more
less

Goodwin on:

Reporters on Deadline

Related Case Law

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.