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Financial Services Law Insights and Observations

Mortgage Fraud Whistleblower Receives $64 Million Award

HUD DOJ FHA False Claims Act / FIRREA

Lending

On March 7, the U.S. District Court for the Southern District of New York approved a stipulation and order awarding nearly $64 million to the relator in a mortgage fraud case recently settled by the federal government. Pursuant to that settlement, a mortgage lender agreed to pay a total of $614 million to resolve allegations that it violated the False Claims Act by submitting false loan-level certifications that fraudulently induced HUD and the Department of Veterans Affairs to insure ineligible mortgage loans.

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