January 4, 2017

Top-10 DOJ Mortgage Fraud Recoveries For 2016

By the C|C Whistleblower Lawyer Team

Here is our look-back at the top-10 Department of Justice mortgage fraud recoveries for 2016.  Click here for a full chronological listing of all DOJ fraud recoveries for 2016.

  1. United Shore Financial Services — The company agreed to pay $48 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  DOJ

  1. Regions Bank — The Birmingham-based bank agreed to pay $52.4 million to settle charges it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements.  Whistleblower Insider
  1. M&T Bank Corp — The Buffalo-based bank agreed to pay $64 million to settle charges it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements.  DOJ
  1. Branch Banking & Trust Company — The North Carolina-based bank agreed to pay $83 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements.  DOJ
  1. Allied Home Mortgage — A Houston jury rendered an award of roughly $93 million against the entities formerly known as Allied Home Mortgage Capital Corp.Allied Home Mortgage Corp., and their president and chief executive officer Jim C. Hodge for violating the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) relating to mortgage fraud.  Whistleblower Insider
  1. Freedom Mortgage Corporation — The New Jersey-based mortgage company agreed to pay $113 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting single family mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements for the FHA insurance program.  DOJ
  1. HSBC Bank USA — The bank agreed to pay $470 million to settle charges of mortgage origination, servicing and foreclosure abuses.  DOJ
  1. Wells Fargo — The California-based bank agreed to pay $1.2 billion in connection with the bank’s improper mortgage lending practices.  DOJ
  1. Morgan Stanley — The New York based financial services company agreed to pay a $2.6 billion penalty “for misleading investors about the subprime mortgage loans underlying the securities it sold” in the period leading up to the financial crisis.  Whistleblower Insider
  1. Goldman Sachs — The New York-based investment bank agreed to pay $5.06 billion to settle charges relating to alleged misconduct in the sale of its residential mortgage-backed securities or what the government described as “serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail.”  Whistleblower Insider

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