July 3, 2017
Posted August 8, 2017
Prospect Mortgage Company agreed to pay roughly $4 million to settle charges of violating the False Claims Act stemming from Prospect’s participation in the Direct Endorsement Lender Program administered by the Federal Housing Administration and Department of Housing and Urban Development. The government alleged Prospect falsely certified compliance with critical underwriting and quality control requirements when originating loans insured by the FHA and HUD resulting in substantial losses to the government when the loans defaulted and ripened into claims by Prospect for insurance payments from the government. DOJ (NDGA)
Tagged in: FCA Federal, Housing and Mortgage Fraud,