October 19, 2018
Settling a case brought by a whistleblower, mortgage lender Universal American Mortgage Company will pay $13.2 million to the United States. UAMC acted as a direct endorsement lender in the Federal Housing Administration insurance program, originating and underwriting mortgages with FHA insurance. Because the federal government is liable for FHA loans that default, DELs such as UAMC are required to follow underwriting and quality control rules in issuing mortgages; UAMC allegedly did not follow those rules and knowingly submitted loans for FHA insurance that did not qualify. The whistleblower, Kat Nguyen-Seligman, a former employee of a UAMC related entity, will receive $1,980,000 from the settlement. DOJ; USAO W.D.Wa.