Mortgage Insurance

  • Mortgage Underwriting Fraud in 2016 – Whistleblower Post

    … another mortgage underwriting fraud cases against Primary Residential Mortgage (PRMI). The company agreed to pay $5 million to settle the case. According to the Justice Department, “PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where: PRMI failed to document the assets used to qualify…

    Due Diligence- 18 readers -
  • USFS Settles Crisis Era False Claims Act Mortgage Fraud Case

    … Settlement with United Shore Financial Services The case against United Shore was prosecuted by the Department of Justice and the Inspector General of HUD. The Office of the Inspector General is the law enforcement arm of HUD. Prosecutors in Washington DC, Madison, Wisconsin and Detroit participated in the case. In announcing the settlement, a Justice…

    Due Diligence- 19 readers -
  • Freedom Mortgage – VA Loans – ACTIVE INVESTIGATION

    … and compliance professionals and the like. Confidentiality is assured. Our servicemen and women have sacrificed much simply we can enjoy our freedom and security. Our goal is to insure that we protect them from predatory underwriting practices. If you financed through Freedom or worked there, we would appreciate a few minutes of your time. If you…

    Due Diligence- 14 readers -
  • Anatomy of a Fraud – U.S. v Allied Home Mortgage Goes to Trial

    … credit or buying a home with no money down. These same rules also require that a certain percentage of loans be sampled within 90 days of closing. The independent quality control, or “QC” process, is designed to quickly detect problems with loan quality and paperwork. Finally, HUD and the FHA also want to know who is writing the loans Every…

    Due Diligence- 42 readers -
  • BB&T Pays $83 Million Settles Mortgage False Claims Act Beef

    … Underwriting fraud is certainly back in the news these days. Earlier this week we posted a story about Regions Bank and their $52 million settlement with the Justice Department. Now the bank in the Justice Department’s crosshairs is Branch Banking & Trust Company, better known as BB&T. Both companies were prosecuted under a Civil War era…

    Due Diligence- 17 readers -
  • First Tennessee Bank Settles False Claims Act Suit – $212 Million!

    … that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings. These findings were routinely shared with First Tennessee’s senior managers. Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings…

    Due Diligence- 24 readers -