Fannie And Freddie Loans Could Be Next FCA Targets
Law360, New York ( February 10, 2016, 10:29 AM EST) -- By now, lenders that make loans insured by the federal government are well acquainted with the False Claims Act. Following the financial crisis, the U.S. Department of Justice has aggressively used the FCA to collect billions of dollars in settlements from mortgage lenders whose loans are backed by the Federal Housing Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD). While most of the DOJ's cases to date have focused on loan origination, more recently both the DOJ's and the relator's bar have pursued an increasing number of cases on the servicing side as well,[1] including in the area of reverse mortgages.[2] The government has also used the FCA to pursue mortgage lenders whose loans were insured by the Veterans Administration, albeit not on the same scale as its pursuit of FHA lenders.[3]...
Law360 is on it, so you are, too.
A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.