DOJ Sues Lender For Alleged Lies To HUD

Law360, New York (July 29, 2011, 6:30 PM EDT) -- The U.S. Department of Justice on Friday filed suit against the owner of an Illinois-based mortgage lender who allegedly failed to disclose his 2005 fraud indictment to the U.S. Department of Housing and Urban Development when applying for mortgage insurance from the agency.

Robert Luce, through his company MDR Mortgage Corp., originated at least 2,539 Federal Housing Administration-insured loans after his April 2005 indictment for fraud, making false statements and obstruction of justice in connection with a federal investigation, according to the complaint filed in the...
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