Mortgage Co. Sold Bad Loans At HUD's Expense, Suit Says

Law360, New York (April 4, 2013, 7:41 PM EDT) -- Golden First Mortgage Corp. and its president were hit Thursday with a False Claims Act suit by the federal government alleging the company cheated the U.S. Department of Housing and Urban Development by approving loans that should never have been federally insured.

The complaint seeks damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act for years of alleged misconduct in connection with Golden First's participation in the Federal Housing Administration's Direct Endorsement Lender Program.

“As alleged, Golden...
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