Residential Lender Will Pay $15M To End FCA Claims

Law360 (April 29, 2020, 10:44 PM EDT) -- Chicago-based residential mortgage company Guaranteed Rate has agreed to pay just over $15 million to settle allegations that it knowingly violated the requirements of federal mortgage loan programs, the U.S. Department of Justice said Wednesday.

The settlement resolves claims that Guaranteed Rate flouted rules that require lenders to maintain underwriting quality control programs, self-report deficient loans and ensure that the underwriting process is free from conflicts of interest.

It stems from an original suit brought against the company by a former Guaranteed Rate employee in 2017 who, under the so-called qui tam whistleblower provisions of the False Claims Act, will be...

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