NY Lender To Pay $1.2M Over Mortgage Fraud Role

Law360, New York (December 2, 2011, 5:24 PM EST) -- Mortgage lender Cambridge Home Capital LLC agreed Thursday to pay $1.2 million to settle allegations that as part of a house-flipping scheme, it had fraudulently secured loans that all ended in default, costing the U.S. government millions.

Under the terms of a consent decree with the U.S. Department of Justice, New York-based Cambridge admitted that it had submitted records to the U.S. Department of Housing and Urban Development that overstated the mortgagors' incomes or understated their liabilities, and that it had made payment to their creditors...
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