Report Finds First Magnus Violated Real Estate Law

Law360, New York (July 24, 2008, 12:00 AM EDT) -- A new audit report released by the U.S. Department of Housing and Urban Development has revealed that home lender First Magnus Financial Corp. violated federal law by offering incentives to mortgage brokers.

In the report, issued on July 14, the department said First Magnus violated the Real Estate Settlement Procedures Act by paying brokers for generating Federal Housing Administration mortgages.

The report claims that First Magnus paid brokers$58,571 in quality incentives for originating and processing 169 FHA mortgages worth a total of $24 million.

First Magnus'...
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