Bank To Pay $83M For Getting FHA Insurance On Bad Loans
Law360, New York (September 29, 2016, 6:42 PM EDT) -- A major North Carolina-based bank will pay $83 million to resolve allegations it violated the False Claims Act by obtaining Federal Housing Authority insurance on risky ineligible mortgages, the U.S. Department of Justice said Thursday.
Branch Banking & Trust Co., headquartered in Winston-Salem, is a direct endorsement lender in the FHA's insurance program. From 2006 to 2014, it certified mortgage loans for FHA insurance that didn't meet federal underwriting or quality control requirements, the government said. When the loans defaulted, the U.S. Department of Housing and Urban Development, which wouldn't have insured the mortgages through FHA if it had known of...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!