Texas Jury Slaps Mortgage Lenders, CEO With $93M Verdict

Law360, New York (December 1, 2016, 5:49 PM EST) -- Two mortgage brokers once among the largest in the nation and their CEO must pay a $93 million verdict that is subject to trebling after a Houston federal jury ruled they tricked the federal government into covering thousands of risky loans.

The jury released its verdict Tuesday after a five-week trial, finding Texas-based Americus Mortgage Corp., AllQuest Home Mortgage Corp. and their founder Jim Hodge are liable for lending fraud and flouting multiple Federal Housing Authority rules, in violation of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act. Hodge was ordered to cover $7.37 million of...

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