Mortgage Co. Will Pay $48M For Bad FHA Loans

Law360, Washington (January 3, 2017, 2:36 PM EST) -- U.S mortgage company United Shore Financial Services LLC has agreed to a $48 million settlement with the U.S. government for False Claims Act violations stemming from “materially deficient” Federal Housing Administration-insured mortgages it issued between 2006 and 2011.

USFS admitted to improperly pressuring underwriters to approve FHA mortgages, falsely claiming that underwriters personally reviewed appraisal reports for mortgages it endorsed for FHA insurance and failing to make required reports of materially deficient loans to the department of Housing and Urban Development as part of the settlement announced Dec. 28.

“USFS acknowledged that it failed to comply with FHA underwriting and quality...

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