Taylor Bean & Whitaker Mortgage Corp. and Home America Mortgage will pay more than $320 million to resolve allegations that they falsified loan applications, created false documentation, and misrepresented qualifications of applicants in order to secure federally funded insurance for home loans that ultimately defaulted.

Two whistleblowers filed a False Claims Act complaint in 2006 in the U.S. District Court for the Northern District of Georgia claiming the businesses engaged in a pattern of fraudulent activity that resulted in false applications for mortgage guarantees to be presented to the Department of Housing and Urban Development.

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