Critics of recent False Claims Act enforcement argue the Justice Department is too heavy-handed toward lenders and servicers. But in an industry reputed for shoddy processes during the crisis, perhaps stringent oversight is warranted.
PHH Corp. will pay the Justice Department $75 million to settle a False Claims Act investigation of its underwriting practices on government-insured mortgages and loans sold to Fannie Mae and Freddie Mac.
Among the budget cuts proposed by the Trump administration is $6 billion to the Department of Housing and Urban Development, which could translate to the loss of Section 8 housing to 1,400 families statewide, about half of them in Albuquerque.
A former California mortgage lender agreed to pay $4.2 million to settle civil fraud allegations that its lending practices in the Southeast caused taxpayers to lose millions of dollars when homeowners defaulted on their loans after the Great Recession.
The Department of Housing and Urban Development is implementing reforms to its reverse mortgage program and providing more counseling resources for seniors who are considering the product, Secretary Ben Carson said Monday.