TRENTON, N.J. (Legal Newsline) – The Department of Justice announced that Freedom Mortgage Corp. will pay $113 million to resolve False Claims Act violation allegations.
The company purportedly originated and underwrote loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that failed to meet the program’s applicable requirements.
“It is imperative that mortgage lenders that participate in the FHA insurance program follow the rules and requirements set forth by HUD,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “We will continue to work with our partners at HUD, its Office of Inspector General, and U.S. Attorneys around the country to protect homeowners and taxpayers from those who knowingly seek to abuse the FHA program for their own gain.”
The matter was handled by collectively by HUD, HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey.
“FHA-approved lenders have a responsibility to comply with underwriting standards,” HUD’s General Counsel Helen Kanovsky said. “We are gratified that Freedom Mortgage Corp. has accepted responsibility for its actions.”