Two FHA lenders have agreed to separate settlements with the Department of Justice and the Department of Housing and Urban Development to resolve allegations of mortgage fraud that resulted in huge losses for HUD. Golden First Mortgage Corp. and its owner/president, David Movtady, have agreed to a $36.3 million settlement with the DOJ to resolve allegations they had lied to the FHA about the quality of loans they had certified for FHA insurance since July 2007. Consequently, the agency incurred more than $12 million in losses since that time, according to court documents. Filed in April 2013 in Manhattan federal court and amended in August 2013, the government complaint sought damages and penalties under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act against Golden First for years of misconduct as an FHA direct-endorsement lender. Golden First was a ...