Congress passes continuing resolution to fund the federal government and the National Flood Insurance Program; Sen. Tim Scott introduces Renewing Opportunity in the American Dream to Housing Act; trade groups ask FHA to extend waiver on policy updates related to in-person meeting requirement with borrowers in default; the Department of Justice has announced a $2.4 million settlement with shuttered FHA HECM lender.
The New Jersey-based bank was alleged to have restricted mortgage lending services and credit access to certain neighborhoods from 2018 through at least 2022.
A California-based real estate professional admitted to conspiring to originate 102 home loans worth more than $55 million using false and fraudulent loan application information.
A new study has found no discernible effect in FHA loan underwriting following the wave of DOJ lawsuits post 2008 to crack down on reckless mortgage lending by banks.
The loan officers are accused of defrauding banks and the nonbank lender they worked for by falsifying borrowers’ occupancy status on mortgage applications.
HUD finalizes rule on interested party contributions for FHA HECM for purchase program; Ginnie announces payment default status dataset; federal jury convicts FHA borrower of fraud; and more news briefs.
First National Bank of Pennsylvania’s $13.5 million settlement with the DOJ and North Carolina didn’t include a civil monetary penalty. DOJ officials stressed that more redlining enforcement is in the works.
The DOJ sees its latest redlining settlement as sending a strong message to banks. Washington Trust downplayed the matter, noting no civil monetary penalty was required.