Related Federal Cases
- Mean Arms Enabled Buffalo Shooter, Pays $1.75M · Georgia
- Advisor Bleeds Elderly Man Dry: $10M Fraud Exposed · Georgia
- Mail Room Grift: USPS Workers Plundered ‘Lost & Found’ · Georgia
- Hospice Giant SouthernCare Fines $24.7M for Fraudulent Claims · Alabama
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
BB&T Faked FHA Loans, Pays $83 Million
ATLANTA – Branch Banking & Trust Company (“BB&T”) has been caught faking FHA loans, agreeing to pay the United States $83 million to resolve allegations that it violated the False Claims Act by falsely certifying that it had complied with critical underwriting and quality control requirements when originating FHA loans.
Between January 2006 and January 2012, BB&T participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”), which gave it the authority to originate, underwrite, and endorse mortgages for FHA insurance. However, instead of following program rules, BB&T failed to comply with key HUD underwriting and QC requirements.
“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines” said John A. Horn, the U.S. Attorney for the Northern District of Georgia.
The settlement announced today resolves allegations that BB&T failed to comply with FHA origination, underwriting, and QC requirements. As part of the settlement, BB&T admitted to the following facts:
Between January 1, 2006 and September 30, 2014, BB&T certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to HUD’s QC requirements. BB&T significantly increased its loan volume between 2006 and 2009 – more than doubling all loan originations, while increasing the number of FHA insured loans.
“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement. “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”
The settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants. It is a reminder to all lenders that they must prioritize program compliance over profits.
Key Facts
- State: Georgia
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News