Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Mortgage Lender Accused of Violating the False Claims Act Agrees to Pay Government $212.5 Million for Alleged FHA-Insured Loan Fraud

washingtontimes.com | June 7, 2015

On June 1, 2015, the Department of Justice (DOJ) announced that First Tennessee Bank NA, headquartered in in Memphis, TN, has agreed to pay the U.S. Government $212.5 million to resolve allegations that it violated the False Claims Act (FCA) by certifying mortgage loans insured by the U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) – mortgages that allegedly did not meet HUD’s underwriting requirements.

FHA’s program gives qualifying lenders, such as Tennessee Bank, the incentive to loan low income creditworthy borrowers money to purchase a home – loans that are then insured by FHA in case of unforeseen circumstances that may cause the loan to go into default. Since 1934, the FHA has insured over 34 million loans through HUD, allowing lenders to insure loans for borrowers that have less than perfect credit. Loan guidelines, including debt-to-income ratios, specific credit requirements, and maximum loan amounts, were created by the FHA to protect the borrower and the lender. However, the government claims that Tennessee Bank repeatedly neglected to adhere to these guidelines.

According to the lawsuit filed by the government, between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (First Horizon), allegedly claimed that mortgage loans it had approved qualified for FHA insurance coverage, when in fact these loans did not meet FHA’s guidelines. Because First Horizon is a Direct Endorsement Lender (DEL), it has the authority to originate, underwrite and endorse mortgages for FHA insurance and these loans are not reviewed by either FHA or HUD. Consequently, First Horizon created mortgages that it knew were high risk, submitted claims for reimbursement when these loans failed, and received insurance payments from HUD for these defaulted loans. This alleged practice by First Horizon is a violation of the FCA and continues to cause negative repercussions on the borrowers, the government, and the tax payers.

This type of fraud has permeated the banking industry and to date, the U.S. Government has recovered billions of dollars from lenders that knowingly approve high risk loans and then looked to the government to recover from high risk debt. For example, last year SunTrust agreed to a $968 million settlement of charges brought by federal and state regulators for unqualified mortgage loans — $500 million which went towards consumer relief to homeowners who were affected by these abusive mortgage practices. Additionally, in February 2014, JPMorgan agreed to a settlement of $614 million and in December 2014, Bank of America agreed to pay the government $16.65 billion after it acquired Countrywide Financial for similar loan violations.

 

Back to June 2015 Archive

 

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:

 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Sutton Law Firm, P.L.L.C.

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 832-932-3951
Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved