Prospect Mortgage LLC on Monday agreed to pay the U.S. more than $4 million to resolve allegations that it approved mortgage loans for federal insurance that failed to meet Federal Housing Administration (FHA) standards. The settlement is the latest deal resulting from a federal crackdown on banks and mortgage companies that allegedly contributed to the financial crisis of 2008-2009. Federal prosecutors said the July 3 deal settles a False Claims Act lawsuit the U.S. government brought against Prospect Mortgage. According to the announcement, the California-based lender participated as a direct endorsement lender (DEL) in the Federal Housing Authority’s insurance program. ... Read More
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