Guild Mortgage to pay $ 25 million in settlement of federal lawsuit
In today Daily Download Episode, HousingWire covers an ad that Guild Mortgage agreed to pay $ 25 million to settle a federal lawsuit.
For an overview of the story, here is a summary of the item:
Just before his stock Debuted at a disappointing $ 15 per share, Guild Mortgage settled a federal lawsuit that the lender knowingly violated legal requirements when taking and underwriting FHA loans.
Guild agreed to settle the federal lawsuit, brought by the Department of Justice, for just under $ 25 million, the government said Thursday. He did not admit any wrongdoing.
The lawsuit, initially filed in 2016, alleged that Guild knowingly created and underwent mortgages that did not meet program requirements of FHA. These loans, taken out between 2007 and 2011, defaulted and led to claims to the FHA for mortgage insurance. Guild “has failed to comply with program material rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, and has failed to self-report materially insufficient loans that it has. identified, “the government said.
“As this regulation demonstrates, we are committed to holding mortgage lenders accountable when they choose to abuse the integrity of vital government programs designed to help homeownership,” said US Attorney Robert Brewer for the Southern California District in a statement. “We also commend the whistleblower for coming forward, exposing these wrongs and working with the government’s investigative team.”
Following the main story, HousingWire covers the Federal Housing Administration new automated subscription system and one report of Redfin This suggests that the luxury housing market has inspired a booming holiday frenzy in cities.
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HousingWire articles covered in this episode: