To settle claims that it abused its status as a direct endorsement lender with the Department of Housing and Urban Development by knowingly approving substandard loans for Federal Housing Administration (FHA) insurance, Universal American Mortgage Company LLC agreed to pay $13.2 million to the United States, according to the Department of Justice.
The company, operating as Eagle Home Mortgage, was charged with violating the False Claims Act by falsely certifying that it complied with FHA mortgage insurance requirements in connection with loans it endorsed between Jan. 1, 2006, and Dec. 31, 2011.
Find out about how the company was able to skirt FHA oversight and the potential repercussions of such a practice.