PHH Corp. will pay the Justice Department $75 million to settle a False Claims Act investigation of its underwriting practices on mortgages insured by the Federal Housing Administration and Department of Veterans Affairs, as well as loans sold to Fannie Mae and Freddie Mac.
The False Claims Act settlement covers FHA loans originated between Jan. 1, 2006 and Dec. 31, 2011, Mount Laurel, N.J.-based PHH said in a regulatory filing Tuesday. HUD’s Office of the Inspector General issued subpoenas in 2013 seeking documents related to the origination and underwriting process for FHA-insured mortgages and a small sample of loans originated during that period. A HUD spokesperson referred a request for comment to the DOJ, which did not immediately respond to NMN’s inquiry.
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