U.S. Bank pays $200M to settle FHA suit
July 2, 2014 – Cincinnati-based U.S. Bank has agreed to pay the government $200 million to settle a suit over its failure to identify and report thousands of deficient loans according to the Federal Housing Administration’s requirements.
The bank admitted to certifying mortgage loans for FHA insurance that did not meet the underwriting requirements of the Department of Housing and Urban Development and that it failed to self-report those deficiencies and take the required corrective action. The bank also admitted that this improper certifying caused FHA to suffer “substantial losses,” according to Cleveland.com.
These loans were certified between 2006 and 2011.
The suit came about from a joint investigation by HUD, its Office of Inspector General, the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Northern District of Ohio and Eastern District of Michigan.