Academy Mortgage Corp. agreed in principle to settle a lawsuit with a False Claims Act whistleblower alleging that the company defrauded a federal program by falsely certifying loans for Federal Housing Administration insurance.
The parties are working with the Justice Department to finalize the settlement, they told the US District Court for the Northern District of California in a motion seeking a stay of proceedings filed Thursday.
Trial is scheduled for Oct. 7. Counsel for the parties didn’t immediately respond to a request for comment.
Gwen Thrower filed the suit in 2016 alleging that Academy Mortgage encouraged underwriters to break ...