The Justice Department will receive $15 million from Guaranteed Rate Inc. to resolve allegations it violated the False Claims Act and Financial Institutions Reform, Recovery, and Enforcement Act by knowingly violating requirements under federal mortgage loan programs.
The settlement resolves allegations that Guaranteed Rate didn’t comply with requirements for lenders to maintain quality control programs to prevent underwriting deficiencies, self-report deficient loans, and avoid conflicts of interest, the DOJ said Wednesday.
Guaranteed Rate admitted that its underwriters received gifts in violation of program rules and instructed underwriters not to review documents as part of the settlement, the DOJ said. ...