Mortgage Fraud Recovery
Flagstar Bank FSB has agreed to pay $132.8 million to settle False Claims Act allegations that it improperly approved home mortgage loans for government insurance. The settlement by the company based in Troy, Michigan, is one of the first successful mortgage fraud prosecutions under the False Claims Act. Under the terms of the settlement, Flagstar accepted responsibility for its conduct and committed to reform its business practices to ensure compliance with Department of Housing and Urban Development requirements.
