Skip to main content

Syracuse underwriter to pay government nearly $679,000 to resolve fraud allegations

NationalMortgageProfessional.com
Dec 10, 2009

Robert Corp, a mortgage underwriter in Syracuse, N.Y., has agreed to pay the United States close to $679,000 to settle allegations that he defrauded the U.S. Department of Housing & Urban Development (HUD), the Justice Department has announced. This settlement resolves Corp's liability under the False Claims Act, a federal statute that imposes triple damages and penalties for false claims made in connection with federal government programs. The Justice Department filed suit against Corp in May 2008, alleging that he made false statements to HUD on an application for government insurance of a mortgage loan used to refinance the existing debt of Brylin Hospitals, a psychiatric and substance abuse hospital in Buffalo, N.Y. The mortgage insurance program authorizes HUD to guarantee mortgage loans used to refinance debt held by hospitals and other healthcare facilities. Corp allegedly overstated Brylin Hospitals' existing debt in order to obtain a larger refinance loan, and HUD was required to pay more in mortgage insurance claims as a result of Corp's allegedly false statements. "Mortgage fraud is a top priority for this administration," said Tony West, Assistant Attorney General for the Department of Justice's Civil Division. "We will aggressively pursue both individuals and corporations who defraud federal mortgage insurance programs, which are so important to this economy." Assistant Attorney General West noted that his case was a collaborative effort involving the Justice Department's Civil Division, HUD's Office of General Counsel - Office of Program Enforcement, and HUD's Office of the Inspector General in Buffalo, New York. "We have no tolerance for those who try to cheat the Federal Housing Administration or the taxpayer," said FHA Commissioner David H. Stevens. "It's not just about protecting the financial health of the FHA insurance fund -- this is about protecting each and every hospital and healthcare facility that looks to the FHA for safe and secure mortgage financing." For more information, visit www.hud.gov.
Published
Dec 10, 2009
Fed Slows Rate Hike Pace, OK’s 0.25% Bump

Rate hike is 8th since March 2022.

Regulation and Compliance
Feb 01, 2023
Report: Fannie, Freddie Note Sales Undercut Homeownership Goals

National Consumer Law Center report says sales to private investors strip borrowers of access to loss-mitigation options.

Regulation and Compliance
Jan 31, 2023
FHA Expands COVID-19 Recovery Loss-Mitigation Options

Updated and expanded options intended to help more borrowers avoid foreclosure.

Regulation and Compliance
Jan 31, 2023
Complex Algorithms Causing Complex Compliance Issues

Complying with Reg B and ECOA on adverse action

Regulation and Compliance
Jan 27, 2023
The State Of Remote Work In Mortgage

Regulations are catching up with remote work, are you prepared?

Regulation and Compliance
Jan 27, 2023
Becoming The Interest Rate Expert

Understand the five main variable components of rate-sheet pricing and interest rates

Regulation and Compliance
Jan 27, 2023