Skip to main content

Regions Pays $52.4 Million to Settle False Claims Act Charges

Phil Hall
Sep 13, 2016
The U.S. Department of Justice (DOJ) has announced that Birmingham, Ala.-based Regions Bank has accepted an agreement

The U.S. Department of Justice (DOJ) has announced that Birmingham, Ala.-based Regions Bank has accepted an agreement to pay $52.4 million for resolving charges violated the False Claims Act by knowingly originating and underwriting mortgages insured by the Federal Housing Administration (FHA) that did not meet applicable requirements.

As part of the settlement, Regions acknowledged wrongdoings on mortgages that it certified for FHA insurance between Jan. 1, 2006 and Dec. 31, 2011. Regions also admitted a failure to a quality control program that fully complied with the federal requirements.

“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the DOJ’s Civil Division. “We will continue to hold responsible lenders that knowingly violate these important requirements.”

However, Regions issued its own statement that claimed it agreed to the settlement “without admitting liability, in order to avoid the expense of potential litigation.” The company added that it was “pleased to resolve this inquiry and is committed to maintaining fair, consistent and accurate loan origination practices.”

Sep 13, 2016
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021