The US Department of Justice continues to pursue penalties for violations of the False Claims Act by FHA-approved mortgagees through dozens of cases over the last several years and has won awards totaling over four billion dollars. The current Administration continues the trend, with four more settlements announced at the end of 2018 and in 2019. In March, the VA-OIG and US Attorney’s Office sent out subpoenas to several VA lenders reviewing origination practices for possible liability under the False Claims Act. In addition, whistleblowers (called "relators") are filing their own lawsuits predicated on the False Claims Act. In the midst of all of this activity, HUD released proposed changes to its loan-level and annual certifications and its defect taxonomy with the stated goal of addressing some of the uncertainty FHA lenders face in connection with the False Claims Act. This webinar will cover the requirements of the False Claims Act, findings that have given rise to liability for FHA lenders and servicers, measures lenders can implement to avoid liability, and the recent HUD proposals to amend the certification language and defect taxonomy.

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Practices –