Wednesday, November 26, 2008

RBC Mortgage Co. will settle FCA suit for over $10.71 million

RBC Mortgage Company (RBC) will pay the federal government more than $10.71 million to resolve a False Claims Act suit that alleged the company gave the U.S. government false information about borrowers who took out 219 home loans that ended up in foreclosure.

The government alleged that RBC falsified documentation in support of loan applications, violated due diligence underwriting requirements and improperly submitted loans for endorsement by HUD that were not eligible for FHA insurance.