DOJ Settlement with ABN AMRO Mortgage Group, Inc.
United States Attorney Stephen J. Murphy and the Department of Justice announced that ABN AMRO Mortgage Group, Inc. (ABN) has agreed upon a settlement with the United States government valued at over $41 million evolving from a False Claims Act case in connection with over 28,000 federally insured mortgages. This payment by ABN is one of the largest ever acquired in a civil settlement by the U.S. Attorney’s Office of the Eastern District of Michigan under the False Claims Act. This agreement settles allegations that ABN made false certifications to the United States Department of Housing and Urban Development (HUD) in connection with 28,097 federally insured mortgages. The government suspected that over 200 of the falsely certified mortgages led to defaults which were insured by HUD, resulting in losses to HUD in excess of $6 million. All of the loans at issue were properly identified and investigated by both ABN and the government which allowed the parties to reach a settlement.
For more information see: http://mortgagefraud.squarespace.com/display/ShowJournal?moduleId=78225&categoryId=5965¤tPage=3