DOJ Sues another FHA Lender

Hot news from AZ Home Help:

Posted To: MND NewsWire

A New York mortgage company has been sued by the U.S. Department of Justice (DOJ) for alleged fraud against the Federal Housing Administration (FHA) . Golden First Mortgage Corporation and its president David Movtady are accused of having " repeatedly lied " to the government between 2002 and 2010 to win FHA insurance for its loans. These loans were, the suit alleges, of poor quality and ultimately cost taxpayers millions of dollars. FHA does not review home loans before approving them, relying on its lenders to underwrite them in accordance with government guidelines to ensure their creditworthiness. Golden First is said to have submitted false certifications that it had conducted proper due diligence. Instead the Great Neck Long Island company emphasized speed and volume over quality and...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagenewsdaily.com/04042013_mortgage_fraud.asp

- For more real estate news visit our website at http://www.AzHomeHelp.com