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Time To Act: Mortgage Rates Likely To Rise Over Next Few Months

Time To Act: Mortgage Rates Likely To Rise Over Next Few Months

Lennar's mortgage unit settles False Claims Act charges for $13M

The investigation was conducted by HUD, the HUD Office of the Inspector General, the Justice Department Civil Division and the U.S. Attorneys for the Eastern and Western Districts of Washington.

"In a quest for profits, mortgage companies have ignored important lending standards," Annette L. Hayes, the U.S. Attorney for the Western District of Washington, said in a press release. "Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules."

The government also alleged that Universal American improperly incentivized underwriters and failed to perform quality control reviews.

"One of our principle responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans," Jeremy M. Kirkland, acting deputy inspector general of the HUD-OIG, said in the Justice Department press release. "This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.

Lennar subsidiary Eagle Home Mortgage fined $13.2 million for FHA lending violations

And now, it’s Eagle Home Mortgage in the DOJ crosshairs.

As with many of the other lenders, Eagle Home acted as a “direct endorsement lender” in the FHA insurance program. As a direct endorsement lender, the lender has the authority to originate, underwrite and endorse mortgages for FHA insurance without prior approval from the FHA.

Under the direct endorsement lender program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance.

The DOJ alleged that between Jan. 1, 2006, and Dec. 31, 2011, Eagle Home knowingly submitted loans for FHA insurance that did not qualify. The DOJ also alleged that the mortgage company “improperly incentivized underwriters and knowingly failed to perform quality control reviews,” which violated HUD rules and contributed to Eagle Home’s submission of defective loans.

“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph Hunt for the Department of Justice’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”

Can a letter of hardship apply toward Mortgage forgiveness Act?

I am looking to move closer to my job, which I currently commute 200 miles on a daily round trip. My current property is $200k under my purchase price. I plan on trying to rent my home or I will probably attempt to short sale it.

If you chose to buy a home 200 miles to job, that's a choice you made, your election, hardship you chose. Now if you got transferred after purchasing home, then it's a hardship.