Recently, we learned that Eric Holder advised the DOJ that they had 90 days to determine if they would pursue action against individuals associated with institutions found liable for wrongdoing in connection with the housing crash.
FHA also announced recently that it wanted to ease some requirements under the certifications lenders make in connection with FHA insured loans.
Keep these in mind as you read this article about the penalties paid by MetLife and others resulting from DOJ investigations and actions brought under the False Claims Act (Fed Penalties).
Two questions come to mind:
- Should anyone at these institutions involved in the lending that led to these penalties be prosecuted? After all, an “institution” doesn’t make the loans. Someone at some level is responsible
- Do you believe that if lenders will get any relief from the False Claims Act enforcements if FHA does ease some of its certification requirements? Or, will it just be more of the same with the DOJ searching for every little error to support an enforcement action and seek penalties.
- Will any of this benefit future lending activity?
You make the call!