Golden First Mortgage Corp Pays 36M For Mortgage Fraud Lawsuit

Dated: January 2 2015

Views: 398

Golden First Mortgage Corp. agreed to a $36 million judgment to resolve claims that it approved bad loans costing the government millions of dollars when they inevitably defaulted.


The company’s owner, operator and president from 1979 until 2010, David Movtady, also agreed to a $300,000 payment, accepting responsibility for conduct alleged in the complaint.  


In addition, Movtady will be permanently barred from conducting any business with the federal government.


Preet Bharara, the United States attorney for the Southern District of New York, said the mortgage company violated the False Claims Act for years of misconduct in connection with the lender’s participation in the Federal Housing Administration’s Direct Endorsement Lender Program.


Specifically, they were charged with failing to maintain a compliant quality control program and therefore did not conform to all U.S. Department of Housing and Urban Development and FHA regulations applicable to the Direct Endorsement Lender Program.


“This settlement holds Golden First and its owner, David Movtady, accountable for lying to the government about compliance with HUD requirements and approving bad loans. This type of conduct costs the United States millions of dollars when the loans inevitably default, and this office is committed to snuffing it out,” Bharara said. 


Source

Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 25+ years in the industry, Mark has gained experience in....

Latest Blog Posts

The Housing Market Is Hot But Not In A Bubble

Existing home sales came in at a whopping 6,850,000, beating estimates with the highest print since 2006. Days on market fell from 36 days to 21 days on a year-over-year basis. Cash buyers remain at

Read More

10 Ways To Enjoy Your Outdoor Living Space All Year

Some believe that the end of summer also marks the final days of enjoying outdoor barbecues, parties, and casual get-togethers. Yet, just by adding a few design elements to your outdoor space, you

Read More

3 Ways To Tap Your Home Equity And Which One Is Right For You

You need to come up with some cash, fast. Maybe you have a leaky roof that desperately needs fixing or you need help paying for your kid's first semester of college. But where do you turn?If you're

Read More

These Pandemic Related Housing And Design Trends Are Not Going Away

Home trends come and go, but social distancing and staying at home have ushered in a new way of life—and some of those changes have spurred home trends that are likely to stick around well past

Read More