Golden First Mortgage Corp Pays 36M For Mortgage Fraud Lawsuit

Dated: January 2 2015

Views: 409

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 30 years in the industry, Mark has gained experience in ....

Latest Blog Posts

How To Get Your House Ready To Sell In Summer

Historically, the most active time for buying and selling real estate is when the weather gets warm, and it is expected to blossom this year as the housing market springs back to life nationwide.If

Read More

How Much To Budget For Home Maintenance

Owning a home comes with certain responsibilities. There is no landlord to call when a sink stops draining or the lawn needs mowing. Regular home maintenance is essential to lengthening the lifespan

Read More

Are You Truly Ready To Downsize

There’s a host of reasons for downsizing to a smaller home. You might want to pocket the savings and build upon your nest egg. Maybe you’re ready for a new adventure and eager to move to a high

Read More

4 Things You Absolutely Must Do Before Painting Your House

Deciding to have our house painted was a big decision, but once we made it, we couldn’t wait to see the final results. But wait we did.What we hadn’t anticipated was all the prep work that went

Read More