Blogs| Contact Us| Log In| Search Here

Skip Navigation LinksFSOkx Home > News > Detail

Search News

Keywords
Date From To

News Archive

Year 2017 (49)
Year 2016 (87)
Year 2013 (3)
Year 2012 (35)

News

Bookmark and Share

M&T Bank to Pay US$64 Million to Resolve Allegations about FHA Loans

M&T Bank Corporation will pay the federal government US$64 million to resolve allegations that the bank failed to comply with certain Federal Housing Administration (FHA) mortgage loan origination, underwriting, and quality control requirements. The Justice Department alleged the Buffalo-based bank violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the FHA that did not meet applicable requirements.

M&T in a regulatory filing last year disclosed settlement talks related to the investigation were under way. The Justice Department said the allegations resolved by the settlement arose from a whistleblower lawsuit filed under the False Claims Act by a former M&T employee, Keisha Kelschenbach. Under the act, private citizens can sue on behalf of the government and share in any recovery. The Justice Department said the share to be awarded in this case has not been determined.

News Characteristics

Date : May 13, 2016
Region : North America
Industry : Mortgage Companies
Function : Risk Management
Sub-Function : Fraud Management