U.S. Bank, an Ohio-based banking services company, agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by engaging in lax mortgage underwriting practices in violation of the Federal Housing Administration’s (FHA’s) lending requirements. As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet the underwriting requirements of FHA’s parent agency, the U.S. Department of Housing and Urban Development (HUD). U.S. Bank also admitted that its quality control program did not meet FHA requirements and it consequently failed to identify deficient loans, self-report them to HUD, and take corrective action as required under the program.

Read the entire press release, “U.S. Bank to Pay $200 Million to Resolve Alleged FHA Mortgage Lending Violations”
Read the settlement agreement here