Sierra Pacific Mortgage Fined $3.67 Million For FHA Lending Violations
Feds Fine Sierra Pacific Mortgage $3.67 Million For FHA Lending Violations Under False Claims Act Sierra Pacific Mortgage will pay a fine of $3.67 to the federal government. The company is settling allegations that it knowingly violated lending standards more than a decade ago. The USAO alleges Sierra Pacific Mortgage violated the False Claims Act. They alleged the company falsely certified that it complied with FHA mortgage insurance requirements between 2007 and 2009. Sierra Pacific Mortgage acted as a “direct endorsement lender” in the FHA insurance program. Direct endorsement lenders have the authority to originate, underwrite and endorse mortgages for FHA insurance without approval from the FHA. The program allows lenders to bypass the FHA approval process to endorse loans for FHA insurance. Read more at MFI-Miami