$48 Million Settlement reached to resolve False Claims Act Allegations against United Shore Financial Services LLC

Settlement Amount: 

A settlement has been reached to resolve False Claims Act allegations against United Shore Financial Services LLC.

The allegations arose from a lawsuit that claimed United Shore Financial Services LLC (USFS) knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.

The settlement covers allegations from January 1, 2006 through December 31, 2011, USFS failed to comply with certain FHA origination, underwriting and QC requirements.

 As part of the settlement, USFS admitted to the following:  USFS improperly pressured underwriters to approve FHA mortgages and its compensation plan used a formula expressly tying underwriter compensation to the percentage of loans approved by the underwriter and closed by USFS.  USFS also falsely certified that direct endorsement underwriters personally reviewed appraisal reports prior to USFS approving and endorsing mortgages for FHA insurance.

The Housing and Urban Development Department insured hundreds of approved loans that were not eligible for insurance. The federal government "subsequently incurred substantial losses when it paid insurance claims" on USFS approved loans.

"USFS acknowledged that it failed to comply with FHA underwriting and quality control requirements, resulting in improperly originated mortgages," U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin said in the news release. "This large settlement should send a clear message that such conduct will not be tolerated."    

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218


If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

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