$83 Million Settlement reached to resolve False Claims Act Allegations against Branch Banking & Trust Company

Settlement Amount: 

A settlement reached to resolve False Claims Act Allegations against Branch Banking & Trust Company.

The allegations arose by lawsuit claiming Branch Banking & Trust Company violated the False Claims Act by 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.

On September 29, 2016, the Department of Justice announced that Branch Banking & Trust Company failed to comply with certain FHA origination, underwriting and quality control requirements. Branch Banking & Trust Company confessed that between January 1, 2006 and September 30, 2014, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s quality control requirements.  Additionally, during this period, Branch Banking & Trust Company quality control process did not satisfy certain FHA requirements. 

Branch Banking & Trust Company stated that the settlement will have no negative effect on Branch Banking & Trust Company's financial condition or results of operations as a result of previous accruals totaling $85 million. 

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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