Two Utah mortgage lenders will pay a total of nearly $10 million to settle allegations that they approved borrowers without documenting information like income and credit history.
The U.S. Department of Justice said this week that the Salt Lake City-based companies wrongly approved federally backed low-down-payment FHA loans for borrowers who later defaulted, costing public money.
Prosecutors say the companies failed to document borrowers’ income to qualify for the loan, analyze delinquent credit history, or take into account that a borrower was already behind on another mortgage.
Prosecutors say Primary Residential Mortgage Inc. has agreed to pay $5 million and SecurityNational Mortgage Company will pay $4.25 million to settle the allegations.
Primary says it’s pleased the settlement will avoid litigation, but it doesn’t admit liability.
SecurityNational was not immediately available for comment.
Was this article valuable?
Here are more articles you may enjoy.
Florida Regulators Mulling New Rules on Market Conduct Exams, Reporting 
Air Taxi Service Across Parts of Florida Moving Closer to Reality 
Two Years in, Ortiz Steps Down as CEO of Florida Re 
London Broker Howden Plots Giant Capital Raise on IPO Path 
