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Today, the Department of Justice (DOJ) made a major announcement regarding a settlement involving mortgages that spurred the financial crisis of 2008.
MetLife Home Loans LLC joins the ranks of other financial institutions such as Bank of America, Morgan Stanley, and JPMorgan Chase with its latest settlement. The mortgage finance company must pay back $123.5 million to the United States to resolve allegations that MetLife Bank was in violation of the False Claims Act.
The False Claims Act targets companies and persons that defraud governmental programs. In a press release, the Justice Department stated that MetLife Bank violated the 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.”
The settlement is part of a longtime national effort to hold the
necessary parties accountable for the financial crisis. Currently, U.S. banks have paid back approximately a combined amount of $130 billion since the financial crisis.
Furthermore, Attorney General Eric Holder appealed to U.S. attorneys earlier this month to determine if they believe their current cases involving mortgage-related civil settlements and banks can be won. This will allow the Justice Department to establish which cases must be prioritized to further bring justice to those affected by the financial crisis.