Departments of Justice and Housing and Urban Development Sign Interagency Memorandum on the Application of the False Claims Act
The Justice Department and the Department of Housing and Urban Development have entered into a Memorandum of Understanding that sets guidance on the appropriate use of the False Claims Act for violations by Federal Housing Administration lenders.
HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and DOJ – including the U.S. Attorneys’ Offices – will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA. HUD will utilize the Mortgagee Review Board, which was created by statute and empowered to take certain actions for non-compliance by FHA lenders, to review and refer FCA claims.
