Lender Forks Over $11M To Settle False Claims Act Charges With Illinois Feds; Allegedly Gave False Info On 219 FHA Loans That Ended Up In Foreclosure

In Chicago, Illinois, Reuters reports:

• A Royal Bank of Canada mortgage unit will pay $10.98 million to settle charges it gave the U.S. government false information about borrowers who took out 219 home loans that ended up in foreclosure.

• RBC Mortgage Co agreed to the payment to avoid litigation but denied wrongdoing, according to Patrick Fitzgerald, the U.S. attorney in Chicago, who announced the settlement.

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• The civil case is related to a separate federal criminal probe that resulted in the convictions of 25 defendants, including three RBC Mortgage officers, Fitzgerald said.

For more, see RBC pays $11 mln to settle US mortgage fraud probe.

From the Office of the U.S. Attorney (Chicago):

• Press release: RBC Mortgage Co. To Pay U.S. Nearly $11 Million To Settle Claims Over FHA-Insured Mortgages Issued By Former Rockford Office,
• Settlement Agreement.