October 19, 2021

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Mortgage News

High Court Won’t Review Revival of VA Mortgage Fee Fraud Suit

The U.S. Supreme Court announced Monday that it will not review a decision to reanimate a False Claims Act lawsuit alleging Mortgage Investors Corp. falsely confirmed to the VA that only permitted fees were charged under a veteran mortgage loan program.

The loan company stated in its petition for review that the U.S. Court of Appeals for the eleventh circuit made a mistake in determining that two whistleblowers met the FCA standard for materiality set by the Supreme Court decision in Universal Health Servs. Inc. versus United States ex rel. Escobar.

Mortgage investors said the lawsuit should have ended for lack of materiality because …