Industry News

ABN AMRO settles with HUD for $41 million

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ABN AMRO Mortgage Group has struck a $41 million settlement with the U.S. government in a probe involving alleged falsifications in thousands of federally insured loans, the Department of Housing and Urban Development said today. The mortgage giant, one of the top 10 U.S. real estate lenders by volume in 2004, entered into a more than $41 million settlement with the U.S. government as a result of the probe, HUD said. The alleged falsifications affect about 28,000 loans, according to HUD. The settlement reimburses the FHA program for mortgage insurance losses caused by "lax procedures during the heyday of the housing boom," HUD Inspector General Kenneth Donahue said in a teleconference following the announcement of the settlement. ABN AMRO agreed to pay the government $16.8 million and will not submit the claims for 783 defaulted loans, saving the Federal Housing Administration insurance fund about $24.35 million in losses, according to HUD. "They (ABN AMRO) acted as a good corpo...