A civil fraud lawsuit in New York alleging a mortgagee on government-insured loans failed to follow program rules has been settled for more than $1 million.

Residential Home Funding Corp. was approved by the Federal Housing Administration as a direct endorsement lender from 2006 until 2012.

But the White Plains, New York-based mortgage banking organization is accused of failing to maintain a compliant quality-control program.

Source: Mortgage Daily