A lawsuit alleging that IBERIABANK Corp. made false claims on residential loans that are insured by the Federal Housing Administration has been settled for nearly $12 million.

A federal whistleblower lawsuit was filed in 2015 against IBERIABANK under the False Claims Act by former employees Kelley R. Shackleford and Karen Mills.

The lawsuit alleges that the Lafayette, Louisiana-based firm certified that loans were eligible for FHA insurance between Jan. 1, 2005, and Dec. 31, 2014, even though they weren’t.

Source: Mortgage Daily