A whistleblower will receive nearly $2 million for her role in a lawsuit alleging Universal American Mortgage Company LLC approved loans for government insurance that didn’t qualify.

As a mortgagee with direct endorsement authority from the Federal Housing Administration, Miami-based Universal American was empowered to approve FHA loans itself.

The lender, a subsidiary of home builder Lennar Corp., is required to follow FHA program rules to ensure proper underwriting, certification and quality control to prevent and correct underwriting deficiencies.


Source: Mortgage Daily