NMLS# 3151

Wednesday, December 2, 2015

 RANLife Settlement with US Department of Justice
Public Statement
Written By Garr Smith
Sandy, Utah

RANLife has reached a final settlement with the US Department of Justice (DOJ) on behalf of the Department of Housing and Urban Development (HUD), to resolve allegations that RANLife violated the False Claims Act.  DOJ reviewed 96 files in the settlement.  RANLife endorsed thousands of FHA loans during the time period reviewed between 2007 and 2012.  Of the 96 files reviewed the negotiations with the DOJ centered on only 29 loan files that were underwritten between 2007 and 2010 that went into default and resulted in FHA insurance claims paid by HUD.   DOJ contends that certain files failed to comply with HUD’s rules and regulations with the underwriting and endorsing of loans with FHA insurance.  

RANLife disagreed with the DOJ that the FHA loans were underwritten incorrectly and that it violated the False Claims Act.  Nowhere in the settlement, nor the investigation, did HUD or DOJ address any concerns with Fraud or Systemic issues.  HUD has not provided any advice, or recommendations, as to changes in RANLife’s operations.  An FHA office tested some of the HUD-DOJ’s findings and determined that they were immaterial to the loans being insurable and would still receive an approve eligible through their automated approval systems.  Two of the files HUD-OIG had issues with were identified as files that RANLife used as test cases to get approved with delegated endorsement authority in 2007.  Both of these files were fully underwritten by FHA’s own underwriters and endorsed by FHA, not RANLife.  In this review by HUD-OIG they believed their own department of HUD, being FHA, couldn’t underwrite correctly.  This settlement was very frustrating for RANLife.  RANLife has always focused on compliance and a high level of loan manufacturing quality.

Because HUD is also a vital partner to RANLife we have chosen to settle with the US Department of Justice and HUD-OIG.  This settlement was not an admission of liability by RANLife, but a way to move past a very turbulent time in our country’s history.  RANLife will always be a willing and integral partner to FHA and HUD to help them meet their housing goals. 

This settlement with RANLife signifies the closing of the final chapter to the mortgage crisis of 2009.  RANLife is extremely excited for 2016 and we are growing in loan production, technology systems and employees.

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