On September 13, 2016, Regions Bank agreed to pay $52.4 million to resolve allegations that it violated the False Claims Act in relation to its role as a direct endorsement lender (“DEL”) in the FHA insurance program. As a DEL, Regions was required to follow certain program rules, but was able to approve a mortgage loan for FHA insurance without review by the FHA. As part of its settlement, Regions has admitted that it certified mortgage loans for FHA insurance that did not meet the required underwriting requirements regarding borrower creditworthiness. Regions also admitted, among other failings, that it did not maintain a fully compliant quality control program or consistently review an adequate sample of FHA-insured loans. DOJ Press Release
