“Lenders who knowingly force the federal government to underwrite loans which are materially deficient are putting each homeowners and the state budget in danger,” said Brian Boynton, chief deputy attorney general and head of the Department of Justice’s Civil Division.
The Utah-based mortgage company pays the US government $38.5 million without admitting or denying liability. The Department of Justice said there was “no determination of liability” within the settlement.
“Despite the U.S. government repeatedly asking the court to dismiss the case, Academy made a business decision to settle the case to mitigate the extra costs and disruption of further litigation,” Academy Mortgage said in a press release. “As the Department of Justice stated, ‘Claims settled within the settlement are allegations only and liability has not been established.'”
Thrower will receive $11,511,500 as his share of the allegations.
“The settlement announced today is the results of the relator’s efforts to advance this case in litigation and complements the department’s efforts to forestall abuse of presidency programs designed to support home ownership,” Boynton said.