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Report Fraud, Waste and Abuse
September 30, 2016
  • Housing
2016-AT-1802
2016-AT-1802.pdf

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, assisted the Department of Justice, Civil Division, Commercial Litigation Branch and the U.S. Attorney’s Office of the Northern District of Georgia in the civil investigation of Branch Banking and Trust Company (BB&T). 

Based in part on our review, the Federal Government alleged that BB&T violated the False Claims Act when it originated and underwrote FHA mortgage loans that did not meet applicable requirements.  The Federal Government also alleged that BB&T did not maintain a quality control program that complied with requirements.  On September 29, 2016, BB&T entered into a settlement agreement with the Federal Government to pay $83 million to avoid the delay, uncertainty, inconvenience, and expense of lengthy litigation.  Of the total $83 million settlement, HUD FHA was to receive $35.7 million, and the remaining portion will be paid to other Federal entities.