RBC To Pay $10.71 Million For 219 Ineligible FHA Loans

RBC Mortgage Company (RBC) has agreed to pay the United States more than $10.71 million to resolve allegations arising under the False Claims Act concerning 219 federally insured loans for mortgages submitted to the Federal Housing Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD), the Justice Department announced today. The government alleged that, between 2001 and 2005, RBC, a subsidiary of the Royal Bank of Canada, falsified documentation in support of loan applications, violated due diligence underwriting requirements and improperly submitted loans for endorsement by HUD that were not eligible for FHA insurance.