The Draper, Utah-headquartered lender Academy Mortgage Corporation has agreed to pay $38.5 million to settle allegations that it improperly originated and underwrote mortgages insured by the Federal Housing Administration (FHA).

The Department of Justice‘s settlement announcement on Wednesday resolves a lawsuit filed by former Academy Mortgage underwriter Gwen Thrower in the Northern District of California under the whistleblower provisions of the False Claims Act. The law permits a private party to file a suit on behalf of the government and receive a portion of any recovery.

Thrower alleged that from January 2008 through April details ⇒

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