On April 8, the DOJ announced a $1.2 billion settlement with a San Francisco-based bank and the bank’s Vice President of Credit-Risk – Quality Assurance to resolve allegations that the bank submitted false claims for FHA insurance in connection with loans that did not meet FHA underwriting standards. According to DOJ, “[d]uring the period May 1, 2001 through on or about December 31, 2008, [the bank] (or its predecessor) submitted to HUD certifications stating that certain loans were eligible for FHA mortgage insurance when in fact they were not.” The settlement agreement further explains that when certain of these loans defaulted, HUD paid for the insurance claims out of the Mutual Mortgage Insurance Fund. In addition, the settlement agreement states that from January 2002 through December 2010, the bank failed to inform HUD that the bank’s quality assurance personnel had determined that some of the FHA-insured loans contained a material finding. In response to this failure to self-report, the DOJ also asserted claims against the bank’s VP of Credit-Risk – Quality Assurance, as the individual responsible for overseeing the bank’s self-reporting policy and procedures. Both the bank and the individual officer acknowledged responsibility for the alleged violations as part of the settlement agreement.