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Andrew Schilling Quoted in Mortgage Banking Magazine Article, "The Litigation Factor"

Robert Stowe England

April 1, 2016

Andrew Schilling was quoted in Robert Stowe England's article, "The Litigation Factor," on April 1, 2016. 

Five years ago, federal false claims litigation was a tiny cloud on the horizon. Since then, the clouds have filled the sky and released a relentless deluge of lawsuits and settlements on lenders that originate home loans insured by the Federal Housing Administration (FHA).

And there’s no sign it is going to slow down or stop.

The false claims suits filed by the U.S. Department of Justice (DOJ) and Department of Housing and Urban Affairs (HUD) are brought under the False Claims Act, a Civil War–era law aimed at military contractors that defrauded the government. Its application has been expanded over the years to include fraud against Medicare and Medicaid and, more recently, against the FHA, a federal government agency.

The inclusion of GSEs in the settlement is troubling, according to Andrew Schilling, a partner who heads BuckleySandler LLP’s New York office and its False Claims Act and FIRREA practice. (FIRREA is the Financial Institutions Reform, Recovery and Enforcement Act of 1989.)

The potential use of false claims claiming fraud against Fannie Mae and Freddie Mac “is not just a theoretical point,” he says. There have been three such settlements.

Click here to read the full article at www.robertstoweengland.com.