Capmark Finance Inc. is under allegations that it made false statements on federal mortgage applications for insurance of nursing homes pursuant to a federal program under which HUD guarantees mortgages used to acquire healthcare facilities. According to the DoJ press release:
Capmark made false statements in HUD applications to guarantee mortgage loans made to acquire [two nursing home centers]. After accepting Capmark’s applications for mortgage insurance, HUD was forced to pay $25,895,701.21 when both [centers] defaulted on their loans.
“Mortgage fraud is a top priority for this Administration, especially when public dollars are at stake,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “This complaint sends a clear message that we will aggressively pursue allegations of fraud on federal mortgage insurance programs, which are so vitally important to this economy.”
To report HUD-backed mortgage fraud, contact Frohsin & Barger.