Press release from Business Wire
The Shuman Law Firm Investigates Flagstar Bancorp, Inc.
Friday, March 16, 2012
BOULDER, Colo. (Business Wire) -- The Shuman Law Firm today announced that it is investigating potential claims against certain officers and directors of Flagstar Bancorp, Inc. (“Flagstar" or the "Company”) (NYSE: FBC).
The Firm's investigation focuses on facts alleged in a U.S. Department of Justice (“DOJ”) lawsuit filed February 24, 2012, in which DOJ contends that the Company had been improperly approving thousands of residential home mortgage loans for government insurance for more than a decade.
Specifically, the DOJ alleges that the Company: (i) used unauthorized staff employees in the loan approval process; (ii) paid substantial incentive awards to these unauthorized employees for exceeding certain quotas; (iii) permitted underwriters to submit false certifications to the Federal Housing Administration ("FHA") and the U.S. Department of Housing and Urban Development ("HUD"); and (iv) misled FHA and HUD by certifying that the loans had been fully underwritten by properly registered and sufficiently experienced underwriters when they had not. The DOJ lawsuit claims that as a result of the foregoing, thousands of loans were approved for government insurance that did not qualify for insurance and when the loans defaulted, HUD was forced to cover the losses.
The Company reached a settlement with the DOJ on February 24, 2012, the same day the complaint was filed, under which Flagstar must pay $15 million in thirty days and up to an additional $117.8 million if it meets certain criteria. In addition, Flagstar is required to repay $266.7 million that it received as part of the Troubled Asset Relief Program.
If you currently own Flagstar common stock and are interested in discussing your rights as a shareholder, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 974-8626 or email Mr. Shuman at email@example.com or email Mr. Glenn at firstname.lastname@example.org.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and shareholder derivative actions.
The Shuman Law Firm
Kip B. Shuman, Esq., 866-974-8626
Rusty E. Glenn, Esq., 866-974-8626