Golden First Mortgage Corp. agreed to a $36 million settlement of U.S. claims that the company — which allegedly saw 60 percent of government underwritten loans go into default since 2002 — defrauded a federal mortgage program, Bloomberg News reported on Wednesday. Prosecutors claimed Golden First, which underwrote about $707 million worth of loans beginning that year, falsely certified that it conformed to government lending standards, according to a complaint filed last year in Manhattan federal court. Owner David Movtady agreed to pay $300,000. In the settlement, approved by U.S. District Judge Jesse Furman, Golden First and Movtady said they submitted loans that were ineligible for Federal Housing Administration mortgage insurance, and failed to comply with U.S. regulations, including the requirement of an adequate quality control program.
