Lawyers for the U.S. and
The U.S. sued
The suit by Manhattan U.S. Attorney
At a hearing yesterday, attorneys for both sides told U.S. District Judge
Furman warned lawyers that he wouldn’t give them a four-month extension to collect evidence because they'd agreed on their own to pause the process. The judge said he considered a two-month extension a "gift" to the parties.
"I'm going to give you two months," Furman said, according to a transcript of the hearing. "You did this at your peril, as far as I'm concerned. And had you asked me four months ago for leave to do this, I might have had a different view, but having taken this upon yourselves, you took the chance and you’re going to suffer some consequences."
"Our good-faith efforts to work with the federal government on a possible resolution of the complaint have not yet resulted in a settlement," Goyda said in a statement. "We will move forward with presenting our case in support of our prudent and responsible FHA lending practices."
Furman last year dismissed some claims because the government filed them too late. The bank had sought dismissal of the entire case.
The FHA program enabled the bank to certify loans for government insurance without prior agency approval.
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