The mortgage subsidiary of Miami-based home builder Lennar Corp. provided information on Federal Housing Administration (FHA) loans to the U.S. Department of Justice in response to a subpoena.
The company disclosed the subpoena in a Form 10-K annual report filed Thursday with the U.S. Securities and Exchange Commission (SEC) and reported that “communications are ongoing” with the Department of Justice, which “to date has not asserted any claim for damages or penalties.”
Lennar reported in the SEC filing that the subpoenaed information centers on “the adequacy of certain underwriting and quality control processes related to Federal Housing Administration loans originated and sold in prior years.”
Lennar also said in the SEC filing that it doesn’t believe the Department of Justice inquiry will have “a material adverse effect on our business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have change from the time the agreement for purchase or sale was entered into.”– Mike Seemuth