Whistleblower case against lender that Justice Dept. wanted tossed nets $38.5 million

(Reuters) – Utah-based lender Academy Mortgage Corp will pay $38.5 million to resolve claims it improperly originated and underwrote mortgages as part of a settlement of a whistleblower lawsuit that proceeded over the U.S. Department of Justice’s objections.

The settlement was announced on Wednesday by the Justice Department, whose approval was necessary to finalize a deal that Academy Mortgage struck with a former employee who sued the company on the government’s behalf under the False Claims Act.