Trump administration eases risks for banks on false lending claims

The Trump administration said on Monday it would try to entice banks to offer more mortgages to low-income borrowers by reducing reliance on a Civil War-era law the Obama administration used in the wake of the subprime mortgage crisis to build bad-lending cases against big banks. The U.S. Housing and Urban Development (HUD) and Justice Departments announced they had struck an agreement wherein HUD would handle most enforcement of any violations of the 1863 False Claims Act, which the Justice Department had used to extract billions of dollars from banks.

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