Congress is on the verge of setting a dangerous precedent. As part of the Build Back Better Act, it has added two provisions equivalent to a “get out of jail free card” for Big Banks that violate federal law when they hand out billions in federal mortgage-related benefits. The two provisions create exemptions to False Claims Act liability by creating blanket immunity from liability when banks fail to exercise due diligence, violate FHA housing regulations, or even directly violate federal laws such as the Truth in Lending Act.
Source:
- Kohn, Kohn & Colapinto: Don’t Use “Build Back Better” to Sabotage the False Claims Act
