On February 7, 2017, the U.S. Attorney’s Office announced a $1.25 million civil settlement involving Franklin First Financial Ltd. and named individuals. The announcement states that the defendants admitted making improper payments that changed delinquency and default rates.
Read the source: U.S. Department of Justice · February 7, 2017 civil settlement
The issue in the case
The government alleged that payments on FHA-insured mortgages concealed early loan-performance problems and were routed through the Rainy Day Foundation. The DOJ announcement links the consent decree and identifies United States v. Rainy Day Holdings, LLC et al., Civil Action No. CV-15-5576.
Continue: Franklin First Financial: Regulatory Settlement Timeline
What the outcome does and does not establish
This was a resolution of civil claims with stated admissions. It should not be relabeled as a criminal sentence, an individual borrower’s refund, or a finding against every business using Franklin in its name.
Keep the company identity attached
The respondent was the Melville-based Franklin First Financial Ltd. Nothing in the cited announcement makes this a settlement by 1st Franklin Financial Corporation of Toccoa, Georgia.
Continue: Franklin First vs. 1st Franklin: Which Company Do You Mean?
Frequently asked questions
Was the settlement $2.399 million?
DOJ reported $1.25 million for these settling parties and a separate cumulative figure for settlements arising from the broader Rainy Day matter. Those figures should not be confused.
Sources
Read the original documents and company pages behind this guide.
- U.S. Department of Justice · February 7, 2017 civil settlement www.justice.gov · reviewed October 16, 2026
