The lender has agreed to pay $2.4 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 by knowingly underwriting ineligible reverse mortgages.
The head of the DOJ's civil division, Brian M. Boynton, said the settlement will help to protect the financial integrity of the HECM program and to pursuing those who seek to abuse it.
Damon Smith, general counsel for HUD, stated that this case sought to redress serious violations of FHA requirements that posed a risk to the HECM program.
Nutter consistently maintained its innocence throughout the legal proceedings, according to attorneys representing the company who previously spoke with HousingWires Reverse Mortgage Daily (RMD).
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