The Oklahoma-based successor in interest of a reverse-mortgage lender accused of writing loans that failed to meet U.S. Department of Housing and Urban Development (HUD) requirements has agreed to pay the Federal government $2.47 million to dismiss charges that doing so violated the False Claims Act.
According to prosecutors, the firm used a form prior to 2010 that did not meet HUD and other government standards as it allegedly contained the loan amount and other verbiage that the Federal government said was meant to improperly influence the appraised value of the property in question.
The reverse-mortgage loan program is a mechanism by which homeowners of later age can use their home’s value to provide income by withdrawing some portion of the equity they now have in it. Reverse mortgages are insured by the Federal Housing Administration (FHA), which is a component of HUD, and the mortgages are heavily dependent upon an accurate appraisal of its worth.
In the agreement, the lender has agreed to pay $1.97 million to resolve the allegations against it under the False Claims Act, plus another $500,000 to HUD to resolve its administrative liability. The lender purchased the entity accused of using the sub-standard paperwork in 2013. Investigators say the lender used the improper form until the spring of 2010.
The Law Offices of Bjorn Brunvand have been representing people charged with capital murder, felony drug charges, drunk driving, government fraud, and white-collar crimes for over a quarter century. Contact our office today to discuss your Tampa Bay-area state or federal charges.