Mortgage Co. Settles Loan Insurance FCA Case For $14.5M

Law360 (December 12, 2018, 10:16 PM EST) -- Finance of America Mortgage will pay $14.5 million to resolve a whistleblower lawsuit alleging that a predecessor company originated and underwrote deficient loans backed by federal insurance in violation of the False Claims Act, the U.S. Department of Justice announced Wednesday.

Finance of America Mortgage LLC has agreed to settle over claims that Gateway Funding Diversified Mortgage Services LP, acquired by FAM in 2015, knowingly created loans that did not live up to the requirements of the Federal Housing Administration's insurance program, in which Gateway had participated as a direct endorsement lender, or DEL, the DOJ claimed.

DELs can originate, underwrite...

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