March 31, 2020

Oklahoma-based mortgage lender Finance of America Reverse (FAR) has agreed to pay $2.47 million to resolve allegations that its predecessor, Urban Financial Group Inc., violated federal loan requirements as well as the False Claims Act while participating in the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) reverse mortgage program, which allows seniors to supplement their incomes by withdrawing equity on their homes through federally-insured loans.  Urban Financial Group, which was acquired by FAR in 2013, had been accused of originating and underwriting hundreds of HECM loans using forms that improperly influenced home appraisal values.  DOJ; USAO DC

Tagged in: FCA Federal, Government Loan Programs,