FINANCE OF AMERICA REVERSE AGREES TO PAY $2.47 MILLION TO RESOLVE ALLEGED LIABILITY FOR FHA-INSURED REVERSE MORTGAGE LENDING VIOLATIONS

摘要

Finance of America Reverse (FAR) has agreed to pay $2.47 million to resolve allegations that a predecessor entity, Urban Financial Group Inc., violated the False Claims Act (FCA) by knowingly originating and underwriting hundreds of Home Equity Conversion Mortgage (HECM) loans insured by the Federal Housing Administration (FHA) that did not meet critical HUD requirements. FAR will pay $1.97 million to resolve FCA claims and an additional $500,000 to HUD to resolve its administrative liability. FAR is a mortgage lender based in Tulsa, OK, that acquired Urban Financial Group Inc. in November i 2013.