Walter, US in $29.63 million reverse mortgage loan settlement

Walter Investment Management Corp agreed to pay $29.63 million to resolve allegations that it submitted false claims related to a US Department of Housing Development program that insures reverse mortgages, the US Department of Justice said on Friday. The Justice Department alleged that a Walter unit from August 2009 to March 2015 submitted claims for interest payments to which it was not entitled.
It also alleged that Walter from July 2010 to October 2014 submitted claims to HUD for the reimbursement of unlawful referral fees by falsely representing them as lawful sales commissions. Reverse mortgages let homeowners, typically the elderly, borrow against the equity in their homes, with no repayments required until the borrowers die or the homes are sold.