Finance of America Mortgage LLC has agreed to pay to settle a False Claims Act lawsuit involving mortgage fraud. The lawsuit relates to Federal Housing Administration loans originated by Gateway Funding Diversified Mortgage Services, which Finance of America acquired in 2015.
For example, in a email, Gateway’s senior vice president of compliance and credit risk sent an email to Gateway’s executive team, noting that there were specific underwriters and branch offices “who show a pattern of poor performance.”
While Gateway identified loans during the quality-control process that had material underwriting errors, Gateway did not routinely report those errors to HUD, as required. As a result, HUD incurred substantial losses when those loans suffered defaults and insurance payments were subsequently paid to Gateway.
As part of the settlement, for the role she played in helping to resolve the case. Under the False Claims Act, individuals who identify fraud might be entitled to an award for alerting the government to it. McGeehan more than