Walter Investment Management has reached a settlement with federal authorities over reverse-mortgage practices at a business unit.
Walter did not disclose financial details or other terms of the settlement with the Department of Housing and Urban Development and Justice Department. Walter, based in Tampa, Fla., had previously said that it reached a tentative settlement agreement. Walter has accrued "substantially all" of the $29.6 million in settlement payments for the claims, as of June 30, according to a Tuesday
The settlement concerns practices at Walter's Reverse Mortgage Solutions subsidiary, which had been alleged to have violated the False Claims Act. The allegations dealt with Walter's participation in the Federal Housing Administration's reverse mortgage program for seniors, known as HECM.
Walter did not admit wrongdoing in the settlement, and the settlement does not contain a finding of wrongdoing.
"Reverse Mortgage Solutions is fully committed to, and strongly supportive of, the HECM program and the benefits it provides to its customers," Mark O'Brien, Walter's chairman and chief executive, said in the release.
