Walter to pay US$29.63m in reverse mortgage settlement

New York

WALTER Investment Management Corp agreed to pay US$29.63 million to resolve allegations that it submitted false claims related to a US Department of Housing and Urban Development (HUD) programme that insures reverse mortgages.

The settlement announced last Friday by the US Department of Justice resolved claims that Walter violated the federal False Claims Act through its servicing of mortgages insured under HUD's Home Equity Conversion Mortgages programme.