Walter Investment Management Corporation (WIMC) has agreed to pay the U.S. government more than $29 million to resolve claims that they violated the False Claims Act by submitting fraudulent reverse mortgage claims to the Department of Housing and Urban Development (HUD). The initial allegations against Walter Investment Management were brought forth in a qui tam, or whistleblower, lawsuit by a former executive of the company, Matthew McDonald. McDonald will receive $5.15 million as his share in the settlement for uncovering the large-scale fraudulent activity.
The allegations against Walter Investment Management highlighted in Matthew McDonald’s whistleblower lawsuit are related to WIMC’s participation in HUD’s Home Equity Conversion Mortgages program. This program insures reverse mortgages, which are a mortgage product that allows elderly people to stay in their homes and draw on their equity.
Reverse Mortgage Solutions, REO Management & RMS Asset Management Subs
According to the accusations, between August 2009 and March 2015,WIMC, through its subsidiaries Reverse Mortgage Solution Inc., REO Management Solutions and RMS Asset Management Solutions, routinely submitted false claims in order to receive interest from HUD it was not actually entitled to....