Finance of America Mortgage to Pay $14.5 Million to Resolve Whistleblower Lawsuit Related to FHA Fraud. Exposing Misconduct.

Finance of America Mortgage to Pay $14.5 Million to Resolve Whistleblower Lawsuit Related to FHA Fraud

December 12, 2018

ROCHESTER, N.Y.Dec. 12, 2018 /PRNewswire/ — The United States Department of Justice announced today that Finance of America Mortgage, LLC (“FAM”) has agreed to pay the United States $14.5 million 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 LP (“Gateway”), which FAM acquired in 2015.

The settlement resulted from a lawsuit filed under the qui tam whistleblower provisions of the False Claims Act by Debra McGeehan, a former quality control underwriter for Gateway. Ms. McGeehan worked for Gateway during portions of 2009 to 2015.

“It is extremely frustrating when a mortgage company identifies issues with loans as part of its quality control process, but then deliberately ignores those findings,” said McGeehan. “Gateway was only interested in its own financial interests, and was willing to ignore its own quality control findings in order to defraud the FHA program.”

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