Freedom Mortgage to pay $113M to US government in settlement
WASHINGTON (AP) — Freedom Mortgage has agreed to pay $113 million to the U.S. government to settle allegations that it failed to comply with federal rules on mortgages.
The Justice Department said Friday that the Mount Laurel, New Jersey-based mortgage company didn't properly comply with Federal Housing Administration rules for mortgages it was generating and didn't monitor payment defaults.
The government says from 2006 to 2011, the company certified mortgage loans for FHA insurance that didn't meet federal requirements and therefore didn't qualify for the insurance.
Messages left with the company and its attorney weren't immediately returned.