Sources familiar with the nature of the dispute stated that National City Mortgage can underwrite FHA-insured mortgage loans for moderate- and low-income families, as well as submit them for federal endorsement. The catch is that, when it seeks FHA coverage more than 60 days after a closing for a late endorsement loan, it must certify loan payments are current.
The case, led by the Justice Department's civil division and the US Attorney General's Office for the Eastern District of Michigan, reached settlement with National City Mortgage agreeing to pay $4.6 million to the federal government to resolve allegations. National City spokespersons stated that the company denied the government's allegations, and didn't claim any liability. It was announced that the 58 loans in the settlement represent a fraction of 1% of the loans the company issued during the audit period.
National City Mortgage in the News[COLUMBUS BUSINESS FIRST: National City Mortgage]
Search for: Nat City Mortgage agrees to pay HUD $4.6M
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Last updated on Jun-4-08