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Celink Will Pay $4.25 Million HECM Lawsuit Settlement

Celink has finally come to an agreement in a civil settlement with the U.S. Justice Department after a False Claims Act violation in relation to its Home Equity Conversion Mortgage products.

The company will pay $4.25 million to the Unites States to resolve the allegations that were made, according to a press release from the US Attorney's Office for the Middle District of Florida.

"The release details the allegations made by the United States by saying that Celink allegedly obtained insurance payments for interest from the Federal Housing Administration (FHA), despite 'failing to disclose on the insurance claim forms that the mortgagee was not eligible for such interest payments because it had failed to meet deadlines relating to obtaining an appraisal of the property, commencing foreclosure proceedings, and/or exercising reasonable diligence in prosecuting the foreclosure proceedings to completion,' the release reads," according to Reverse Mortgage Daily.

"Because of this, between November 2011, and May 2016, the mortgagees on the affected reverse mortgage loans serviced by Celink allegedly 'obtained additional interest that they were not entitled to receive.'"

Maria Chapa Lopez, a U.S. attorney for the District Court for the Middle District of Florida, believes the settlement is important in protecting "the financial solvency of vital financial programs designed to benefit American's seniors," according to the report.

To learn more about this settlement, click on the image above.

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