Loading
TAMPA — Two Federal agencies are investigating Walter Investment Management Corp. companies, according to its newest quarterly financial report.
Walter Investment Management reports that on Oct. 2, the company received a subpoena from the U.S. Department of Housing and Urban Development, Office of Inspector General requesting documents and other information regarding curtailments (limits) on interest payments on home-equity conversion mortgage loans handled by Reverse Mortgage Solutions Inc. The subpoena also sought information on Reverse Mortgage Solutions agreements a with a third-party vendor to handle lender-owned real estate properties.
Walter Investment Management purchased the Spring, Texas, company in late 2012.
Separately, the company said it after it acquired the company it discovered that Reverse Mortgage Solutions made servicing errors and that it would take “a curtailment obligation liability” of $52.9 million on Sept. 30 to cover its best estimate of lifetime claims from the problems. The company says that while its potential exposure could include another $142.2 million in similar claims, it believes the additional liability would be assigned to others, including prior servicers and/or investors. However, the current HUD investigation may be unrelated to the servicing errors at Reverse Mortgage Solutions.
In addition, the Consumer Financial Protection Bureau has notified the Walter Investment Management affiliate Green Tree that the bureau's staff is considering recommending action against Green Tree for violations of various federal consumer financial laws. The Consumer Financial Protection Bureau is a new federal agency created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
The U.S. Securities and Exchange Commission filing says that Walter Investment Management doesn't have enough information to assess the outcome or impact of either investigation.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
