Walter Investment affiliate pays $63M penalty

TAMPA -- Walter Investment Management Corp. says it will pay $63 million in fines and restitution related to a federal investigation that claims its mortgage servicer affiliate, Green Tree Servicing, “mistreated” mortgage borrowers trying to save their homes from foreclosure.

Tampa-based Walter, which trades on the NYSE under the symbol WAC, did not admit or deny any of the allegations levied by the Federal Trade Commission and the Consumer Financial Protection Bureau on Tuesday. However, the company says it will pay $48 million to impacted borrowers and a $15 million fine to end the nearly five-year investigation.

“We believe this resolution is in the best interest of Green Tree, our consumers, our clients and our shareholders,” says Mark O'Brien, chair and CEO of Walter Investment, in a filing with the U.S. Securities and Exchange Commission. “As a company, we have been and continue to be committed to properly serving homeowners and helping them remain in their homes. We continue to develop and deploy our best practices in our servicing operations, and believe these standards will serve us well as we partner with our consumers to support them in their goal to achieve sustainable homeownership.”