Corporate report

Walter Investment Management settles false-claims lawsuit
Tampa-based Walter Investment Management Corp. (symbol: WAC; recent price: $15.88) agreed to pay $29.63 million to resolve allegations from a whistleblower that its subsidiaries Reverse Mortgage Solution Inc., REO Management Solutions LLC and RMS Asset Management Solutions LLC violated the False Claims Act.

The case involved reverse mortgage loans, which are designed to allow older people to access home equity, and are insured by the U.S. Department of Housing and Urban Development (HUD).

The government had charged that from August 2009 to March 2015, Reverse Mortgage Solution submitted false claims for interest to HUD by failing to disclose it had not met required deadlines.