Celink Settles Department Of Justice Lawsuit For $4.25 Million

Department of Justice Accused Celink Of Wrongfully Collecting Interest On FHA Insurance 

Celink
Celink has settled a federal lawsuit alleging that it violated the False Claims Act servicing of reverse mortgage loans. The Michigan-based servicer agreed to fork out $4.25 million to resolve the matter. However, they did not admit liability nor did they accept responsibility for collecting the illegal fees.
The suit alleged that Celink received interest on insurance payments from FHA for loans that were ineligible for such payments.
The Department of Justice alleged the loans did not meet the requirements for interest payments. Federal lawyers allege they were not eligible for a number of reasons.
The loans did not meet deadlines for obtaining a property appraisal. They also failed to meet deadlines when commencing foreclosure proceedings. The mortgage servicer also failed to exercise reasonable diligence in completing the foreclosure.
The reverse mortgage servicer allegedly received interest payments from November 2011 to May 2016.
The lawsuit was resolved without the servicer admitting liability.

Comments

Post a Comment

Popular posts from this blog

Amateur Home Flippers Get Harsh Wake Up Call

Image
Amateur Home Flippers Get Harsh Wake Up Call As They Learn As It’s Not As Easy As They Show On TV A new generation of amateur home flippers is getting caught with their pants down.  The last generation of amateur home flippers thought they could make millions after watching four or five episodes of  The Apprentice . These clueless and wannabe Donald Trumps made up nearly 50% of the foreclosures in Florida after the crash. This latest generation of amateur home flippers has emerged  thanks to HGTV . However, home flipping isn’t as easy as it appears on TV.  Prashant Gopal at Bloomberg reports: Many newbie investors are encountering their first slowdown and facing losses from houses that take too long to sell. Meanwhile, they face steep payments on a kind of high-interest debt—known as ‘hard money’ loans—that helped power the boom. Property flips made up 6.5% of U.S. sales in the fourth quarter of 2018.  Read more at MFI-Miami
Read more

Deutsche Bank Plans To Foreclose On Trump Real Estate

Image
  Deutsche Bank Plans To Foreclose On Trump Organization Properties If They Can’t Dump Trump’s $340 Million Debt Deutsche Bank plans to end the bank’s relationship with the Trump Organization and Donald Trump after the U.S. elections. The Trump Organization owes the bank about $340 million. The loans are against Trump’s golf course in Miami and hotels in Washington and Chicago. Deutsche Bank gave the Trump Organization loans that have Trump paying only interest on the loans so far. The entire principal is outstanding on two of the three loans. The loans come due in 2023 and 2024. The three loans against Trump’s properties and start coming due in two years. The loan payments are current on payments and personally guaranteed by the president. Read More At MFI-Miami
Read more

Is Mark Stopa Going To Prison? Inquiring Minds Want To Know!

Image
  The FDLE And FBI Are Wrapping Up Their Investigation Into Mark Stopa’s Alleged Equity Skimming Scheme. Is Mark Stopa Going To Prison? Rumors are running rampant in the Tampa/St. Petersburg area about Mark Stopa going to prison. MFI-Miami has learned from multiple sources that the criminal investigation into Mark Stopa’s alleged equity scam is wrapping up. So, the million-dollar question is, is Mark Stopa going to prison and for how long? No one is saying how long he could be going to prison. A jury will have to decide that. It also depends on what federal and state prosecutors put in the indictment(s). Yes, sources are also saying the indictments are coming sooner than later. We can expect to see them by the end of the year.  Read More At MFI-Miami
Read more