(In 2nd paragraph, corrects to show that Financial Freedom is a
unit of CIT Group Inc, not that it is privately held)
WASHINGTON May 16 Mortgage lender Financial
Freedom agreed to pay a settlement exceeding $89 million to
resolve allegations it broke laws stemming from its role in a
federally insured reverse mortgage program, the U.S. Justice
Department said on Tuesday.
The Austin, Texas-based company, a unit of CIT Group Inc
, is alleged to have tried to obtain insurance payments
for interest from the Federal Housing Administration despite
failing to properly disclose that mortgagees were ineligible for
such payments, the department said in a statement.
(Reporting by Eric Walsh; Editing by Eric Beech)