May 16, 2017 / 7:14 PM / 8 months ago

CORRECTED-Financial Freedom settles over reverse mortgage lending for $89 mln

(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 (Reuters) - 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

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