National City Mortgage Lawsuit

$4.6 million payout resolves mortgage suit.

Columbus, OH: (May-24-08) The Justice Department brought charges against Miamisburg-based National City Mortgage, the mortgage division of National City Corp., alleging that it submitted ineligible mortgages for federal backing. The federal agency stated that the mortgage company, which has been a part of the Cleveland-based bank since 1989, submitted 58 loans for insurance coverage through the Department of Housing and Urban Development's federal Housing Administration. The suit stated that the administration had loan payments more than 30 days past due during an audit period between May 2002 and April 2004.

Sources familiar with the nature of the dispute stated that National City Mortgage can underwrite FHA-insured mortgage loans for moderate- and low-income families, as well as submit them for federal endorsement. The catch is that, when it seeks FHA coverage more than 60 days after a closing for a late endorsement loan, it must certify loan payments are current.

The case, led by the Justice Department's civil division and the US Attorney General's Office for the Eastern District of Michigan, reached settlement with National City Mortgage agreeing to pay $4.6 million to the federal government to resolve allegations. National City spokespersons stated that the company denied the government's allegations, and didn't claim any liability. It was announced that the 58 loans in the settlement represent a fraction of 1% of the loans the company issued during the audit period.

National City Mortgage in the News

[COLUMBUS BUSINESS FIRST: National City Mortgage]
Search for: Nat City Mortgage agrees to pay HUD $4.6M

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below. Related Law Suits

National City Mortgage Law Suit and Settlement

$13.75 Million Settlement Approved in Leap Class Action Law Suit and Settlement

$5.5 MIllion Settlement Law Suit and Settlement

$2.1 Million Settlement Law Suit and Settlement

Too Much Debt Law Suit and Settlement

Treasurer Embezzlement Law Suit and Settlement

Loan Agreement Law Suit and Settlement

Jail Funds Law Suit and Settlement

Contract Extortion Law Suit and Settlement

Auto Financing Law Suit and Settlement

See more stories from this source.

Class Action Law Suits

Newsworthy Law Suits
Defective Products Lawsuits
Discrimination Lawsuits
Drug & Medical Claims Lawsuits
Food & Dietary Supplement Lawsuits
Insurance Lawsuits
Malpractice Lawsuits
Personal Injury Lawsuits
Real Estate Lawsuits
Investment Fraud Lawsuits

is===1 Lawyers! Become an Approved Expert to Answer Questions.

Apply Now!
You'll get lots of targetted traffic to your website and new client leads!