Articles Posted in MetLIfe Insurance pays $123.5 million in mortgage security case

MetLife Inc. is paying more than $123.5 million to resolve false claims allegations on government-insured loans, originated residential loans through subsidiaryMetLife Bank, N.A., and MetLife Home Loans LLC, which it acquired from First Horizon National Corp. in 2008. Payment of the $123.5 million to resolve allegations that the bank violated the False Claims Act, according to an announcement from the U.S. Attorneys Office for the District of Colorado.

The settlement follows a two-year investigation by HUD’s Office of Inspector General.

The Justice Department claims that MetLife Bank, a direct endorsement FHA lender, knowingly originated loans insured by the Federal Housing Administrationeven though they didn’t meet FHA guidelines.The violations allegedly took place from September 2008 until March 2012.