Finance company says it will pay $4.6 million to settle charges that it sought federal insurance on expired mortgage loans.
WASHINGTON, National City Corp. has agreed to pay $4.6 million to settle allegations that it sought federal insurance for 58 mortgage loans that were already past due, the Justice Department said Thursday.
The financial services provider applied for insurance coverage from the Federal Housing Administration under a program intended to encourage banks to make loans to low and moderate income borrowers, the department said.
The insurance lowers the costs of the loans by protecting lenders in the case of default, the department said.
A spokesman for National City didn't immediately return a call seeking comment.
Shares of Cleveland-based National City (NCC, Fortune 500) rose 2 cents to $5.75 in later afternoon trading.
Before You Start
- Think about how you would pay for routine expenses if you or another income-earning adult in your home were to suffer a disability and stop working?
- Ask your employer whether disability income insurance is offered as an optional workplace benefit.
- If you're an employer, consider offering it as a benefit to attract and retain desired workers.
- If you already own disability income insurance, take a fresh look at the policy to learn about the level of coverage it provides, eligibility requirements, etc.
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