Finance of America Mortgage settles FHA mortgage fraud lawsuit for $14.5 million

Finance of America Mortgage has agreed to pay the U.S. government $14.5 million to settle a whistleblower lawsuit involving mortgage fraud. The payment settles the claim that Gateway Funding Diversified Mortgage Services, which FAM owns, knowingly originated and underwrote deficient mortgage loans insured by the FHA in violation of the False Claims Act.