National City to Pay $4.6 Million Settlement

Submitted by Ronald Tennant with Metrocities Mortgage:

Toledo Blade (OH) (05/23/08)
National City Mortgage Co.--the home lending division of National City Corp.--has reached a settlement in a civil case that accused it of defrauding a HUD program. The company is said to have deceived the government agency about the status of several dozen loans for which it was seeking HUD insurance. National City allegedly claimed that the loans, part of a HUD effort targeting low- and moderate-income families, were not past due when they actually were more than 30 days late. The mortgage subsidiary did not admit any wrongdoing, but it agreed to pay $4.6 million to settle the charges