The former reverse mortgage lending unit of failed IndyMac Bank FSB has agreed to a government settlement that will cost it $89 million.

Former IndyMac-subsidiary Financial Freedom Senior Funding Corp. was once one of the largest reverse mortgage originators in the country.

When Pasadena, California-based IndyMac failed in July 2008, Financial Freedom became the property of OneWest Bank FSB.

Source: Mortgage Daily