Late last month, banking services company US Bank agreed to repay the government a staggering $200 million amid allegations it misrepresented residential home loans as suitable for insurance when, in fact, the borrowers either did not meet standard underwriting requirements or were not checked for creditworthiness at all. The settlement comes on the heels of [...]
It is not uncommon for lenders to outsource their foreclosure work to law firms and outside attorneys, particularly over the past several years when foreclosures hit an all-time high. However, lenders working with loans backed by the Federal Housing Administration (FHA) are required to submit accurate and detailed paperwork with regard to any default or [...]
In a recent case out of California, mortgage lender Reunion Mortgage, Inc. and its former affiliates have agreed to pay $1.04 million to settle allegations of False Claims Act violations. The case originated pursuant to an investigation by the Department of Housing and Urban Development’s Civil Fraud Division and resulted in the discovery of several [...]
The Department of Justice recently unsealed a False Claims Act lawsuit filed in the Southern District of New York alleging nine-figure fraud against the federal government pursuant to its Home Affordable Modification Program (HAMP). The program, which was implemented in 2009 to help struggling borrowers keep their homes, requires certain disclosures to borrowers by a [...]
In yesterday’s post, we began examining a recent audit of the Department of Justice with regard to its mortgage fraud division. Specifically, the Office of Inspector general reviewed several reports offered by the DOJ since the 2008 housing bubble burst and questioned the Department’s record-keeping and prioritization of this devastating crime. Surprisingly, despite the DOJ’s [...]
We regularly report on the effects of mortgage fraud, including several high-profile cases between the Office of Housing and Urban Development (HUD) and several large banking institutions. Mortgage fraud can occur in any number of ways, including false assertions by lenders that borrowers should qualify for mortgage insurance or failing to abide by underwriting standards [...]
If you have original information about possible fraud against the government, you may be considering speaking with a whistleblower attorney but are not sure whether it is worth the effort. While this is a common fear associated with qui tam lawsuits, there are also great benefits to filing your lawsuit. In today’s story, we discuss [...]
JP Morgan, which is currently the largest U.S. banking entity in terms of assets, agreed earlier this week to settle claims under the False Claims Act involving fraudulent assertions that certain home loans were appropriate for government-backed mortgage insurance. The bank, which is no stranger to settling matters with the federal government, agreed to pay [...]
Bank of America is facing yet another potential whistleblower lawsuit, and recently motioned the federal district court in California to dismiss the case. Many of Bank of America’s struggles stem from the 2008 economic crisis caused by the housing bubble burst. At the center of it all, along with a handful of other ne’er-do-wells, was [...]
After filing a 2009 qui tam lawsuit against Countrywide Financial on behalf of the United States government, whistleblower Kyle Lagow has learned that he will receive a relator’s share of $14.5 million. Lagow, who formerly worked as an appraiser with Countrywide subsidiary LandSafe Inc., accused the lender of fraudulently inflating appraisals on government-insured mortgage loans. [...]
