Bank buildings, representing Citigroup Accused of Spoofing

Wells Fargo, Goldman Sachs Settle Mortgage Lawsuits

It has been quite a few months since we have heard anything big about the continuing pursuit of mortgage fraud lawsuits. However, that silence changed last week with the announcement on Friday of a $1.2 billion settlement by Wells Fargo. It was followed today by a $5 billion settlement agreement with Goldman Sachs. The Justice...

Close-up of person inserting bank card into ATM

Goldman Sachs to Settle Mortgage Fraud Issues for $5.1 Billion

Goldman Sachs announced a tentative agreement yesterday with the Department of Justice, two state governments and a few other entities concerning federal and state investigations into the investment bank’s mortgage-backed securities practices prior to the financial crisis. Goldman is going to pay a $2.4 billion civil monetary penalty as well as provide consumer relieve including...

Whistleblower Set to Receive Award in JP Morgan Settlement

The U.S. District Court for the Southern District of New York (Manhattan) unsealed a whistleblower lawsuit against financial services firm JPMorgan this week. The qui tam lawsuit, originally filed in January 2013 by Keith Edwards of Louisiana, accused JPMorgan of violations of the False Claim Act for mortgage fraud. In the settlement, JPMorgan acknowledged its wrongdoing...

100 Dollar Bills representing settlement and False Claims Act

Judge Says $1 Million Fine Too Low for Countrywide Mortgage Fraud

A federal judge has signaled that $1 million is too low of a penalty for those responsible for the Countrywide mortgage fraud debacle. At a hearing last week in a Manhattan federal court, Judge Jed S. Rakoff, declared that such a penalty would be a “windfall” for Bank of America, Corp., (“BofA”) the entity legally responsible for...

Close-up Photography Two Brown Cards, representing foreign currency

Bank of America Accused of Mortgage Fraud in Qui Tam Suit

Just weeks after being found liable for violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”), Bank of America, Corp. (“BofA”) is again facing allegations of mortgage related fraud. This time the lawsuit asserts that BofA defrauded the federal government and multitudes of borrowers by gaming the Home Affordable Refinance Program (“HARP”). The Federal...

Low Angle View of Office Building Against Clear Sky, representing whistleblower award.

Major Win Against Mortgage Fraud by U.S. Justice Department

U.S. Department of Justice Scores Major Win Against Mortgage Fraud This week the U.S. Department of Justice (“DOJ”) announced a significant victory in the fight against mortgage fraud. A federal jury in the Southern District of New York found Bank of America Corp. (“BofA”) and former Countrywide executive, Rebecca Mairone, liable for civil fraud after a...

Washington DC Capitol Building where whistleblower statutes have been discussed, representing whistleblower protections and the CHOICE Act

Government Settles $158 Million Mortgage Fraud Suit With Citigroup

Government Settles $158 Million Mortgage Fraud Suit With Citigroup This past week, Citigroup Inc. came to a $158 million settlement with the Justice Department over the Mortgage division’s fraudulent loan origination and lending practices. Thanks to the work of a courageous whistleblower, the government was able to hold Citigroup accountable. The settlement here comes on...

Bank of America Settles Billion Dollar Mortgage Fraud Case

On February 9, 2012, the Justice Department announced the settlement of one of the largest False Claims Act cases relating to mortgage fraud in history. Bank of America (BOA) and its Countrywide Financial Subsidiaries will have to pay upwards of $1 billion for reckless behavior in underwriting loans to unqualified borrowers. These loans were insured...

Cornice of old national bank, representing Deutsche Bank and whistleblowers

U.S. Steps In: Allied Home Mortgage False Claims Act Lawsuit

U.S. Intervenes in False Claims Act lawsuit against Allied Home Mortgage As reported by Bob Van Voris and Patricia Hurtado here Allied Home Mortgage Capital Corp., which last year claimed to be the biggest closely held mortgage broker in the U.S., was sued by federal authorities for alleged fraudulent lending practices. The U.S., by and through the...

Working Overtime As A Mortgage Loan Officer?

Working Overtime As A Mortgage Loan Officer? If you are employed as a mortgage loan officer and are performing “typical mortgage loan officer duties”, you may be entitled to overtime premium pay if you have worked over 40 hours in a workweek. Last month, the U.S. Department of Labor, Wage & Hour Division, provided its...

Tag: mortgage fraud