The Department of Justice (DOJ) reported settlements and judgments totaling over $543 million in the areas of housing and mortgage fraud in 2017. The excessive number of loan defaults and fraud of this nature in the mortgage and banking industry led to a financial crisis not seen since the early part of the 20th century. Said Acting U.S. Attorney Brian Stretch, "Misconduct in the mortgage industry helped lead to a destructive financial crisis that spanned the globe."

Examples

In the largest banking and mortgage settlement in U.S. history, in 2014 Bank of America was ordered to pay back the government $17 billion for allegedly defrauding government agencies, investors, and mortgage holders. The company acknowledged that it sold billions of dollars of Residential Mortgage-Backed Securities (RMBS) without disclosing to investors key facts about the quality of these loans. When the RMBS collapsed, federally insured financial institutions (i.e., the American taxpayer) suffered billions of dollars in losses. The bank also admitted that it originated risky mortgage loans and lied about the quality of those loans to Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).

In the largest recovery for loan origination violations in the history of the FHA, Wells Fargo in 2016, agreed to pay $1.2 billion. The bank admitted that it certified to the Department of Housing and Urban Development (HUD), from 2001 through 2008, that certain residential home mortgage loans were eligible for FHA insurance when the company knew they were not. This resulted in taxpayers having to pay FHA insurance claims when some of those loans defaulted.

NC Whistleblower Attorneys. Want to Talk?

In recent years, banking and mortgage fraud led to severe economic consequences that initiated a domino effect on economies worldwide. Thanks to courageous whistleblowers, many of these misdeeds were exposed. While it is the whistleblower who initiates 80% of fraud against the government that is exposed, the vast majority of it goes undetected.

If you suspect fraud against the federal or state government, let's talk. We are here to help put you at ease as we try to help you determine — confidentially and discretely — if you should move forward with a whistleblower/qui tam claim. We appreciate the struggle you may be facing. That is why we have a You-First policy in place. We will try to help protect you regardless of your involvement.

Contact us or call 1-844-520-2889.

If we decide to take your case and you don't get a reward for reporting fraud, you owe us nothing.

Prefer we contact you?(100% confidential)
Submission of any information to ncwhistleblowerattorneys.com does not constitute an attorney-client relationship. Our attorneys are licensed to practice law in North Carolina.