SUIT Alleges BANKS And MORTGAGE Companies CHEATED Veterans And U.S. Taxpayers

Segami

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:32 AM
Original message

SUIT Alleges BANKS And MORTGAGE Companies CHEATED Veterans And U.S. Taxpayers

:smoke: :smoke:

" Some of the nation�s biggest banks and mortgage companies have defrauded veterans and taxpayers out of hundreds of millions of dollars by disguising illegal fees in veterans� home refinancing loans, according to a whistleblower suit unsealed in federal court in Atlanta. The suit accuses the companies, including Wells Fargo, Bank of America, J.P. Morgan Chase and GMAC Mortgage, of engaging in �a brazen scheme to defraud both our nation�s veterans and the United States treasury� of millions of dollars in connection with home loans guaranteed by the Department of Veterans Affairs.

�This is a massive fraud on the American taxpayers and American veterans,� James E. Butler Jr., one of the lawyers bringing the suit, said Tuesday. Tens of thousands of the VA loans have gone into default or resulted in foreclosures, resulting in �massive damages� to the U.S. government, the suit alleges. The faulty loans will cost taxpayers hundreds of millions of dollars, with the costs rising as more VA loans go into default, according to the suit. The two mortgage brokers who brought the suit said in an interview that they were instructed by the lenders not to show attorney�s fees on their estimates, but to add them to the title examination fee.

Under VA rules, lenders can charge veterans for recording fees and taxes, credit reports and other customary fees, but they are not allowed to charge attorney�s fees or settlement closing fees. �It was gut-wrenching to us, seeing the brazenness� of the lenders, broker Victor E. Bibby said. The case involves refinanced loans that are available to retired or active-duty veterans on homes they already own. The program is aimed at giving veterans the opportunity to lower their interest rates or shorten the terms of existing home mortgages.

cont'

http://www.washingtonpost.com/politics/suit-alleges-banks-and-mortgage-companies-cheated-veterans-and-us-taxpayers/2011/10/04/gIQATp4RLL_story.html

.

Printer Friendly | Permalink | | Top

hobbit709

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:35 AM
Response to Original message

1. They pretty much cheated everybody else too.

Printer Friendly | Permalink | | Top

Pacifist Patriot

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:41 AM
Response to Reply #1

3. Yeah, the headline could have just ended after the word "cheated."

Printer Friendly | Permalink | | Top

malaise

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:37 AM
Response to Original message

2. Get thee to the greatest page

When will these criminals be sent to prison?

Printer Friendly | Permalink | | Top

Segami

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:43 AM
Response to Reply #2

4. My exact same sentiments. If you or I committed the same crimes these criminal banksters have,

we would be responding to this thread from a jail cell.

Printer Friendly | Permalink | | Top

hobbit709

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 08:45 AM
Response to Reply #4

5. If you or I did half of what the banksters did

they'd put us in a hole so deep they'd have to send our food down in pressurized containers.

Printer Friendly | Permalink | | Top

chill_wind

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 01:51 PM
Response to Original message

6. K & R.

And more fraud allegations here today too (HUD IG Audit)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2059728

Did somebody say our lawmakers and justice officials are getting right on all of this--all these years of stuff?

Printer Friendly | Permalink | | Top

chill_wind

(1000+ posts) Send PM | Profile | Ignore

Wed Oct-05-11 05:06 PM
Response to Original message

7. Fraud?

Corruption? Investigate? Prosecute? What fraud? What crimes?

:sarcasm:

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Wed May 01st 2024, 10:07 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.