The financial crisis of 2008 started with financial institutions that underwrote mortgage loans to borrowers who did not have the financial ability to purchase the homes for which they were approved. The federal government did not rack up the losses it might have because of whistleblowers at some of the country’s largest banks.

Federal law protects whistleblowers from the time they come forward to assist the government. They are protected from retaliation by employers who may intimidate or fire them for blowing the whistle on fraud. When you are an employee at a financial institution and suspect your employer is defrauding the government, a Greenville mortgage fraud whistleblower lawyer is the person to call. Our experienced attorneys will handle your lawsuit and protect your rights.

The Government and Mortgage Fraud

Among the government’s largest fraud recoveries are those relating to mortgages following the financial crises of 2008. The U.S. Justice Department accused Countrywide Bank, a subsidiary of Bank of America, of selling shaky mortgages to federally backed mortgage companies Fannie Mae and Freddie Mac, triggering the housing crisis and subsequent recession that year. Bank of America was ordered to pay the government back $863.6 million for the debacle.

Other financial institutions the government has sanctioned for mortgage fraud include Ally Financial, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Standard & Poor’s, and Wells Fargo.

The federal government is particularly aggressive since the 2008 crash in disciplining financial institutions that originate or underwrite home mortgage loans to unqualified borrowers and defraud investors through Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). RMBS and CDOs were comprised of shaky residential loans. This practice violates the Dodd-Frank Act. Corporate employees working for financial institutions that grant mortgages should contact a fraud whistleblower attorney in Greenville when they suspect their employer is bilking the government.

The False Claims Act

When the fraud perpetrated causes the federal government direct financial losses, the False Claims Act has been violated. Some examples of these violations include:

  • Failing to follow the Department of Urban Development (HUD) requirements for underwriting home loans that are guaranteed or insured through HUD
  • Fraudulently approving loans for Federal Housing Administration (FHA) insurance
  • Falsely claiming borrowers earn more money or have a better employment history than they do
  • Falsely claiming the residential property is worth more than it is

An employee in Greenville who suspects the mortgage lender they work for is violating the False Claims Act should contact a fraud whistleblower lawyer.

Qui Tam Lawsuits

According to the False Claims Act, mortgage fraud whistleblowers, known as relators, file qui tam lawsuits with the help of a practiced Greenville lawyer in federal court on behalf of the government. A copy of the lawsuit is sent to the government, after which the government can choose to pursue or decline it. Relators generally share between 15 and 30 percent of the damages award with the government.

A Greenville Mortgage Fraud Whistleblower Attorney Can Guide a Lawsuit

The federal government tenaciously pursues financial institutions suspected of mortgage fraud because it has seen the horrific effects on the housing market meltdown in 2008.

The government relies on corporate insiders to act as whistleblowers who gather evidence through their jobs, work with an attorney, and file qui tam lawsuits on the government’s behalf. An attorney can also work with you when you prefer to remain anonymous and tip off the government about untoward fraudulent acts. When you suspect your employer is engaging in activity that amounts to stealing from the government, a Greenville mortgage fraud whistleblower lawyer can guide you. Call us to learn more.

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