ATLANTA -- A whistleblower lawsuit launched in 2006 and unsealed Tuesday in federal court in Atlanta claims several large banks and mortgage companies defrauded military veterans and taxpayers out of hundreds of millions of dollars in a "brazen scheme" to hide illegal fees.
The lawsuit, brought under the Federal Claims Act by two mortgage brokers, claims the 13 banks and mortgage firms over-charged veterans who were applying for special home loans guaranteed by the Department of Veterans Affairs.
Federal rules allow the lenders to charge "reasonable and customary" fees and taxes, the lawsuit said, but they are barred from charging them attorneys' fees and settlement closing costs for the loans. The firms skirted the rules by charging attorneys' fees by hiding them as "title examination" or "title search" fees, it said.
- This Year's Best High-Interest Savings Accounts
- The Best States to Retire in 2022
- 7 Crucial Retirement Mistakes
- Need Cash? How to Access Your Home's Equity
- Don’t Borrow From The Bank - Borrow From Yourself
- Want Cash Out of Your Home? Here Are Your Best Options
- Home Mortgage Rates Drop Sharply This Week
- HARP Refinance Program is Over. Now What?
- Digital Mortgage Platform Helps Home Buyers Shop for Mortgages
- Spend $500, Get $200 Fast With This Top Card
- Best Travel Credit Cards Of August 2022
- Plan The Trip Of A Lifetime With This Travel Card Bonus
- The True Story Behind "The Blind Side"
- These Are All The Hidden Hacks Of Costco
- The Largest Military Planes In The World Are A Sight To Behold