Lawsuit Alleges Mortgage Lenders Defrauded Veterans

The Washington Post recently published an article about how claims of fraud revolve around mortgage lenders hiding “illegal fees in veterans’ home refinancing loans,” and will likely end up totaling hundreds of millions of dollars in damages. The list of defendants to this suit include:

  • GMAC Mortgage;
  • J.P. Morgan Chase;
  • Bank of America; and
  • Wells Fargo.

According to the suit, those 4 companies have apparently been cheating veterans for years, which has amounted to a “massive fraud” not only on veterans and the United States Treasury, but on taxpayers as well, who will ultimately have to pay for these crimes.

The home loans in question were guaranteed by the Department of Veterans Affairs (VA). Specifically, they were refinancing loans offered to veterans on homes they already owned.  Potentially 90% of about 1.2 million refinancing loans are being affected. 

Current count has “tens of thousands” of those VA-backed loans in default or foreclosure. Although there are VA programs designed to help veterans with the current housing crisis, it may not apply in this instance.

This suit was brought by 2 mortgage brokers who claim they were told to hide attorney’s fees for the loans in their examination fee for the title. This is in direction violation of the VA’s rules as attorney’s fees, along with settlement fees, are not allowed to be charged at all.

If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, a South Florida disability attorney from Veterans Help Group is ready to help. To learn if you are entitled to certain programs and benefits contact our veterans disability rights firm today 1-855-855-8992.