We can help you report fraud at banks involving the housing and mortgage industry. The U.S. Government has two laws, the False Claims Act and FIRREA, which provide for compensation to whistleblowers if the information results in the recovery of money by the United States. Many banks have already settled with the Department of Justice regarding allegations of wrongdoing between 2006 and 2008. However, the U.S. Government would still be interested in misconduct at these and other financial institutions if it has not been previously disclosed to them.
Misrepresentations to the U.S. Government concerning the quality of loans being subsidized and insured by U.S. housing programs, including fraudulently inflated appraisals, ineligible applicants, and the failure to disclose ineligible loans detected during audits.
Misrepresentations and the failure to disclose key facts about the quality of mortgage loans sold to various government agencies, including Fannie Mae, Freddie Mac and the Federal Housing Administration, in the form of Residentia Mortgage-Backed Securities (RMBS) and collateralize debt obligations (CDOs).
False Claims Act
The FCA was used to recover more than $3 billion in taxpayer dollars in 2014 from financial institutions submitting false claims for payment to the U.S. Government. The FCA will pay between 15 and 30 percent of the government’s recovery based on information provided by eligible individuals.
The U.S. Government used this law passed by Congress following the Savings & Loan crisis in the 1980s to recover more than $5 billion from mortgage fraud before and during the Great Recession. FIRREA will pay up to $1.6 million to whistleblowers for information.