Keller Rohrback L.L.P. Announces Investigation of JPMorgan Chase Bank and Other Lenders Regarding FHA Mortgage Insurance
May 04 2011 - 8:55PM
Business Wire
Attorney Advertising. Keller Rohrback L.L.P.
(www.krclassaction.com) is currently investigating JPMorgan Chase
Bank (NYSE:JPM), Washington Mutual (NYSE:WAMUQ), Bear Stearns
Residential Mortgage (NYSE:BSC), Bank of America (NYSE:BAC),
Countrywide, Citigroup (NYSE:C), and HSBC (NYSE:HBC), among others,
for alleged mortgage originator abuse of the Federal Housing
Administration (“FHA”) mortgage insurance offered through the
Direct Endorsement Lender program. In particular, the investigation
focuses on lax lender mortgage selection practices, deficient
appraisal practices, and inappropriate evaluation of borrower
income by lenders to make mortgages qualify for the government’s
FHA guarantee. These abusive practices allowed lenders to obtain
FHA mortgage insurance, thereby making the mortgages marketable in
the secondary mortgage market. When these borrowers defaulted, the
FHA was forced to pay millions of dollars in insurance claims
inappropriately. The U.S. Attorney for the Southern District of New
York filed suit on May 3, 2011, against Deutsche Bank AG and
MortgageIT, Inc. for similar practices.
Under the Dodd-Frank Wall Street Reform and Consumer Protection
Act, and the Federal False Claims Act, individuals or
whistleblowers with information regarding abuses impacting
securities regulated by the Securities and Exchange Commission or
commodities regulated by the Commodities Futures Trading
Commission, or fraud against the federal government, may be
entitled to significant rewards. These rewards can range from ten
to thirty percent of penalties, restitution, and damages derived
from successful enforcement actions brought by the government
relating to losses by investors or the government, or from private
qui tam law suits brought by whistleblowers.
If you have knowledge regarding any of the above-described
mortgage underwriting practices at JPMorgan Chase Bank, Washington
Mutual, Bear Stearns Residential Mortgage, Bank of America,
Countrywide, Citigroup, HSBC, or any other FHA-approved lender that
engaged in the conduct described above, you may qualify as a
whistleblower under federal law. Please contact paralegal Alicia
Novak or attorneys Gretchen Obrist, Laura Gerber, or Lynn Sarko
at 800-776-6044 or via email
at info@kellerrohrback.com for more information.
Keller Rohrback, with offices in Seattle, Phoenix, Santa Barbara
and New York, has obtained judgments and settlements on behalf of
clients in excess of seven billion dollars.
Attorney Advertising. Prior Results Do Not Guarantee A Similar
Outcome.
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