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Daily Dose: More Trouble for Banking Industry

The Washington Post reports that Wells Fargo, Bank of America, JP Morgan Chase and GMAC Mortgage defrauded veterans and taxpayers out of hundreds of millions of dollars through illegal fees in veterans’ home refinancing loans. A suit was brought by a two whistleblowers in an Atlanta federal court. The Washington Post Reports:

The suit accuses the companies, including Wells Fargo, Bank of America, J.P. Morgan Chase and GMAC Mortgage, of engaging in “a brazen scheme to defraud both our nation’s veterans and the United States treasury” of millions of dollars in connection with home loans guaranteed by the Department of Veterans Affairs.

The Post reports that during the past decade over 1.2 million loans have been made to veterans and their families. The Post also reports that 90% of the loans may have been affected by the fraud. The Post reports, “The banks collected hundreds of millions of dollars in hidden fees from veterans, and they obtained hundreds of millions of dollars in loan guarantees they otherwise wouldn’t have received,” said Mary Louise Cohen, a Washington attorney who is also representing the whistleblowers.

Does your agency have a whistleblowing policy?

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“Daily Dose of the Washington Post” is a blog series created by GovLoop in partnership with The Washington Post. If you see great a story in the Post and want to ask a question around it, please send it to thedoctor@govloop.com.

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