Six banks to pay $161M in vets mortgage settlement - New York News

FOX 5 I-Team investigates

Six banks to pay $161M in vets mortgage settlement

Posted: Updated:
ATLANTA -

Six lenders, including Atlanta-based Sun Trust Mortgage, have agreed to pay $161 million to settle a massive whistleblower lawsuit that alleged they overcharged military veterans on their home refinancing loans.

The whistleblower lawsuit was filed by two local loan officers on behalf of the taxpayers. Most of the money recovered will be returned to the government.

The I-Team was first to tell you how Atlanta loan officers Victor Bibby and Brian Donnelly filed a federal whistleblower lawsuit against 13 banks and mortgage companies accusing them of taking part in a "brazen scheme to defraud both our nation's veterans and the United States Treasury."    

After our initial stories, their whistleblower lawsuit was unsealed and JP Morgan Chase agreed to a $45 million dollar settlement. Now, you can add $161 million to that total.

Sun Trust Mortgage paid $10 million. They had no comment.

Two defendants remain: Wells Fargo and Mortgage Investors Corporation.

  • I-Team Story ArchiveMore>>

  • Patient: Hospice company failed me too

    Patient: Hospice company failed me too

    Wednesday, August 27 2014 10:37 PM EDT2014-08-28 02:37:56 GMT
    The state is now looking into a defunct hospice provider originally investigated by the Fox 5 I-Team.
    The state is now looking into a defunct hospice provider originally investigated by the Fox 5 I-Team.
  • Hidden fees in checking accounts: Who's transparent, who's not

    Hidden fees in checking accounts: Who's transparent, who's not

    Wednesday, August 27 2014 8:10 AM EDT2014-08-27 12:10:06 GMT
    We already know about some of the fees our banks charge -- the monthly fee, the overdraft charge, out-of-network and minimum balance fees. That's standard stuff. But did you know that the average checking account has 30 fees attached?
    We already know about some of the fees our banks charge -- the monthly fee, the overdraft charge, out-of-network and minimum balance fees. That's standard stuff. But did you know that the average checking account has 30 fees attached?
  • Judge mulling sanctions related to ethics trial

    Judge mulling sanctions related to ethics trial

    Monday, August 25 2014 6:29 PM EDT2014-08-25 22:29:27 GMT
    A judge is deciding whether to sanction the Georgia attorney general's office, the state ethics commission and the commission's director for not releasing certain documents in a whistleblower trial.
    A judge is deciding whether to sanction the Georgia attorney general's office, the state ethics commission and the commission's director for not releasing certain documents in a whistleblower trial.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices