Skip to main content

Lawsuit Charges Colorado Lender Fired Whistleblowing Employees

Phil Hall
Jun 09, 2017
Swiss-based bank UBS’ announcement that the Department of Justice (DOJ) was preparing a civil action related to 40 residential mortgage-backed securities (RMBS) deals from 2006 through 2007 came to fruition sooner than later

Four ex-employees of Aurora, Colo.-based American Financial Corp. have filed a lawsuit claiming the company fired them after they sought to expose alleged evidence of mortgage fraud.
 
According to a Denver Post report, the lawsuit stated that American Financial allegedly submitted faked documents and consumer loan applications to least five financial institutions—
JP Morgan Chase, Wells Fargo, US Bank, Flagstar Bank and PennyMac—and other institutions including the Colorado Housing and Finance Authority. The employees—three mortgage consultants and a pre-qualification specialist—said they were suspended and later fired for sharing their concerns with company management.
 
The company issued a statement refuting the lawsuit’s claims. “We plan to file a motion to dismiss some of the claims in the lawsuit,” the company statement said. “We are in good standing with mortgage licensing authorities here in Colorado and across the United States.”

 
Published
Jun 09, 2017
Feds Reviewing Appraisal Standards, Qualifications

Appraisal Subcommittee said requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.

Regulation and Compliance
Oct 20, 2021
​​​​​​​FHFA OK's Desktop Appraisals, Expands Refi Criteria

The Federal Housing Finance Agency (FHFA) said Monday it will take two steps to help make home ownership more affordable and sustainable for mortgage borrowers, especially for those in underserved communities. 

Regulation and Compliance
Oct 19, 2021
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Community
Oct 08, 2021