Six banks to pay $161M in vets mortgage settlement - KMSP-TV

FOX 5 I-Team investigates

Six banks to pay $161M in vets mortgage settlement

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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.

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