Foreclosures

Foreclosure firm admits to cheating and Over-billing Millions

A New York foreclosure law firm admitted to defrauding Fannie Mae and the Department of Veterans Affairs out of millions of dollars by using its affiliated companies to systematically overcharge the entities for foreclosure-related services as part of a settlement with the Department of Justice.

New York foreclosure firm admits to cheating Fannie Mae, VA out of millions

According to the complaint, the law firm appeared to only use its affiliated companies, a process server and a title search company, to serve process and perform title searches that were required to complete foreclosures on loans owned by Fannie Mae.

But instead of actually using its own companies, the law firm was accused of using third-party vendors to perform the majority of the work in question, applying “exponential” markups to the services performed, and billing Fannie Mae for the work, knowing that the government-sponsored enterprise would repay the firm for the services.

According to the complaint, the submission of those “fraudulently inflated expenses” caused Fannie Mae to pay out “millions of dollars” in falsely inflated foreclosure expenses.

This week, the firm admitted to the conduct as part of a $6.1 million settlement with the U.S. Attorney’s Office.

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Copyright – HousingWire
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Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

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