This is a story I’ve been trying to tell for six years. The “Big Banks” did a fantastic job of telling their side of the story after the mortgage meltdown, convincing a weary public that those pesky brokers were the root of the problem. The trouble is, while certainly many independent originators abused the system, they did so with product created by the investment bankers, and sold through banks and wholesale lenders, including Chase Bank. This article came out today in Mortgage Professional America, an industry publication:
The whistleblower who brought JPMorgan Chase to its knees is getting a $63.9 million payday.
Former JPMorgan assistant vice president Keith Edwards sued the bank in 2013 under the False Claims Act, which allows individuals to sue businesses for defrauding taxpayers. The Justice Department later joined the suit as a plaintiff, according to a Reuters report.
Prosecutors maintained that JPMorgan defrauded the government into insuring shoddy mortgages. Federal Housing Administration and the Veterans Administration had to cover millions of dollars in losses after the loans went bad, Reuters reported. JPMorgan ultimately agreed to pay $614 million to resolve the claims.
That settlement agreement made Edwards a wealthy man. Under provisions of the False Claims Act, whistleblowers such as Edwards are entitled to a portion of settlement proceeds.
The Justice Department has paid out about $1.98 billion in settlement proceeds to whistleblowers since 2009, Reuters reported.
This was just too good not to pass on.
My name is Casey Fleming. I originate mortgage loans in California and am based in Silicon Valley.
(408) 348-3442 / firstname.lastname@example.org / http://www.loanguide.com
NMLS 344375 / BRE 00889527