Economy

Lawsuit Alleges Nation’s Biggest Banks Defrauded Veterans

According to a whistleblower lawsuit, some of the nation’s biggest banks, including Wells Fargo, Bank of America, and J.P. Morgan Chase, “defrauded veterans and taxpayers out of hundreds of millions of dollars by disguising illegal fees in veterans’ home refinancing loans.” Under VA rules, mortgage lenders are not allowed to charge attorney’s fees, so the banks allegedly instructed mortgage brokers “not to show attorney’s fees on their estimates, but to add them to the title examination fee.” The plaintiffs in the case claim that 90 percent of refinanced loans to veterans included the illegal fee.