Furthermore, the lenders are also accused of submitting a variety of false, fraudulent and fabricated documents to get the loans approved for the U.S. Treasury guarantee[2]. “Tens of thousands of the VA loans have gone into default or resulted in foreclosure,” according to the lawsuit, which also alleges that up to 90 percent of the 1.2 million loans refinanced through IRRRL in the past ten years may have been affected by the fraud.
This is a repost from Bryan Ellis.