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Current Events and Musings => Business News => Topic started by: Sister on December 06, 2011, 07:55:11 AM

Title: Former Whistleblower: Mortgage Fraud 'Systemic'
Post by: Sister on December 06, 2011, 07:55:11 AM
Former Countrywide Whistleblower: Mortgage Fraud 'Systemic' Former Countrywide Whistleblower: Mortgage Fraud 'Systemic'
With mortgage lenders now facing allegations of misconduct on several fronts, a former top ranking employee at a major home lender has come forward saying fraud at her firm wasn't the exception, but the norm.

Eileen Foster, a former executive vice president in charge of fraud investigations at mortgage lender Countrywide Financial, told CBS 60 Minutes reporter Steve Kroft that mortgage fraud was a common occurrence at the firm. Foster goes on to say that she faced illegal retaliation for filing reports investigating the fraud, alleging Countrywide fired her when she refused to lie to federal regulators on Countrywide's behalf.

Countrywide Financial, acquired by Bank of America in 2008, was a central figure in the housing collapse and subsequent foreclosure crisis. Once America's largest mortgage lender, the company has agreed to a litany of settlements since 2008, including a $600 million class-action settlement, an $108 million settlement with the Federal Trade Commission and the ousting of former CEO Angelo Mozilo, who paid $67.5 million in penalties to the Securities and Exchange Commission, the Wall Street Journal reports.