Advanced Search

Volume 2014 - Number 6

February 13, 2014

‘Robo-Signing’ Whistleblower Returns to Haunt Industry, Unseals New False Claim Allegations Against Old Foes

The whistleblower who gained fame and a lot of money from suing major banks for “robo-signing” and other improper mortgage servicing practices has filed an amended lawsuit accusing 22 companies of defrauding the Department of Housing and Urban Development of billions of dollars in false FHA claims. Lynn Szymoniak, whose 2011 interview on “60 Minutes” blew the lid off improper servicing practices at some major banks, filed a qui tam, or whistleblower, lawsuit in the U.S. District Court of South Carolina last week alleging violations of the federal False Claims Act and state false claims statutes. Defendants include CitiMortgage, Wells Fargo Bank, Bank of America, Deutsche Bank, HSBC USA, JPMorgan Chase and U.S. Bank, as well as servicers, trustees, custodians and title companies. The lawsuit seeks...

Subscribers to Inside Mortgage Finance have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?


A weekly "must read" for industry executives. Thoroughly covers regulatory, political, legislative and market issues in the residential mortgage business.



You can purchase this article for $55.00 without subscribing and always have access to it on

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744


In 2016, what have you been paying your retail residential loan officers, on average, as a commission?

25 to 50 basis points per loan
51 to 75 bps
76 to 100 bps
101 to 150 bps
More than 150 bps
We’re a call center lender and don’t disclose that data point.

vote to see results
Housing Pulse