A False Claims Act case alleging that multiple banks concealed unlawful fees in loans to veterans was unsealed Monday.  Under a Department of Veteran’s Affairs (“VA”) loan guarantee program, veterans are eligible for refinanced home loans which allow them to lower their interest rates or shorten the terms of their existing mortgages.  VA rules limit the fees banks can charge on the loans.  In spite of these limitations, however, Bank of America, Wells Fargo, J.P. Morgan Chase, GMAC Mortgage, and others allegedly charged unlawful hidden fees ranging from $300 to $1,000 per loan, re-labeling impermissible fees as other permitted types of fees.

The whistleblower’s attorneys estimate that approximately 90 percent of the 1.2 million VA-backed refinanced home loans were affected by the banks’ actions.