Eagle Home Mortgage, a subsidiary of Lennar, is the defendant in a new whistleblower lawsuit that alleges the lender routinely approved unqualified borrowers for mortgages, going so far as to falsify borrowers’ documents to increase the chances of approval. The suit also claims the company hid negative findings on audited loans from regulators.
This latest whistleblower lawsuit came just a month after it settled charges with the U.S. Department of Justice for lack of compliance with the Federal Housing Administration’s lending standards.
The lawsuit was filed in Florida by Wanda Burling, a former Senior Quality Control Manager for the company. She claims the company pressured her to keep quiet after she discovered its illicit lending practices. According to Burling, she was warned by an Eagle vice president not to contact authorities and then was fired soon after for unsubstantiated claims of poor performance. She had previously received strong performance reviews and a bonus for her work, indicating the company was satisfied with the work she was doing.
Burling had also uncovered a number of other violations at Eagle, including document falsification, omission of debts, adding income and cash reserves to inflate borrowers’ worth and other issues.
Steps to take to combat fraud
Fortunately, federal whistleblower protections are stronger than they’ve ever been, meaning the government has your back if you become aware of wrongdoing in your workplace and report the fraud through the proper channels.
If you are interested in exposing fraud or illegal activities within your business or organization, meet with an skilled whistleblower attorney at Kardell Law Group.