GMAC Wants Out Of FCA Suit Over Hidden Home-Loan Fees

Law360, New York (November 22, 2011, 3:36 PM EST) -- GMAC Mortgage LLC sought its dismissal Monday from a whistleblower suit in Georgia accusing 14 banks and mortgage companies of defrauding U.S. military veterans and taxpayers by hiding illegal fees in government-backed loans, arguing the defendants had been erroneously lumped together.

Mortgage brokers Victor E. Bibby and Brian J. Donnelly brought the False Claims Act suit in federal court in March 2006. They accuse GMAC, Bank of America Corp., and 12 other financial firms of engaging in a “brazen scheme” to charge veterans who refinanced their...
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