Wells Fargo, Ocwen Hit With FCA Suit Over Freddie Claims

Law360, Washington (March 31, 2015, 7:19 PM EDT) -- Two homeowners have told a New York federal court that Wells Fargo & Co. and Ocwen Financial Corp. illegally collected payments on mortgages they fraudulently declared in default, according to a False Claims Act suit made available Tuesday.

Originally filed under seal in September 2014, plaintiffs Mr. and Mrs. Schiano claim the companies diverted a payoff they had made for refinancing their home and told the loan’s owner, government sponsored entity Freddie Mac, that the pair had defaulted.

As a result, the suit claims, Freddie Mae only received 80 percent of the payoff of the first mortgage from its insurer, Genworth...

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