Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

Former Lehman Unit Fined for Fraud

Aurora Loan Services LLC will pay a $41 million fine for what the U.S. Attorney says were fraudulent loans from 2004 to 2008 under an agreement with the government announced Thursday.

The mortgage company that was headquartered in Littleton, Colorado, now has minimal assets and no employees, according to a news release from the U.S. Attorney District of Colorado’s office.

During the four-year period in question, the company, a subsidiary of Lehman Brothers Holdings Inc., sold loans that it said had gone through a “pre-funding fraud detection” review when, in fact, they hadn’t, according to the release.

In 2006, some of those loans began defaulting at higher rates, causing investors who had purchased mortgage-backed securities containing those loans to lose money.

Thursday’s agreement was a settlement under the Financial Institutions Reform, Recovery and Enforcement Act. The $41 million settlement was not an admission of liability by Aurora Loan Services, the news release said.

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION