BANK OF AMERICA WHISTLEBLOWER EARNS $14 MILLION REWARD

Kyle W. Lagow, who blew the whistle on Countrywide Financial will collect $14 million, part of the record One Billion dollar settlement between the Department of Justice and Bank of America. Lagow worked at LandSafe Inc. an appraisal company owned by Countrywide Financial and acquired by Bank of America. The unsealed complaint revealed widespread disregard for laws that regulate Federal Housing Administration (FHA) underwriting and home appraisals. The whistleblower alleged that Countrywide inflated the appraisal value of homes. boosting the size of the loans to homebuyers. The law requires appraisers act neutrally and without regard to the lender’s interest. In addition Lagow learned that the builders had hired one person to handle all the appraisals in Houston. This is an impossible task for one person and yet he turned in more than 400 appraisals at nearly $450 per report.