(Reuters) - A former Countrywide Financial employee alleges the lender fraudulently inflated appraisals used for government-insured home loans, according to a complaint unsealed on Friday in U.S. District Court in New York.
The whistleblower complaint appears to be related to a $1 billion settlement announced February 9 between Bank of America Corp (BAC.N), which bought Countrywide in June 2008, and the U.S. Attorney's Office in the Eastern District of New York.
Federal prosecutors said they had been investigating Bank of America and Countrywide since 2009 for knowingly making loans insured by the Federal Housing Administration to unqualified borrowers. They also said they probed allegations that the bank and Countrywide defrauded the FHA by originating loans based on inflated appraisals.
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