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CIT Bank Loses Bid to Dismiss Mortgage Modification Fraud Claim

Jan. 14, 2022, 4:29 PM

CIT Bank NA must continue to face a whistleblower’s False Claims Act claims that it committed fraud under the Department of the Treasury’s Home Affordable Modification Program during the 2008 housing crisis, a Texas district court said.

CIT Bank showed that Andrew Mitchell’s allegations are substantially the same as those in publicly disclosed documents. But Mitchell satisfied the original source exception to the FCA’s public disclosure bar, Judge Amos L. Mazzant III of the U.S. District Court for the Eastern District of Texas said in a Thursday opinion.

CIT’s second motion for summary judgment, filed June 24, is still pending. ...

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