A lawsuit filed in 2006 and unsealed last week in an Atlanta federal court claims several large banks and mortgage companies defrauded veterans by charging illegal fees on Interest Rate Reduction Refinancing Loans offered by the Department of Veterans Affairs.

The lawsuit, brought under the Federal Claims Act by two mortgage brokers, alleges the defendants charged attorney’s fees or settlement closing fees, which are prohibited on VA loans. According to the lawsuit, the companies skirted the rules by hiding attorneys’ fees as title examination or title search fees.

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