CitiMortgage is suing two Chicago bankers, Steve and John Calk, alleging that a mortgage bank that the brothers once operated had provided inaccurate residential loan underwriting documents, The St. Louis Post-Dispatch reported on Monday. O’Fallon, Mo.-based CitiMortgage is seeking more than $4.5 million in damages in its breach-of-contract lawsuit, which was filed in U.S. District Court in St. Louis Monday. Since 2004, CitiMortgage has purchased 4,790 loans from Chicago Bancorp, which was once one of the largest privately held retail mortgage banks in the country before it was dissolved in 2012, according to court documents. Eighteen loans Chicago Bancorp sold to CitiMortgage over the last decade contained inaccurate information or material misrepresentations that included misrepresenting a borrower’s income, employment or debt, according to the lawsuit. The new lawsuit isn’t the first time the parties have litigated over home loans. CitiMortgage sued Chicago Bancorp, the Calks, the Federal Savings Bank, and National Bancorp Holdings in February 2012 in federal court alleging that 11 loans contained inaccuracies, and CitiMortgage sought more than $2 million in damages in that case.
