NEW YORK – Gateway Mortgage, the company founded by Oklahoma gubernatorial candidate Kevin Stitt, is on of the defendants in a federal lawsuit that began today in the Southern District of New York.
The hearing was part of a civil suit filed in bankruptcy court against Gateway Mortgage Group and others in December 2016 by Lehman Brothers Holdings.
The lawsuit alleges Stitt’s company was among those that sold defective mortgages to consumers at the height of the mortgage crisis.
According to the lawsuit, Gateway resold the defective mortgages to Lehman Brothers, ultimately causing Lehman Brothers to fail and the collapse of the mortgage industry.
Kevin Stitt’s campaign sent us a statement regarding the lawsuit: “After Lehman Brothers went bankrupt they sued hundreds of businesses around the country to the tune of $4 billion. Their claim involving Gateway involves only 5 small loans which equals to .01 percent of this case. Gateway Mortgage is a success story with more than 1,200 employees, many in Oklahoma, and a nationwide-award winning reputation with a delinquency rate that is 50 percent below the national average.”
You can read the full suit here.