CitiMortgage files $4.5M suit against Chicago bankers

O’Fallon-based CitiMortgage is suing Steve and John Calk, two Chicago bankers, because a mortgage bank the brothers operated presided over loans that had “defects,” they allege.

According to the St. Louis Business Journal, CitiMortgage  purchased loans from Chicago Bancorp dating back to 2004. The lawsuit seeks $4.5 million in damages.

The suit alleges 18 of the loans contained inaccurate information, including misrepresentations of a borrower’s income, employment or debt.

CitiMortgage’s lawsuit states that its contract with Chicago Bancorp required Chicago Bancorp to repurchase loans that were defective. However, Chicago Bancorp dissolved in 2012, and its assets were transferred to The Federal Savings Bank, according to the business journal.

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