Former Employee Accuses Mortgage Lender of Lying About Borrowers

Change Company, a mortgage lender set up to focus on poor and minority borrowers, has been accused by a former employee in a lawsuit of lying to the government and its bondholders about who is actually receiving loans.

The lawsuit filed by Adam Levine, a former chief of staff who was fired from the company, alleges that the company misrepresented the race, ethnicity, and income level of its borrowers in reports to the US government. He is suing for unlawful termination.

Change Company hasn’t yet filed a response with the court, but Alan Wayne Lindeke, its general counsel, pointed ...