ComFed Mortgage Co., Inc. (the "Mortgage Company") (hereinafter

collectively referred to as "ComFed") bring this action to recover

damages for losses they have sustained as a result of the wrongful

conduct of ComFed lending officers in connection with the

origination of mortgage loans to residential and commercial

borrowers in the Northeast region. Specifically, these lending

officers caused ComFed to make numerous unsafe and unsound loans

by falsifying data on loan applications and in loan-related

documents, utilizing appraisers known to give inflated appraisals

of properties, and permitting second mortgages in favor of the

sellers to be secretly placed on numerous properties that were the

subject of first mortgage loans by ComFed. By engaging in such

wrongful conduct, these lending officers breached their fiduciary

duties of care and loyalty to ComFed, violated federal banking

statutes and regulations governing the thrift industry, and

defrauded ComFed. As a result of their wrongful conduct, ComFed

has suffered extensive damages.