Kevin Stitt's Company Targeted In Federal Lawsuit
OKLAHOMA CITY - Republican Gubernatorial candidate, Kevin Stitt's company Gateway Mortgage is the target of a federal lawsuit.
Democratic candidate Drew Edmondson's campaign provided the document's Tuesday.
Stitt says it's his business practices that will help him lead Oklahoma, but Edmondson disagrees.
Edmondson says this lawsuit filed in New York could be another red flag for voters.
"Now the allegations of what happened in 2008 and 2009 is Gateway selling the mortgages to other companies up the chain. Lehman Brothers ended up handing the bag at the end of the chain," said Edmondson.
This lawsuit was filed back in 2016 by Lehman Brothers, and a hearing took place Tuesday.
It names Gateway Mortgage, and many other lenders, as defendants in the case.
Edmondson's campaign says Stitt's company, among the others listed, sold defective mortgages to consumers at the height of the mortgage crisis. Then re-sold the mortgages to Lehman Brothers, causing them to fail.
Stitt's campaign says Edmondson's actions are a desperate attempt to keep pace with the polls.
"Just typical politicians. My opponent is down again in the polls, and what does he try and do, attack out company and mislead Oklahomans," said Stitt.
Stitt's campaign says his company is one of hundreds named in the suit, and the that Gateway only had a few small loans in the case.
"I am so proud of out 1,200 employees. We do 3,000 home loans every single month. It's just typical that the carer politicians are trying to attack a good Oklahoma company," said Stitt.
Edmondson says this isn't the first time Stitt's business has been questioned.
"When he says he is going to run Oklahoma like a business, then it's incumbent upon us to look at how he ran his business. Now how he runs it today, but how he ran it historically," said Edmondson.
An additional hearing has been scheduled for October 29th.