US sues BofA for $1B for mortgage fraud
U.S. Attorney Preet Bharara said Wednesday his office will sue the big bank for crisis-era procedures that allegedly allowed it to process thousands of fraudulent loans.
Fannie and Freddie were essentially destroyed by the financial crises, and the subsequent freak out that resulted. As it turns out, the dysphoria began much deeper
(AP) - The top federal prosecutor in Manhattan says he’s suing Bank of America for $1 billion for mortgage fraud against Fannie Mae and Freddie Mac.
U.S. Attorney Preet Bharara says Countrywide, which was later bought by Bank of America, had procedures designed to process loans at high speed and generated thousands of fraudulent loans.
Mr. Bharara says it’s the first civil fraud suit brought by the Justice Department concerning loans that were later sold to Fannie and Freddie.
The suit against Bank of America is the first brought by the Justice Department concerning loans that were later sold to Fannie and Freddie.