The opinions expressed by columnists are their own and do not represent our advertisers
Thursday, October 25, 2012
Bank of America Hit With $1B Lawsuit Over Alleged Mortgage Fraud
The federal government filed a civil mortgage fraud lawsuit againstBank of AmericaCorp., accusing it of deliberately generating and selling thousands of toxic home loans that later defaulted toFannie MaeandFreddie Mac.
U.S. AttorneyPreet Bhararasaid in a statement that the sales had resulted in more than $1 billion of losses and "countless" foreclosures.
Bharara said the case is the Department of Justice's first civil fraud lawsuit over mortgage loans sold to Fannie Mae or Freddie Mac.