{"id":5369,"date":"2012-10-24T00:00:00","date_gmt":"2012-10-24T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/10\/bank_of_america_corp_sued_for"},"modified":"2022-04-28T13:44:46","modified_gmt":"2022-04-28T18:44:46","slug":"bank-of-america-corp-sued-for","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-corp-sued-for\/","title":{"rendered":"Bank of America Corp. Sued for Over $1B By US Government For Mortgage Fraud Against Freddie Mac and Fannie Mae"},"content":{"rendered":"

\t\t\t\tThe United States is suing Bank of America Corporation (BAC) for more than $1 billion over alleged mortgage fraud <\/a>involving the sale of defective loans to Freddie Mac and Fannie Mae. The federal government contends that Countrywide, and then later Bank of America, following its acquisition of the former, executed the \u201cHustle,\u201d a loan origination process intended to swiftly process loans without the use of quality checkpoints.<\/p>\n

This allegedly resulted in thousands of defective and fraudulent residential mortgage loans, which were sold to Fannie Mae and Freddie Mac, that later defaulted, leading to innumerable foreclosures and over $1 billion in losses.<\/p>\n

The US claims that between 2007 and 2009, mortgage company Countrywide Financial Corp. got rid of checks and quality control on loans, including opting not to use underwriters, giving unqualified personnel incentives to cut corners, and hiding defects, and then proceeded to falsely keep claiming that these loans were qualified to be insured by Freddie Mac and Fannie Mae. The result, says U.S. Attorney for the Southern District of New York Preet Bharara, was that taxpayers were left to foot the bill from these \u201cdisastrously bad loans.\u201d<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The United States is suing Bank of America Corporation (BAC) for more than $1 billion over alleged mortgage fraud involving the sale of defective loans to Freddie Mac and Fannie Mae. The federal government contends that Countrywide, and then later Bank of America, following its acquisition of the former, executed the \u201cHustle,\u201d a loan origination […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3752,4001],"tags":[2516,2517],"class_list":["post-5369","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-mortgage-fraud","tag-fannie-mae","tag-freddie-mac"],"yoast_head":"\nBank of America Corp. Sued for Over $1B By US Government For Mortgage Fraud Against Freddie Mac and Fannie Mae — Investor Lawyers Blog — October 24, 2012<\/title>\n<meta name=\"description\" content=\"The United States is suing Bank of America Corporation for more than $1 billion over alleged mortgage fraud involving the sale of defective loans.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-corp-sued-for\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Bank of America Corp. 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