Wed October 24, 2012
U.S. Sues BofA For $1 Billion For Mortgage Fraud
Federal prosecutors in Manhattan sued Bank of America for $1 billion on Wednesday, alleging the bank defrauded government-sponsored mortgage giants Fannie Mae and Freddie Mac.
The lawsuit is the latest legal mire for the Charlotte-based bank, which has already agreed to pay billions of dollars to resolve other lawsuits.
U.S. Attorney Preet Bharara said in the complaint that Countrywide, which was purchased by the bank, generated thousands of fraudulent home loans through a process known as the “Hustle,” which involved processing home loans at high speed and without quality checkpoints. And the lawsuit contends that the “Hustle,” or HSSL (which stood for “High Speed Swim Lane”), continued after Bank of America completed the Countrywide acquisition. Continue to read at the Charlotte Observer.