Feds sue BofA for $1 billion over loans sold to Fannie, FreddieQuicklink submitted by Sheila Samples Permalink
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|The federal government has filed another mortgage-fraud lawsuit against Bank of America, contending that defective loans generated by the bank's Countrywide Financial Corp. subsidiary caused mortgage finance giants Fannie Mae and Freddie Mac to lose more than $1 billion. BofA used the Hustle system after acquiring Countrywide in 2008, according to the lawsuit, described as the Justice Department's first civil fraud suit over loans sold to Fannie and Freddie. The companies were seized by the government during the financial crisis in a bailout that has cost taxpayers $137 billion.|
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