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BRIEF-US sues Bank of America for alleged mortgage fraud tied to Fannie Mae, Freddie Mac
October 24, 2012 / 4:11 PM / 5 years ago

BRIEF-US sues Bank of America for alleged mortgage fraud tied to Fannie Mae, Freddie Mac

Oct 24 (Reuters) - Bank of America Corp : * Sued in mortgage fraud lawsuit by U.S. attorney in Manhattan -- press release * U.S. attorney preet bharara accuses Bank of America countrywide unit of

scheming to defraud fannie mae, freddie mac * U.S. attorney says bank implemented a loan origination process, the “hustle,”

that generated thousands of fraudulent, defective home loans that later

defaulted * U.S. attorney says loans were sold to fannie mae and freddie mac, causing

over $1 billion losses and thousands of foreclosures * U.S. attorney says civil fraud case is first by U.S. Department of Justice

over mortgage loans sold to fannie mae or freddie mac

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