Oct 24 The United States on Wednesday filed a
civil mortgage fraud lawsuit against Bank of America Corp
, accusing it of deliberately generating and then selling
thousands of toxic home loans that later defaulted to Fannie Mae
and Freddie Mac.
U.S. Attorney Preet Bharara in Manhattan said in a statement
that the sales had resulted in more than $1 billion of losses
and "countless" foreclosures. He said the case is the U.S.
Department of Justice's first civil fraud lawsuit over mortgage
loans sold to Fannie Mae or Freddie Mac.