US sues Bank of America for $1 billion for mortgage fraud

US sues Bank of America for $1 billion for mortgage fraud

Credit: AP

In this June 16, 2009 photo, a new home sign points to a home in Happy Valley, Ore. The government said Monday, July 27, new U.S. home sales rose by the largest amount in nearly nine years last month, in another sign the housing market is finally bouncing back from the worst downturn in decades.(AP Photo/Rick Bowmer)

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by Associated Press

KREM.com

Posted on October 24, 2012 at 10:41 AM

NEW YORK  -- The top federal prosecutor in Manhattan says he's suing Bank of America for $1 billion for mortgage fraud against Fannie Mae and Freddie Mac.

U.S. Attorney Preet Bharara says Countrywide, which was later bought by Bank of America, had procedures designed to process loans at high speed and generated thousands of fraudulent loans.

Bharara says it's the first civil fraud suit brought by the Justice Department concerning loans that were later sold to Fannie and Freddie.
 

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