U.S. sues Bank of America for $1B for mortgage fraud
CREATED Oct. 24, 2012
NEW YORK (AP/KTNV) -- 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.
For people in Las Vegas dealing with the results of these mortgage practices by lenders, they're glad to see something finally happening in the form of justice.
"No one seems to be able to hold Bank of America accountable for what they have done, and it just is a shame, because I have the income to afford my home," says Colleen Roybal.
This case is the sixth filed in the past 18 months by the federal government against major banks for alleged reckless home mortgage lending.