The federal government has been cracking down lately against mortgage fraud in the housing finance sector, slapping massive companies with enormous suits. A recently-filed B of A mortgage fraud lawsuit seeks $1 billion in problems for toxic loans sold to Freddie Mac and Fannie Mae.
Punishing B of A for purchase
Countrywide is a mortgage lender that B of A acquired when it went under during the recession. It is one of the mortgage businesses which were known for making a ton of monetary blunders. Bank of America has been dealing with a ton of lawsuits due to the things the company did.
According to the New York Times, another lawsuit was just filed by the U.S. Lawyer of Manhattan claiming $1 billion in problems. Evidently, countrywide sold numerous loans to Freddie Mac and Fannie Mae fraudulently.
Program the biggest issue
A "High Speed Swim Lane" was used at Countrywide before it was owned by Bank of America that put mortgages on a fast track to federal backing without actually vetting the mortgage loans properly, according to the suit.
The program is alleged to have paid workers bonuses if they were willing to overlook quality of the mortgage and skip verification of income. They were even encouraged to falsify information if it meant giving out mortgages. According to USA Today, the program is suspected of occurring from 2007 to 2009, well after B of A took over the company.
Fannie and Freddie's job does not entail vetting the loans, which is why the bank is responsible for it. There was one loan made to someone who only made $2,666 per month, though the application said the person was making $15,500 a month. Within seven months, the individual defaulted. Another person defaulted within a year after failing to disclose $81,000 in debt.
Deny, deny, deny
Since Fannie Mae and Freddie Mac have essentially been placed under government conservatorship, the Justice Department is, by virtue of the B of A mortgage fraud lawsuit, planning to reclaim $1 billion in losses incurred by the "hustle" program. The Justice Department also contends that the mortgages sold under the "hustle" program should have been repurchased, but B of A failed to do so.
Many people who bought homes with the loans have been foreclosed on, though Bank of America denies any wrongdoing. A 2008 study found that 57 percent of homeowners were in the program and defaulted, according to USA Today.
Punishing B of A for purchase
Countrywide is a mortgage lender that B of A acquired when it went under during the recession. It is one of the mortgage businesses which were known for making a ton of monetary blunders. Bank of America has been dealing with a ton of lawsuits due to the things the company did.
According to the New York Times, another lawsuit was just filed by the U.S. Lawyer of Manhattan claiming $1 billion in problems. Evidently, countrywide sold numerous loans to Freddie Mac and Fannie Mae fraudulently.
Program the biggest issue
A "High Speed Swim Lane" was used at Countrywide before it was owned by Bank of America that put mortgages on a fast track to federal backing without actually vetting the mortgage loans properly, according to the suit.
The program is alleged to have paid workers bonuses if they were willing to overlook quality of the mortgage and skip verification of income. They were even encouraged to falsify information if it meant giving out mortgages. According to USA Today, the program is suspected of occurring from 2007 to 2009, well after B of A took over the company.
Fannie and Freddie's job does not entail vetting the loans, which is why the bank is responsible for it. There was one loan made to someone who only made $2,666 per month, though the application said the person was making $15,500 a month. Within seven months, the individual defaulted. Another person defaulted within a year after failing to disclose $81,000 in debt.
Deny, deny, deny
Since Fannie Mae and Freddie Mac have essentially been placed under government conservatorship, the Justice Department is, by virtue of the B of A mortgage fraud lawsuit, planning to reclaim $1 billion in losses incurred by the "hustle" program. The Justice Department also contends that the mortgages sold under the "hustle" program should have been repurchased, but B of A failed to do so.
Many people who bought homes with the loans have been foreclosed on, though Bank of America denies any wrongdoing. A 2008 study found that 57 percent of homeowners were in the program and defaulted, according to USA Today.
About the Author:
How often have you needed addiitional information on where to find a instant cash loan and turned to an internet search on instant approval payday loans?" Your search is over, all the facts you need is at MatchFinacial.com!
ليست هناك تعليقات:
إرسال تعليق