BofA Sued by U.S. for $1 Billion Over Alleged Mortgage Fraud

http://www.bloomberg.com/news/2012-10-24/bofa-sued-by-u-s-for-1-billion-over-alleged-mortgage-fraud.html

By Andrew Dunn - Oct 24, 2012

Bank of America Corp. (BAC) was sued by the U.S. attorney in Manhattan for allegedly engaging in a scheme to defraud Fannie Mae and Freddie Mac.

The complaint alleges that Countrywide Financial Corp., which was later bought by Bank of America, implemented a loan- origination process that generated thousands of fraudulent or defective loans that were sold to Fannie Mae and Freddie Mac, according to a statement today from the Manhattan U.S. Attorney’s Office.