Bank of America is sued by the U.S. for $1 billion

[Kimster]

Bank of America is sued by the U.S. for $1 billion for allegedly selling bad loans to Fannie Mae and Freddie Mac.

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[Kimster]

The suit alleges that "the Hustle" was a nickname for the bank's "High-Speed Swim Lane" or HSSL program, designed to streamline the mortgage origination process.


The government says the program was started by mortgage lender Countrywide Financial, but continued after it was purchased by Bank of America in 2008.

http://money.cnn.com/2012/10/24/news/companies/bank-of-america-lawsuit/

 

[legalmania]

That's one billion Fannie and Freddie where's the other approx. 152 billion and counting? I know that these two corporations have been poorly run since I started following them in 95. They can blame the banks but F & F weren't paying attention to the books either. Corporate welfare at it's finest.

http://www.mygovcost.org/2011/02/12...mae-and-freddie-mac-153-billion-and-counting/