Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, October 24, 2012

DOJ Sues BofA for $1 Billion Over "Spectacularly Brazen" Fraud

Another lawsuit was filed today against Bank of America, this one in connection with the "hustle" home loan program it acquired with its purchase of Countrywide Financial in 2008.  According to the U.S. District Attorney's office in Manhattan, the bank churned out mortgages without conducting sufficient due diligence and then got rid of the loans by selling them to Fannie Mae and Freddie Mac without warning them of their defects.  The government calls it "spectacularly brazen" fraud and seeks $1 billion.

NYTimes, Federal Prosecutors Sue Bank of America Over Mortgage Program

WSJ, U.S. Sues BofA for $1 Billion Over Mortgage Losses

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