24th Oct 2012
The Associated Press reported that a federal prosecutor sued Bank of America for more than $1 billion for mortgage fraud against Fannie Mae and Freddie Mac from 2007 to 2009. The suit alleges that Countrywide Financial, which was later bought by Bank of America, originated loans without making sure that borrowers could afford them. U.S. Attorney Preet Bharara said the lawsuit was the first civil fraud suit brought by the Justice Department concerning loans that were later sold to Fannie and Freddie.
ABC News article: http://ow.ly/eKCd5