New trouble for BoA, US sues for 1B$ MortgageFraud

[MMM]

US suit cites ‘brazen’ mortgage fraud at Countrywide, even after Bank of America purchase
October 24, 12:42 PM

NEW YORK — The latest federal lawsuit over alleged mortgage fraud paints an unflattering picture of a doomed lender: Executives at Countrywide Financial urged workers to churn out loans, accepted fudged applications and tried to hide ballooning defaults.

The suit, filed Wednesday by the top federal prosecutor in Manhattan, also underscored how Bank of America’s purchase of Countrywide in July 2008, just before the financial crisis, backfired severely.

The prosecutor, Preet Bharara, said he was seeking more than $1 billion, but the suit could ultimately recover much more in damages.


see: www.washingtonpost.com/business/us-sues-bank-of-america-for-1b-for-mortgage-fraud-suit-concerns-countrywide-loans/2012/10/24/6273f68a-1df7-11e2-8817-41b9a7aaabc7_story.html

[ukipa]

I don't think we are quite done with Mr. Angelo Mozilo. He is the one who issued the orders to his peers to do what Countrywide did. Bank of America purchased a boat load of problems when the bought Countrywide and they should go after him.

Bank of America screwed-up big time!

[niseag]

as far as I remember they took Countrywide to enhance their mortgage sector and did not do their homework, but they were induced to buy it by the Federal Reserve which wanted the company leaers out of the business, no one expected quite that much trouble because the lack of a relation to reality high up in DC is well known. BoA is taking a beating, and probably will for another year till they change their habit of trying to sit it out. They should be proactive but the current management of BoA will never learn