U.S. Government Sues Bank Of America For â€œSpectacularly Brazenâ€ Mortgage Fraud (http://www.globalethics.org/newsline/2012/10/29/brazen-mortgage-fraud/)
"But bank says it can’t be held responsible for fallout from economic downturn
NEW YORK and CHARLOTTE, N.C.
Bank of America, one of the largest lenders in the United States, was hit with a $1 billion federal fraud lawsuit in which the bank and its Countrywide Financial mortgage unit are accused of selling defective loans to Fannie Mae and Freddie Mac, quasi-public mortgage agencies now under control of the federal government.
Those loans, the Department of Justice claims, later went into default.
The Associated Press says in an unbylined report that the suit also alleges deliberate deception and a subsequent cover-up, painting “an unflattering picture of a doomed lender.” The suit alleges that “executives at Countrywide Financial urged workers to churn out loans, accepted fudged applications and tried to hide ballooning defaults,” notes the AP.
Manhattan-based U.S. attorney Preet Bharara, in a statement announcing the suit, called the actions “spectacularly brazen,” according reports Bloomberg. “Through a program aptly named ‘the Hustle,’ Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill.”
According to the Charlotte Observer, the suit “opens a new chapter in the Charlotte bank’s long-running legal woes, which have pummeled its earnings. Bank of America already has lost billions of dollars through write-downs and legal settlements related to Countrywide’s lending practices and the bank’s 2009 acquisition of Merrill Lynch.”
Bank of America has denied the allegations, saying it cannot be expected to reimburse every entity that lost money due to the economic downturn, reports USA Today."
I say good for the government, with my personal experience with Bank of America they most likely deserve it. They probably DID sell defective loans and they probably DID "churn out loans, accepted fudged applications and tried to hide ballooning defaults".
My story is slightly different, however Bank of America made the similiar claim, that "we are not responsible for the money taken out of your escrow account for a tax that doesn't exist ". They did not want to reimburse me a couple thousand dollars, why would they want to pay out billions?
On top of their lying and cheating AND other issues they have had in the past with mortgages, their customer service is horrible. I fought for 6 months explaining explaining my story over and over and over again my to different employees and got no where. I finally re-financed my mortgage with another lender.
In my advice, do not ever get a mortgage, bank account, credit card or any loan through Bank of America!
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