Bank of America accused of fraud in mortgage

U.S. authorities accuse Bank of America of fraud at $ 1 billion

The prosecutor's office of New York filed a lawsuit against Bank of America, accusing him of cheating with a mortgage of more than $ 1 billion. The lawsuit alleges that the company Countrywide financial, are up to the financial crisis, one of the largest lenders in the U.S. housing market, in 2007, in large numbers started to give loans to buy real estate without checking to the right degree, can the borrower to make payments on them. Then, as the prosecutor's office, thousands of these loans were sold to the U.S. government affiliated mortgage companies Fannie Mae and Freddie Mac.
     According to prosecutors, the leadership of Countrywide well knew about the violations. However, rather than to inform Fannie Mae and Freddie Mac, the poor quality of the assets sold, the mortgage company staff did their best to hide this information. The practice of selling "toxic" mortgage loans continued throughout 2009 - long after both were on the verge of bankruptcy due to the crisis in the housing market in 2008, Countrywide acquired the Bank of America. As recalled by the prosecutor's office, the task of Fannie Mae and Freddie Mac was to contribute to the development of the mortgage market in the U.S.. Lawsuit against Bank of America became the first in the U.S. Department of Justice investigation of the sale of the banks, Fannie Mae and Freddie Mac mortgages.