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Tuesday, May 17, 2011
Boomer with Attitude / News HUD audit: Bank of America, Wells Fargo defrauded taxpayers
Posted By John Grooms on Tue, May 17, 2011 at 2:40 PM
Huffington Post today revealed the results of federal investigations of the country’s five largest mortgage companies. The five separate investigations by the Dept. of Housing and Urban Developent accuse the five lenders — Bank of America, Wells Fargo, Citigroup, JPMorgan Chase, and Ally Financial — of defrauding taxpayers. The fraud occurred, the investigations conclude, when the lenders presented false claims to the Federal Housing Administration in connection with foreclosures bought with government-backed loans.
According to the Huffington Post exclusive,
The resulting reports read like veritable indictments of major lenders . . . Two of the firms, including Bank of America, refused to cooperate with the investigations . . .The audit on Bank of America finds that the company -- the nation’s largest handler of home loans -- failed to correct faulty foreclosure practices even after imposing a moratorium that lifted last October. Back then, the bank said it was resuming foreclosures, having satisfied itself that prior problems had been solved.
The audits were finished in February and March; it is now up to the Justice Dept. to decide whether to prosecute. Read the entire story here.
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