mortgage fraud

7 Stories

Banks Pay for Mortgage Abuse—With Rubber Checks

Company handling settlement didn't deposit money with the bank

(Newser) - It took years for homeowners to get even the relatively small checks afforded them in a $3.6 billion settlement with some of the country's biggest banks over mortgage abuses—and when they finally arrived this week, many of them promptly bounced, the New York Times reports. "Is... More »

US Sues Bank of America for $1B in 'Hustle' Scheme

Prosecutors says bank foisted bum mortgages on Fannie, Freddie

(Newser) - The Justice Department has filed a $1 billion lawsuit against Bank of America over an alleged mortgage scheme known as the "Hustle" invented by its Countrywide unit. According to Manhattan US Attorney Preet Bharara, Bank of America and Countrywide developed a procedure to rapidly generate thousands of toxic loans... More »

Feds Sue Deutsche Bank Over Reckless Mortgage Lies

$1B suit may be first of many

(Newser) - The federal government is suing Deutsche Bank for $1 billion over shoddy mortgages that cost taxpayers hundreds of millions of dollars. The suit accuses the lender of lying to the government while arranging federal insurance on mortgages that it had recklessly approved for poor credit risks, reports the Los Angeles ... More »

Anonymous: Leaked BofA Emails Show Mortgage Scheme

Bank denies plot drive up costs

(Newser) - A trove of leaked documents apparently reveals that Bank of America may have been involved in a scheme to bilk homeowners—a claim the bank rigorously denies. Hacker group Anonymous, which leaked the documents, says that more damning information is on the way, reports Business Insider . The emails, which allegedly... More »

Investors Sue Countrywide Over 'Massive Fraud'

Their triple-A-rated securities are now junk, they claim

(Newser) - Investors are suing Bank of America’s Countrywide mortgage unit, claiming they were fraudulently led into purchasing supposedly triple-A-rated mortgage-backed securities that turned out to be junk. Between 2005 and 2007, the investors bought hundreds of millions of dollars of securities that were supposed to be “conservative” and “... More »

Goldman Pays $550M to Settle SEC Fraud Case

It's the largest such fine in history

(Newser) - Goldman Sachs has agreed to pay $550 million to settle civil fraud charges that accused the Wall Street giant of misleading buyers of mortgage-related investments. The deal calls for Goldman to pay the Securities and Exchange Commission fines of $300 million. The rest of the money will go to compensate... More »

FBI Plans Massive Sweep of Mortgage Fraudsters

Hundreds of arrests expected next week

(Newser) - FBI agents will fan out across the country next week and arrest hundreds of shady lenders who duped people into taking mortgages they couldn't afford, reports the Financial Times . The crackdown on mortgage fraud will go after companies that misled people about their loans and potential rescue programs, or that... More »

7 Stories

AROUND THE WEB