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The United States Department of Justice (DOJ) is seeking $1 billion from Bank of America in a lawsuit over allegations of mortgage fraud. According to the Associated Press, the DOJ alleges that Bank of America sold defective mortgages to customers in a program known within the bank as “the Hustle”. The mortgages were then reportedly purchased by bailed-out financial firms Fannie Mae and Freddie Mac, which resulted in over $1 billion in losses for taxpayers, according to the U.S. Attorney for the Southern District of New York. “[Bank of America] cast aside underwriters, eliminated quality controls, incentivized unqualified personnel to cut corners, and concealed the resulting defects,” said U.S. Attorney Preet Bharara. “These toxic products were then sold to the government-sponsored enterprises as good loans. This lawsuit should send another clear message that reckless lending practices will not be tolerated.” People with toxic mortgages should be aware that filing for bankruptcy stops the foreclosure process. Kevin D. Judd Law Firm of Kevin D. Judd
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