$1B BofA Mortgage Suit May Usher Broad Crackdown On Banks

Law360, New York (October 24, 2012, 7:32 PM EDT) -- The U.S. Department of Justice's $1 billion False Claims Act suit accusing Bank of America Corp. of selling bad mortgages to Fannie Mae and Freddie Mac represents the first shot in a battle that could target other financial institutions that sold loans to the troubled mortgage giants, experts said Wednesday.

The suit, which claims BofA subsidiary Countrywide Financial Corp. sold the defective loans to Fannie and Freddie through a fraudulent origination program called “the hustle,” is the first the government has launched over mortgages sold to...
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