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Released: October 05, 2011
BofA may face HUD fraud claims for defective Countrywide loans
Source: Hugh Son, Dawn Kopecki & Donal Griffin, Washington Post/Bloomberg (Free Registration)
Bank of America Corp., the biggest U.S. lender, should face fraud claims after its Countrywide unit submitted faulty borrower data for federally insured mortgages, according to an audit by a U.S. watchdog.
Half of 14 loans reviewed had “material underwriting deficiencies” that resulted in more than $720,000 in losses, according to a Sept. 30 report from the Office of the Inspector General for the Department of Housing and Urban Development. A regional inspector general for HUD, Kelly Anderson, recommended that the agency’s lawyers pursue legal remedies against Charlotte, North Carolina-based Bank of America.
Read Full Article: BofA may face HUD fraud claims for defective Countrywide loans
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