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BofA Sued by U.S. for $1 Billion Over Alleged Mortgage Fraud

Bank of America Corp. (BAC) was sued by the U.S. attorney in Manhattan for allegedly engaging in a scheme to defraud Fannie Mae and Freddie Mac.

The complaint alleges that Countrywide Financial Corp., which was later bought by Bank of America, implemented a loan- origination process that generated thousands of fraudulent or defective loans that were sold to Fannie Mae and Freddie Mac, according to a statement today from the Manhattan U.S. Attorney’s Office.

To contact the reporter on this story: Andrew Dunn in New York at adunn8@bloomberg.net

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net

Enlarge image Bank of America Sued for $1 Billion by U.S. Over Mortgages

Bank of America Sued for $1 Billion by U.S. Over Mortgages

Bank of America Sued for $1 Billion by U.S. Over Mortgages

Scott Eells/Bloomberg

Bank of America Corp. was sued by the U.S. attorney in Manhattan for allegedly engaging in a scheme to defraud Fannie Mae and Freddie Mac.

Bank of America Corp. was sued by the U.S. attorney in Manhattan for allegedly engaging in a scheme to defraud Fannie Mae and Freddie Mac. Photographer: Scott Eells/Bloomberg

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