HUD standards for the federal department of Housing and Urban Development. Jack Kemp used to run it under President H. W. Bush.
HUD is suing Bank of America for defective loans supplied by Countrywide, which Bank of America, to its eternal regret, bought in 2007.
The suit alleges that Countrywide failed to do due diligence before making mortgage loans and mortgage insurance under HUD guidelines.
Bloomberg reports: 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.