HUD Going After Bank Of America For Fraud

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.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
This entry was posted in Banks, mortgage and tagged , , , , , . Bookmark the permalink.