Freddie Mac

Mounting Fannie And Freddie Losses From LIBOR Fraud

I'm sure the banks will be dealt with just as severely as they were the last time they engaged in massive fraud. Oh, wait: (Reuters) - Mortgage finance giants Fannie Mae and Freddie Mac may have suffered more than $3 billion in losses due to

Feds Sue Bank Of America

Federal prosecutors hit Bank of America with a $1 billion lawsuit Wedesday, accusing the bank of mortgage fraud that contributed to the housing crisis. Bank of America became entangled in the scheme -- known as “High-Speed Swim Lane” or “Hustle” -- when it purchased Countrywide Financial in July 2008, just as the economy was slipping into recession. Countrywide, a mortgage lending giant, was already known for approving risky loans when it introduced its “Hustle” program to churn out more loans, effectively eliminating a system that ensured the mortgages were being made to buyers who could afford them. A top U.S. attorney said the bank’s fraud was “spectacularly brazen in scope.”

Federal Regulator Rejects Mortgage Balance Reduction

This really is a kick in the gut to struggling homeowners. To turn this into a straight transaction analysis when underwater mortgages are such a huge drag on the economy is just plain crazy: The federal regulator for government-backed mortgage