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FBN's Liz MacDonald on details of the U.S. Attorney suing Bank of America for over $1B for alleged mortgage fraud.
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Get some breaking news for you Bank of America is being sued by the justice department for more than one billion dollars for mortgage fraud.
For losses at Fannie Mae and Freddie Mac -- to explain further Elizabeth McDonnell.
Yes this is it really serious it it's the first time the Department of Justice says that it's bringing this -- of this kind -- recover losses and against Fannie Mae and Freddie Mac let's get right to the details here's the Manhattan US attorney.
Is saying in comments about this lawsuit against Bank of America having to -- countrywide loans reckless mortgage practices spectacularly.
Brazen.
And they -- taxpayers with the bill here's a deal -- the Department of Justice is basically seeking maximum damages and penalties.
Over a loan program run by countrywide countrywide basically originated one point three trillion dollars worth of mortgages between 20052007.
They represented a third of -- But a third of -- book in 2007.
The -- implies essentially that Britain's country countrywide helped push.
Fannie and Freddie into the arms of US taxpayers.
With their very reckless practices that basically removed underwriters.
And swapped in so called long processors.
Who are paid bonuses based on volume.
Buying of bonuses -- done challenging any.
Put quality controls a defective practice.
At the Justice Department is waning almost a single finger at countrywide alone for pushing Fannie Freddie into bail out territory.
Yes -- had been well we and they are gonna move that aren't just as -- has -- this is the sixth time they've moved against the bank.
But we've ever seen them saying good look at we're trying to recover losses incurred by Fannie and Freddie and sick TARP is joining that Justice Department suit what's the -- they're saying serious and significant misrepresentations.
That Bank of America made.
Before and do warning that time the taxpayers invested.
45 billion bucks in the banks through the TARP program so.
With this -- is also alleging by the -- Bank of America we've reached out to them.
They have not return calls are coming yet that loss of his alleged that Bank of America -- -- refuse to repurchase back.
From Fannie and Freddie these defective loans that had.
This is a seriously the loss that we're gonna be watching very very closely.
-- the euphemisms inside the bank where this was called the high.
High speeds swim -- for this mortgage loan programme to get volume out the door.
And into the off into the hands of Fannie and Freddie went and traveled loan program the -- that's what it was called behind the scenes called a hostile.
Now says a lot right there thank you so much we'll be getting back to you more details -- will be watched --
