One of the things that has been galling is watching various officials tasked to protect the public from financial services miscreants is to have them prattle meaningless statistics about how the number of actions of various sorts that they’ve taken is up relative to the previous incumbents. That’s tantamount to a MASH unit tallying up what a great job they did in improving the vaccination rate while not even looking at a huge rise in the mortality rate and questioning whether their response was adequate.
NEW YORK (Reuters) - Abacus Federal Savings Bank, which caters to Chinese immigrants in New York and other communities, has been charged with selling hundreds of millions of dollars worth of fraudulent mortgages to Fannie Mae. The bank's managers and employees schemed to falsify loan applications so that borrowers would qualify for mortgages, Manhattan District Attorney Cyrus Vance said on Thursday. It then sold those mortgages to Fannie Mae, Vance said. Nineteen employees of the bank also were charged in the case, eight of whom have pleaded guilty. ...
NEW YORK (Reuters) - Abacus Federal Savings Bank, which caters to Chinese immigrants in New York and other communities, has been charged with selling hundreds of millions of dollars worth of fraudulent mortgages to Fannie Mae.
(NEW YORK) — The top federal prosecutor in Manhattan sued Bank of America for more than $1 billion on Wednesday for mortgage fraud against Fannie Mae and Freddie Mac during the years around the financial crisis. U.S. Attorney Preet Bharara said Countrywide Financial, which was later bought by Bank of America, churned out mortgage loans from 2007 to 2009 without making sure that borrowers could afford them. “The fraudulent conduct alleged in today’s complaint was spectacularly brazen in scope,” Bharara said in a statement.
Fannie Mae CEO Michael Williams plans to resign, the government-controlled mortgage giant said Tuesday. Williams, who took over as president and CEO of the troubled company in 2009, will continue as CEO until Fannie Mae's board names a successor. The firm did not provide a specific reason for Williams' departure; in a statement, Williams said only that he had decided that "the time is right to turn over the reins to a new leader." Williams will leave behind a firm still struggling to get its finances in order.
NEW YORK — A federal judge on Wednesday ordered Bank of America Corp to pay US$1.27 billion of damages after a federal jury found the second-largest U.S. bank liable for fraud over defective mortgages sold by its Countrywide unit.
U.S. District Judge Jed Rakoff in Manhattan ruled nine months after jurors found Bank of America and former Countrywide executive Rebecca Mairone liable for defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac through the sale of shoddy loans by the former Countrywide Financial Inc in 2007 and 2008.