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 (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. ...
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 — 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.
Nearly eight years after Bank of America bailed out Countrywide Financial, a federal appeals court has ruled that BofA should not have been held liable for Countrywide’s “Hustle” scam in which the company sold Fannie Mae and Freddie Mac a ton of poorly underwritten mortgages knowing that they were worthless.
NEW YORK — The U.S. government has asked a judge to order Bank of America Corp to pay US$2.1 billion, increasing its request for penalties stemming from a jury’s finding that the bank was liable for fraud over defective mortgages sold by its Countrywide unit.
The request in a court filing late Wednesday followed a December hearing where a judge asked the bank and the U.S. Justice Department to brief him on how he might base the penalties on Countrywide’s gains rather than losses resulting from the mortgage sales.