Federal investigators have concluded that the nation’s five biggest mortgage lenders defrauded taxpayers in their handling of foreclosures on homes purchased with government-back loans, officials said Monday. The five audits investigated Bank of America, JP Morgan Chase, Wells Fargo, Citigroup, and Ally Financial, sources said. The audits found that the banks cheated taxpayers by filing for federal reimbursement on foreclosed homes that then sold for less than the outstanding loan balance—and filed defective and faulty documents to the Federal Housing Administration to obtain the reimbursement. The internal watchdog group at the Department of Housing and Urban Development—the department that conducted the audit—will now turn the audits over to the Department of Justice, which will then decide whether or not to press charges.
CHEAT SHEET
TOP 10 RIGHT NOW
- 1
- 2
- 4
- 5
- 7
- 8
- 9
- 10