The united states regulators enjoys filed a lawsuit against Bank off The usa, billing the school having charging taxpayers more $step 1 billion of the attempting to sell tens and thousands of phony mortgage loans so you can government-backed people (GSEs) Federal national mortgage association and you will Freddie Mac computer.

Fannie and you can Freddie offer home loans, which they purchase from lenders exactly who began all of them. It keep any of these mortgage loans and some try securitized, meaning he or she is available in the form of ties which the GSEs ensure.

The loan scam lawsuit, that was originally recorded because of the a great whistleblower, is the United states Institution out-of Justice’s basic civil swindle lawsuit to get pursued more mortgages which were marketed on the large home loan financiers.