Bank of America Sued for Alleged Countrywide "Hustle" Loans

Bank of America (BOA) was sued in Federal Court today for civil mortgage fraud in a complaint seeking civil penalties as well as treble damages and penalties.  The suit alleges that Fannie Mae and Freddie Mac lost over $1 billion because of defaulted loans fraudulently sold them by Countrywide Mortgage and BOA. The suit alleges the from at least 2007 through 2009 implemented a new loan origination process called the "Hustle," which was intentionally designed to process loans at high speed and without quality checkpoints, and which generated thousands of fraudulent and otherwise defective residential mortgage loans sold to Fannie Mae and Freddie Mac (the GSEs) that later defaulted.  The Hustle continued under the ownership of BOA.