NEW YORK ( TheStreet) -- Bank of America (BAC) is being sued by the U.S. Department of Justice for over $1 billion for alleged multi-year mortgage fraud against government-sponsored entities Fannie Mae and Freddie Mac.
The complaint alleges that from atleast 2007 to 2009, "Countrywide and later Bank of America, following the acquisition of Countrywide in 2008, implemented a new origination process called "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 that later defaulted causing over $1 billion dollars in losses and countless foreclosures."
This is the first civil lawsuit filed by the Department of Justice concerning mortgage loans sold to the agencies, according to a statement.
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