Washington - The United States on Wednesday filed a civil mortgage fraud lawsuit against Bank of America, accusing it of deliberately generating and then selling thousands of toxic home loans that later defaulted to Fannie Mae and Freddie Mac.
US Attorney Preet Bharara in Manhattan said in a statement that the sales had resulted in more than $1bn of losses and "countless" foreclosures.
He said the case is the US department of justice's first civil fraud lawsuit over mortgage loans sold to Fannie Mae or Freddie Mac.