If you’ve been a victim of a widespread mortgage scam, you’ll be glad to know that banks are not getting away with it. The federal agency that runs Fannie Mae and Freddie Mac is getting ready to file suits against a dozen big banks for misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, saying that they failed to perform due diligence and thus ignored evidence that borrowers’ incomes were either inflated or falsified (something that the banks themselves encouraged). The government is asking for BILLIONS of dollars in compensation.
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