As part of this comparison, Bank of America agreed to maintain its new credit settlement and acquisition guidelines and to continue to train its staff through these guidelines. The biggest previous comparison was jpMorgan Chase (JPM), which agreed in November to pay $13 billion and admit it sold billions of toxic mortgage assets. The U.S. Attorney`s Office for the Eastern District of New York conducted a two-year investigation with its partners in the Department of Housing and Urban Development (HUD) to determine whether Bank of America knowingly insured FHA loans in violation of current insurance guidelines. The investigation showed that the bank encouraged the FHA to insure loans that are not eligible for FHA mortgage insurance. As a result, HUD suffered hundreds of millions of dollars in losses. In addition, many Bank of America borrowers are defaulting on their FHA mortgages and have lost their homes or are losing their homes to enforced enforcement. Separately, the U.S. Public Interest Research Group, a national consumer group, found Monday that much of the bank accounts with the government were tax deductible.
The transaction responds to certain real and potential civil requests from the DoJ, the Securities and Exchange Commission (SEC) and the Attorneys General of California, Delaware, Illinois, Kentucky, Maryland and New York (State AGs), all of whom are members of the Financial Action Task Force for Combating Risk Fraud, FTAs; and the Government National Mortgage Association (Ginnie Mae), as well as all pending actions against bank of America against bank of America companies brought by the Federal Deposit Insurance Corporation (FDIC). « As a direct advocate of FHA-insured loans, Bank of America plays a crucial role in the granting of real estate loans, » said U.S. attorney Loretta E. Lynch for the Eastern District of New York. « He is a doorman who is responsible for providing public funds to facilitate mortgage lending to first-time buyers and buyers of low-income homes, homeowners for the elderly and others who are looking for or owning homes across the country, including many living in the eastern part of New York.