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U.S. Bank, Bank of America sued over mortgage securities
Hmmm..no happy dance icon...drats.
The endless trail of karma....
The other end of the mortgage fraud is hitting banks, esp. BOA...
all those worthless mortgage bonds that were sold into trusts and pensions plans, have come back to bite the banks.
The U.S. credit union regulator said on Wednesday it filed a lawsuit against U.S. Bank and Bank of America over mortgage securities sold in the years leading up to the financial crisis.
The National Credit Union Administration (NCUA) said the banks broke state and federal laws by failing their duties as trustees for 99 residential mortgage-backed securities trusts.
The banks sold $5.8 billion in securities to five corporate credit unions that later failed after the products lost value.
The regulator accused U.S. Bank and Bank of America of knowing about defects in the mortgage loans but not providing required notices to the investors.
http://www.stltoday.com/business/local/u-s-bank-bank-of-america-sued-over-mortgage-securities/article_d88a38d2-68d6-58d4-8b50-3793345a82b3.htmlThe National Credit Union Administration (NCUA) said the banks broke state and federal laws by failing their duties as trustees for 99 residential mortgage-backed securities trusts.
The banks sold $5.8 billion in securities to five corporate credit unions that later failed after the products lost value.
The regulator accused U.S. Bank and Bank of America of knowing about defects in the mortgage loans but not providing required notices to the investors.