The Justice Department and the Securities and Exchange Commission have sued Bank of America, alleging that traders at Bank of America willfully mislead investors about the quality of the residential mortgages tucked into the securities the banks sold at the start of the financial crisis.
Now, Bank of America faces civil charges for allegedly hiding the risks associated with $850 million worth of securities backed by home loans. The DOJ claims the bank knew that more than 40% of the mortgages it bundled into securities did not meet underwriting guidelines and sold them anyway.
Geoffrey Broderick, the senior partner of the Resolution Law Group, says “while the civil lawsuit is a step in the right direction, the allegations, if true, are criminal in nature. Why isn’t the government pursuing criminal charges against the banks and those who committed the criminal acts?“
Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”
The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.
The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com