Confidential Federal Audits Accuse Five Biggest Mortgage Firms Of Defrauding Taxpayers

WASHINGTON -- A set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans, four officials briefed on the findings told The Huffington Post.

The five separate investigations were conducted by the Department of Housing and Urban Development’s inspector general and examined Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, the sources said.

The audits accuse the five major lenders of violating the False Claims Act, a Civil War-era law crafted as a weapon against firms that swindle the government. The audits were completed between February and March, the sources said. The internal watchdog office at HUD referred its findings to the Department of Justice, which must now decide whether to file charges.

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http://www.huffingtonpost.com/2011/05/16/foreclosure-fraud-audit-false-claims-act_n_862686.html

K/R


edited for spelling

and walk them through the allegations and potential liability each of them face, the sources said."

This should give the banks the information they need to do a better job of covering their tracks.

I'm not sure I have the faith to trust that there will be prosecutions. But it is nice to hope so.

I'll believe it when they do.