Don't know what's sadder about this story: That it happened or that it's tragically unsurprising

[marmar]

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.

The federal audits mark the latest fallout from the national foreclosure crisis that followed the end of a long-running housing bubble. Amid reports last year that many large lenders improperly accelerated foreclosure proceedings by failing to amass required paperwork, the federal agencies launched their own probes. ..............(more)

The complete piece is at: http://www.huffingtonpost.com/2011/05/16/foreclosure-fraud-audit-false-claims-act_n_862686.html

[LiberalLoner]

1. Well this sucks. (Fuming.) n/t K&R

[ThomCat]

2. What are the odds that the government will have the courage

to take this to court and charge these criminals outright? x(

I think the relationship between the banks and our government is too friendly. This won't result in anything punitive happening. It will be swept under the rug and ignored. At best, something symbolic but meaningless will be done that results in business as usual continuing. I think we have seen that this administration has no interest in holding the banks accountable. :(

[izquierdista]

4. Symbolic, but meaningless

I think you've hit upon the three words that history books will use to sum up Obama's administration. :hide:

[Kablooie]

5. Oh, I wouldn't be surprised if there are a few fines. Nothing too extreme though.

[drpepper67]

3. I would have been more surprised by finding no fraud, N/T