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Seventeen banks, dozens of their subsidiaries and over one hundred bank officers were named as defendants in a lawsuit filed Friday by the Federal Housing Finance Agency (FHFA), conservator of government sponsored enterprises Freddie Mac and Fannie Mae (The GSEs.) The civil suits, filed in U.S. District Court for the Southern District of New York and a federal court in Connecticut allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed...

The Huffington Post reported late yesterday that five of the country's largest mortgage lenders may have defrauded taxpayers by filing false claims with the Federal Housing Administration (FHA). Confidential audits conducted on Bank of America, JP Morgan Chase, Wells Fargo, Citigroup, and Ally Financial (formerly GMAC) provided information which has now been referred to the Department of Justice for a decision on filing charges. The author of the article, Shahien Nasiripour, said the Inspector General...

Of course news that Bank of America had settled GSE repurchase claims on loans written by Countrywide (for pennies on the dollar) brought out a chorus of back door bailout boo birds. But I must remind, the fun part isn't over yet! ...

Bank of America Home Loans will exit the first mortgage wholesale channel to focus more operational resources toward fulfillment capacity for its leading direct-to-consumer retail channel, helping existing and new customers obtain mortgage financing. Bank of America will also devote additional resources toward enhancing its leadership positions in correspondent and warehouse lending. The exit will be completed following an orderly transition of loans currently in process....

"We have come up with some interesting ideas ... to enable some additional people to participate in this program, who may be unemployed or who need principal reductions and we look forward to speaking with you very very soon about these ideas," Herb Allison, Treasury assistant secretary for financial stability, told lawmakers on the House Oversight and Government Reform Committee. ...

Markets began higher on Tuesday, quickly turned negative, and roughly 90 minutes into the session have nearly bounced back to parity. News from around that nation has been mixed on Tuesday, with financial institutions beefing up capital, prices of houses falling in the first quarter, and the trade deficit expanding as expected. As of 11 am EST, the Dow had moved up 0.8% to 8425, while the S&P was still down t0.38% to 905.80, and the Nasdaq was down 0.87% to 1715.89. In an effort to shore up fresh...

Bank of America might need another injection of capital from the U.S. government, Moody's Investor Service said after a downgrade. Moody's cut the bank's senior debt to A2 from A1, the senior subordinated debt to A3 from A2, and the junior...