$17 Billion Settlement for Fraudulent FHA Loans
Bank of America agreed to pay a settlement of nearly $17 billion in response to allegation of mortgage loan fraud. Although $800 million will go to the FHA fund and $200 million to Ginnie Mae, the remaining $16 billion of the settlement will be used to resolve fraud claims across the country. Of the $16 billion, $7 billion will be reserved for consumer relief, which will be distributed in a variety of ways to those hit hardest during the housing crisis. [8/22/14]
