Damage demands could run into billions of dollars against 17 banks named in lawsuits filed by the Federal Housing Finance Agency on September 2, 2011, in an effort to repay mortgage meltdown losses. According to the Los Angeles Times, the lawsuits “for the most part accused the banks of negligence in misrepresenting the risks embedded in securities backed by subprime mortgages and other risky loans,” although some of the lawsuits also allege fraud.
The 17 banks named in the lawsuits filed by the federal regulator for Fannie Mae and Freddie Mac includes J.P Morgan Chase, Bank of America, Citigroup and Deutsche Bank. The Times added that the lawsuits “illustrate how federal authorities, largely stymied in attempts to mount criminal prosecutions related to the mortgage crisis, are targeting Wall Street in civil lawsuits.” The National Credit Union Administration is planning to sue up to 10 banks for selling money-losing mortgage bonds to credit unions.
The mortgage crisis affected millions of people across the country, but our Washington DC and Maryland bankruptcy attorney can help explain the Chapter 7 and Chapter 13 bankruptcy rules as well as how to protect your assets. If you are facing foreclosure or just overwhelmed with debt and want to make a plan reestablishing credit, contact our office today for a free phone consultation.
Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy lawyer