The Huffington Post yesterday revealed information from a federal audit of five major banks. The data revealed to HuffPo sources shed more light on the problems related to America's foreclosure logjam.
Bank of America, JP Morgan Chase, Citigroup, Ally Financial and Wells Fargo engaged in misleading and potentially fraudulent behavior in its foreclosure proceedings, according to the report. Specifically, the audit unearthed violations of the False Claims Act and concluded that all five lenders "effectively cheated taxpayers by presenting the Federal Housing Administration with false claims: They filed for federal reimbursement on foreclosed homes that sold for less than the outstanding loan balance using defective and faulty documents," the Huffington Post reported.
Perhaps most importantly, as these types of allegations continue to surface, there will be added attention and dicussion on reform in the foreclosure/loan modification arena.