The Huffington Post has revealed that 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. The audits conclude the banks
cheated the government by overvaluing their losses on foreclosed homes
and submitting faulty and defective documents to get federal
reimbursement. According to the audit, the banks—Bank of America,
JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial—violated the
False Claims Act, which protects the government from fraudulent billing.
The findings have been referred to the U.S. Department of Justice.