The Justice Department is suing Bank of America over misrepresenting their mortgage loans to customers, not checking them thoroughly for flaws and selling bad quality loans to borrowers. The people who spoke up about it were five investors who collectively lost $100 million due to Bank of America’s bad lending practices.
JPMorgan Chase is the country’s largest bank as of right now. Another thing that is interesting about them is that they were recently accused of selling bad mortgage securities to various investors. They were accused of this after the Justice Department’s Civil Division discovered after an investigation was conducted by their task force.
It is hard nowadays for homeowners to get their primary mortgages modified while secondary mortgages are a source of debt. Furthermore, many homeowners are being falsely accused of not paying mortgage payments on time, which lands them in foreclosure. Banks are not doing enough to help their customers.