JANUARY 23, 2012
Judicial Watch filed a Freedom of Information Act (FOIA) lawsuit on January 3, 2012, against the Obama Department of Justice (DOJ) and U.S. Department of Housing and Urban Development (HUD) to obtain documents pertaining to accusations of fraud against the nation’s five largest mortgage companies and the creation of “federal accounts” to settle probes into faulty mortgage practices. The Obama administration has reportedly been engaged in settlement negotiations behind closed doors with mortgage companies that would result in at least $20 billion in payments from the nation’s major banks.
Pursuant to a Judicial Watch FOIA request filed with the DOJ and HUD on May 17, 2011, Judicial Watch seeks the following records:
- A set of government audits used to support allegations that the nation’s five largest mortgage companies of defrauding taxpayers in the handling of foreclosures on homes purchased with government-backed loans.
- A term sheet which outlined the Obama administration’s settlement offer to the mortgage companies accused of fraud. The terms described on this document allegedly included the creation of a federal account funded by the nation’s largest mortgage firms to help distressed borrowers avoid foreclosure and settle state and federal probes into alleged faulty mortgages practices.
Official Legal Documents
- Complaint - January 3, 2012