Bank of America hit with government lawsuits over mortgages

CNNMoney reports that the Department of Justice has filed a civil lawsuit alleging that Bank of America Corp. defrauded buyers of mortgage-backed securities by lying about the quality of the home loans involved. These securities played a key role in the 2008 financial crisis, failing in huge numbers as the housing market collapsed.Read more

 

Tapering of stimulus could start as soon as September

The New York Times reports that two Federal Reserve regional presidents suggested that the central bank could ease its efforts to stimulate the economy sooner rather than later, but stopped short of providing an exact time frame. Read more

 

Report: U.S. mortgage applications rise, but so do rates

Reuters reports that applications for mortgages edged up last week, even though interest rates resumed their ascent. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 0.2 percent in the week ended Aug 2. The gauge of loan requests for home purchases added 0.7 percent after falling in four of the past five weeks. Read more