According to BusinessInsider there are two big reasons why the FHFA says Goldman's actions were fraudulent. In short, they are the money it paid to get a window into the mortgage origination process and Dan Sparks.
Here's the first. From a key sentence in the FHFA lawsuit:
Goldman funded mortgage originators, who encouraged property appraisers to inflate home values by firing them if they didn't and gave half million dollar loans to people like hairdressers and gardeners.
The other main reason Goldman is getting sued for fraud is that some of its employees signed the "shelf registration documents" registering the securities for multiple issuance with the SEC. The FHFA alleges that those employees made false statements and omitted facts such as: A number of the properties were stated as "owner-occupied" when in fact they were second homes or investment properties. (The FHFA says this is material because a borrower who lives in a mortgaged property is less likely to stop paying their mortgage and thus a better investment.)
To find out more read http://www.businessinsider.com/goldman-fhfa-lawsuit-2011
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