{"id":5640,"date":"2014-07-31T00:00:00","date_gmt":"2014-07-31T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/07\/bank_of_americas_countrywide_m"},"modified":"2022-05-02T15:48:41","modified_gmt":"2022-05-02T20:48:41","slug":"bank-of-americas-countrywide-m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-of-americas-countrywide-m\/","title":{"rendered":"Bank of America\u2019s Countrywide Must Pay $1.3B for Faulty Mortgage Loans"},"content":{"rendered":"\n

U.S. District Judge Jed Rakoff in Manhattan is ordering Countrywide, a Bank of America (BAC) <\/a>unit, to pay $1.3 billion in penalties for faulty mortgage loans<\/a> that it sold to Freddie Mac (FMCC) and Fannie Mae (FNMA) leading up to the 2008 financial meltdown. This was the first mortgage fraud lawsuit<\/a> that the federal government brought to go to trial. <\/p>\n

The penalty is much less than the $2.1 billion maximum that the government had asked for. The government\u2019s mortgage lawsuit against Countrywide originated from a whistleblower case brought against Bank of America by Edward O\u2019Donnell, an ex-Countrywide executive.<\/p>\n

Rakoff determined that Freddie and Fannie paid close to $3 billion for High Speed Swim Lane loans. This, after a jury determined last year Countrywide and Rebecca Mairone, one of its ex-executives, were liable for selling thousands of defective loans to the government-sponsored enterprises. Mairone\u2019s penalty is $1 million.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

U.S. District Judge Jed Rakoff in Manhattan is ordering Countrywide, a Bank of America (BAC) unit, to pay $1.3 billion in penalties for faulty mortgage loans that it sold to Freddie Mac (FMCC) and Fannie Mae (FNMA) leading up to the 2008 financial meltdown. This was the first mortgage fraud lawsuit that the federal government […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3752],"tags":[],"class_list":["post-5640","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms"],"yoast_head":"\nBank of America\u2019s Countrywide Must Pay $1.3B for Faulty Mortgage Loans — Investor Lawyers Blog — July 31, 2014<\/title>\n<meta name=\"description\" content=\"U.S. District Judge Jed Rakoff in Manhattan is ordering Countrywide, a Bank of America (BAC) unit, to pay $1.3 billion in penalties for faulty mortgage — July 31, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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