BofA’s Countrywide Loans Were ‘In the Ditch,’ U.S. Tells Jury
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Bank of America Corp.’s Countrywide unit defrauded Fannie Mae and Freddie Mac by selling them thousands of loans known to be defective, an attorney for the U.S. said in closing arguments in a lawsuit against the lender.
The U.S. last year joined a whistle-blower action against Bank of America filed by former Countrywide executive Edward O’Donnell. The U.S. claims Countrywide, which the Charlotte, North Carolina-based bank acquired in 2008, earned at least $165 million using a new loan origination process called the “High Speed Swim Lane” or HSSL.