A federal jury has found Bank of America (and a current JPMorgan executive) liable for a Countrywide Financial program that knowingly sold piles of cruddy home loans to Fannie Mae and Freddie Mac, meaning the bank could face nearly $850 million more in penalties added to the $40 billion-plus court tab it has tallied since acquiring the cratering mortgage-lender in 2008.
The Justice Dept.’s lawsuit against BofA and former Countrywide exec Rebecca Mairone alleged that, through a program called the High Speed Swim Lane (or the “Hustle”), the lender deliberately removed the standard speed bumps and tollgates to loan approval. Doing away with these underwriting safeguards allowed Countrywide to quickly sign off on hundreds of millions of dollars in loans that should never have been made, all with the goal of selling these mortgages off to Fannie and Freddie as quickly as possible.
About 43% of loans sold by Countrywide to Fannie and Freddie while the Hustle was running turned out to be defective.
http://consumerist.com/2013/10/23/bank-of-america-found-liable-for-countrywides-hustle-scam/
Gibson and other lawyers say any appeal by Bank of America would likely focus on a ruling made by the judge before the trial that endorsed a government position that it can bring a FIRREA case against a bank when the bank itself was the financial institution affected by the fraud. “Amazing indeed.”
Holder can try these cases, but; he cannot do anything else except this and other discrimination based allegations. Congress is not important nor is Fast and Furious or his Contempt to a State Court.
This is indeed new law, but; Holder and pals were yelling the race card again this week. It is not fashionable to work hard and be successful the old fashioned way like a Ben Carson, a Condoleeza Rice, or a Herman Cain did.
Nancy Pelosi’s son sold mortgages for Countrywide, so I’m surprised they didn’t hire him to work on this....or maybe they have quietly. That means “we will not be able to read it until we pass it!”