Jury Sides with Government Over BofA in Mortgage Fraud Case
October 25, 2013
Countrywide Financial Corp. committed fraud when it sold questionable mortgages to Fannie Mae and Freddie Mac prior to the financial crisis, a New York federal jury determined this week. Bank of America acquired CFC in 2008 and is liable for the fraud. The jury also found that Rebecca Mairone, a former chief operating officer for CFCs subprime division, Full Spectrum, is liable for fraud for her role in leading its Hustle loan program, which was designed by Countrywide to speed up approvals for unqualified borrowers.