Gov't Defends $1B BofA Lawsuit Over 'Defective' Mortgages

Law360, New York (August 13, 2013, 6:24 PM EDT) -- Evidence shows that a Bank of America Corp. unit deliberately wrote and sold faulty mortgages in the run-up to the financial crisis, government lawyers argued Tuesday, asking a New York federal judge to let their $1 billion fraud case against the bank go to trial.

Bank of America subsidiary Countrywide Financial Corp. through a reckless mortgage-originating system called the High-Speed Swim Lane underwrote bad mortgages at a rate far exceeding the industry standards, Assistant U.S. Attorney Pierre G. Armand said at oral arguments before U.S. District...
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