Fannie, Freddie Knew Of Risks In $27M MBS Buy: Countrywide

Law360, Los Angeles (February 20, 2013, 5:40 PM EST) -- Countrywide Financial Corp. asked a California federal judge Wednesday to throw out Fannie Mae and Freddie Mac's lawsuit alleging they were duped into buying $26.6 billion in toxic mortgage-backed securities, arguing that they were sophisticated market participants.

At a hearing before U.S. District Judge Mariana R. Pfaelzer, Countrywide's lawyers portrayed Fannie Mae and Freddie Mac, which the federal government took over at the height of the global economic crisis in 2008, as recklessly ignoring its own guidelines when it came to purchasing mortgage-backed securities.

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