BofA Calls Feds' $1B Suit Over Faulty Mortgages A Bluff

Law360, New York (August 7, 2013, 6:42 PM EDT) -- The federal government was bluffing when it sued Bank of America Corp. for $1 billion and accused it of selling defective mortgage loans to Fannie Mae and Freddie Mac through a fraudulent origination program, the bank said in a New York federal court Wednesday.

The qui tam suit brought by former Countrywide Financial Corp. Senior Vice President Edward J. O'Donnell claims that Countrywide, a BofA subsidiary, sold the defective loans to Fannie and Freddie through a program called High-Speed Swim Lane, also known as “the hustle.”...
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