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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Case Information

Case Title

United States of America ex rel. Edward O'Donnell


Case Number

1:12-cv-01422

Court

New York Southern

Nature of Suit

Banks and Banking

Judge

Jed S. Rakoff

Date Filed

February 24, 2012

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