Feds Say Countrywide Hawked Bad Loans To Fannie, Freddie

Law360, New York (September 24, 2013, 7:51 PM EDT) -- Bank of America Corp. unit Countrywide Financial Corp. issued thousands of bad mortgages then sold them to Freddie Mac and Fannie Mae, government lawyers told jurors Tuesday, opening a long-awaited fraud trial against the bank.

Countrywide in 2007 and 2008 sold nearly 30,000 low quality loans to Freddie and Fannie, providing a short-term revenue boost but leaving the entites saddled with bad debt, lawyer Pierre G. Armand said in opening statements in Manhattan federal court.

Countrywide used a program called High-Speed Swim Lane, known as HSSL...
To view the full article, register now.