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...
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Case Information

Case Title

United States of America ex rel. Edward O'Donnell

Case Number



New York Southern

Nature of Suit

Banks and Banking


Jed S. Rakoff

Date Filed

February 24, 2012

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