Countrywide, BofA Face Derivative Suit Over 'Toxic' Loans

Law360, San Francisco (March 24, 2014, 7:39 PM EDT) -- Countrywide Financial Corp. and Bank of America Corp.'s top brass were hit with a derivative shareholder suit in New York federal court on Friday, seeking to hold Countrywide responsible for a “toxic” high-speed mortgage approval process that could require Bank of America to pay $2.1 billion.

The suit, filed by shareholder Chaile Steinberg on behalf of Bank of America, claims that subsidiary Countrywide's “High Speed Swim Lane,” or HSSL, caused the lender's mortgage defect rate to skyrocket to 40 percent — a fact the company's leaders...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Steinberg v. Mozilo et al


Case Number

1:14-cv-02023

Court

New York Southern

Nature of Suit

Stockholders Suits

Judge

Andrew L. Carter, Jr

Date Filed

March 21, 2014

Law Firms

Companies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.