Daily News: October 25, 2013

Bloomberg: Countrywide Found Liable for Defective Loans

Bloomberg reported that Bank of America’s Countrywide unit was found liable by a jury for selling Fannie Mae and Freddie Mac thousands of defective loans in the first mortgage-fraud case brought by the U.S. government to go to trial.

Bloomberg said a federal jury also found former Countrywide Financial executive Rebecca Mairone, who was the only individual named as a defendant, liable for defrauding the U.S.

Bloomberg noted that a U.S. attorney asked the judge to impose a penalty of as much as $848 million, representing the gross losses to Fannie Mae (FNMA) and Freddie Mac.

To read the Bloomberg story click here.