NEWYORK – Countrywide Mortgage, the mortgage unit of Bank of America, has been found liable for fraud by a New York Jury. Countrywide dealt in hundreds of thousands of mortgage transactions in Michigan and throughout the Untied States. The jury has given the United States Government a major win stemming from the massive mortgage crisis.
The jury came back with the following findings:
- Bank found liable on one civil fraud charge
- Verdict seen as a major win for the U.S. govt
- Former Countrywide exec found liable on one fraud charge
The U.S. Justice Department seeking up to $848.2 million and above. This would be the gross loss it said Fannie Mae and Freddie Mac suffered on the loans. U.S. District Judge Jed Rakoff will decide on the penalty. Arguments on how the judge will assess penalties are set for Dec. 5.
In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006 Countrywide financed 20% of all mortgages in the United States.