Tags: united states | bank of america | fraud | mortgages

US Seeks $2.1 Billion From Bank of America in Fraud Case

Thursday, 30 Jan 2014 09:06 AM

The U.S. government has asked a judge to order Bank of America Corp. to pay $2.1 billion, increasing its request for penalties stemming from a jury's finding that the bank was liable for fraud over defective mortgages sold by its Countrywide unit.

The request in a court filing late Wednesday followed a December hearing where a judge asked the bank and the U.S. Justice Department to brief him on how he might base the penalties on Countrywide's gains rather than losses resulting from the mortgage sales.

The Justice Department had previously asked for only $863.6 million based on gross losses it said government-sponsored mortgage finance companies Fannie Mae and Freddie Mac incurred on loans purchased from Countrywide in 2007 and 2008.

The new request for $2.1 billion is based instead on gross revenue generated by the fraud, the government said.

A federal jury in New York in October had found Bank of America and Rebecca Mairone, a former midlevel executive at Countrywide, each liable for fraud in the civil lawsuit.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
InvestingAnalysis
The U.S. government has asked a judge to order Bank of America Corp. to pay $2.1 billion, increasing its request for penalties stemming from a jury's finding that the bank was liable for fraud over defective mortgages sold by its Countrywide unit.
united states,bank of america,fraud,mortgages
170
2014-06-30
Thursday, 30 Jan 2014 09:06 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved