Tag Archives: Countrywide

Brian “Woody” White of Homebridge Financial Services discusses how he shifted from focusing on tech to D&I and what mortgage companies need to consider when building their own D&I programs.

Bank of America's $1.27 billion penalty in the "Hustle" case has been overturned. Why does the former Countrywide exec who blew the whistle get to keep the reward money?

The U.S. Department of Justice sued Bank of America in August 2013, accusing the bank's Countrywide division of misrepresenting the mortgage-backed securities it sold to Fannie Mae and Freddie Mac in the years leading up to the financial crisis through a program known as the High Speed Swim Lane (HSSL, commonly known as "Hustle").

In the decision, Justice David Saxe wrote for a five-judge panel that the Bank of New York Mellon did not abuse discretion in arranging the settlement, but the court also said Barbara Kapnick, the state judge who approved the accord in January, erred in excluding claims by investors regarding loan modifications on the ground that the trustee didn’t properly investigate their strength, according to Reuters.

The ongoing legal battle between the U.S. government and Bank of America over the sale of soured loans to Fannie Mae and Freddie Mac before the financial meltdown continued last week as lawyers for the government argued against a motion to throw out a fraud verdict rendered against the bank.

U.S. attorneys in Los Angeles are reportedly preparing a civil lawsuit against former Countrywide Financial CEO and co-founder Angelo Mozilo for his alleged role in the subprime boom that led to a financial meltdown. Mozilo continues to be defiant, denying any culpability and saying in a recent deposition that that he had "no regrets" in the way that he managed Countrywide.