U.S. seeks $ 864M from BofA over Countrywide
NEW YORK | Federal prosecutors want Bank of America Corp. to pay about $864 million as a result of losses incurred by the government after it bought thousands of home loans made by Countrywide Financial during the housing boom.
U.S. attorney Preet Bharara made the request in documents filed late Friday with the U.S. District Court in Manhattan.
A jury last month found Bank of America Corp., which acquired Countrywide in 2008, liable for knowingly selling thousands of bad home loans to Fannie Mae and Freddie Mac between August 2007 and May 2008.
The panel also returned the verdict against Countrywide and a former executive, Rebecca Mairone.
The trial related to mortgages the government said were sold at breakneck speed without regard to quality as the economy headed into a tailspin.