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BOA to judge: Our penalty for fraud should be zero

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Mortgage Professional America | 21 Nov 2013, 04:57 AM Agree 0
The lending giant has asked a federal judge to impose no penalty despite being found liable for fraud over the sale of shoddy mortgages by its Countrywide Financial unit.
  • Joel Epstein | | 21 Nov 2013, 09:31 AM Agree 0
    Chutzpah is the perfect term to describe BofAm's actions and attitude. The judge should double the penalty.
    Still amazed that virtually no one has been held personably accountable for wrecking the industry and economy.
  • Anon | | 21 Nov 2013, 09:38 AM Agree 0
    B.S.: B of A was forced to acquire CWB with a gun to its head. The institution CWB was bankrupt and this was a favor to taxpayers, the administration and the economy. Am I the only one that sees these penalties as an extortion scheme by our Federal Government and our so-called Justice Department, literally the theft of the shareholders' equity of these punlicly held banks? B of A did not commit these frauds; CWB DID and the person giving testimony spoke the exact truth.
  • Tom | | 21 Nov 2013, 09:53 AM Agree 0
    I agree with Anon, this was a forced purchase of Countrywide by B of A at the direction of our government. The Feds knew there were issues with Countrywide and had B of A bail them out and now want to fine B of A for something that B of A had no part in. Another example of this governments extortion tactics
  • Greg | | 21 Nov 2013, 10:03 AM Agree 0
    Anon is correct. In my opinion I bet B of A never heard of Countrywide. B of A had lent Countrywide billions of dollars prior to their collapse. B of A did the federal government a favor by purchasing them. B of A should have purchased just the assets and left the government (or us)on the hook for the rest.
  • Carol | | 21 Nov 2013, 10:06 AM Agree 0
    I was in the Countrywide call center in Illinois for a short period of time because it was the slimiest place to work for. It was really apparent how they screwed over people who qualified for better mortgages with NO pre-payment penalty. The mortgage wasn't even clear to close and they sent Notaries to the client's house to sign the closing documents so they could make their required quotas!
  • Del | | 21 Nov 2013, 10:33 AM Agree 0
    Again it amazes me the stupidity of these prosecuters and and the American people who believe the BS. Fact is if not for BOA the Mortgage crisis could have been way worse. They were forced to buy a company that had not always played by the rules. Not BOA's Fault! This is dumb! Period!
  • Anon | | 21 Nov 2013, 10:46 AM Agree 0
    BOA's consumer direct divison has been grossly over charging fees and rates for the past 10 years. They, along with every other company that overcharges should be fined and be put out of business, period.
  • Jamie | | 21 Nov 2013, 01:03 PM Agree 0
    BofA was the biggest CWB's warehouse lender in those days and they knew exactly what was going on. They already had a big stake in losses with CWB and the only way to control the chaos was to buy what was left of CWB. CWB wanted to ride the success of First Franklin Financial and came in the game too late.
  • Lee in CA | | 21 Nov 2013, 02:47 PM Agree 0
    BofA has it own skeletons, but this case solely involves Countrywide allegations. There is no possible "fairness" to penalizing an institution just because they bought a different and virtually defunct organization. BofA has not benefitted from its purchase of Countrywide so there is no moral basis for penalizing them for actions that preceded their bailout of Countrywide.
  • Lee in CA | | 21 Nov 2013, 02:49 PM Agree 0
    Providing a warehouse line to a client does not make you aware of the internal operations of the client. If so, then every entity that provided Countrywide a warehouse line should be prosecuted.
  • Jamie | | 23 Nov 2013, 11:08 AM Agree 0
    Lee, you're right if the other warehouse lenders were in the "scheme". Merrill Lynch provided the end of conduit buying all the B paper First Franklin and CWB could supply. BoaA saw the "profits" at ML and got greedy and bought ML to strategically increase it's value. Supply CWB with BOA cash, CWB sells A- & B paper to ML, CWB repeats cycle keeping BOA happy, happy, happy. Boon to LO's who made quick cash with these new products Barney Frank allowed.
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