Countrywide to pay $1.3bn to settle mortgage probe

by Ryan Smith30 Jul 2014
Bank of America’s Countrywide unit has been ordered to pay a $1.3 billion settlement for shoddy loans sold to Fannie Mae and Freddie Mac.

The judgment is a little more than half what the government had sought, according to a Bloomberg report. Countrywide and former executive Rebecca Mairone were found liable for fraud in October. Mairone was ordered to pay the government $1 million.

Bank of America is also in separate talks with the Justice Department to resolve other mortgage probes. The bank had offered to pay $13 billion to settle the investigations, while the government has asked for $17 billion. The talks continued today, and a settlement could be reached this week, Bloomberg reported.
 

Poll

Should CFPB have more supervision over credit agencies?