By Debra Cassens Weiss
A federal judge in Manhattan has ordered Bank of America to pay $1.2 billion in civil penalties for defective mortgages sold to Fannie Mae and Freddie Mac.
U.S. District Judge Jed Rakoff ordered the payment in a Wednesday decision after a federal jury determined that Bank of America’s Countrywide unit had engaged in an intentional scheme to misrepresent the quality of its mortgages, the New York Law Journal reports. He also ordered former Countrywide executive Rebecca Mairone to pay $1 million. The Wall Street Journal Law Blog, Reuters and Bloomberg also have stories. Read the rest of this entry »