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Ex-Countrywide executive denies fraud at BofA trial over mortgages

Ex-Countrywide executive denies fraud at BofA trial over mortgages

A former executive of Bank of America’s (>> Bank of America Corp) Countrywide unit told a federal jury on Tuesday that she did not knowingly sell toxic mortgages to Fannie Mae and Freddie Mac in the run-up to the financial crisis.

A former executive of Bank of America’s (>> Bank of America Corp) Countrywide unit told a federal jury on Tuesday that she did not knowingly sell toxic mortgages to Fannie Mae and Freddie Mac in the run-up to the financial crisis.

Rebecca Mairone, a former chief operating officer of Countrywide’s Full Spectrum Lending Division, is the lone individual defendant in the lawsuit brought by the U.S. government against the bank, which acquired Countrywide in 2008.

The trial, now in its fourth week in U.S. District Court in Manhattan, is centered on the government’s allegations that Countrywide defrauded Fannie Mae (>> Federal National Mortgage Association) and Freddie Mac (>> Federal Home Loan Mortgage Corp), the government-sponsored mortgage finance companies, by selling them thousands of defective mortgages. Countrywide sped up approvals to unqualified lenders in a process it called the “high-speed swim lane” (HSSL), or “Hustle.”

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