Comment on Bank Of America Doesn’t Want To Pay $1.27B For Countrywide’s “Hustle” Mortgage Scam

Bank Of America Doesn’t Want To Pay $1.27B For Countrywide’s “Hustle” Mortgage Scam

(frankieleon)Between settlements, fines, legal fees, and loan reductions, Bank of America’s tab for its part in the mortgage meltdown is well over $50 billion, including last week’s record-setting $16.65 billion deal. And yet BofA is still trying to fight a nearly year-old jury verdict involving a scam by Countrywide Financial that sold off oodles of worthless home loans before the housing bubble collapsed. It was last October that a federal jury found BofA liable for the misdeeds of Countrywide’s High Speed Swim Lane (HSSL, aka “The Hustle”) program, which began in the final, doomed days of the housing bubble with the goal of approving as many loans as possible in order to quickly resell them to Fannie Mae or Freddie Mac before they realized the mortgages weren’t worth the Post-It notes on which they’d been written. In order to expedite loan approvals, the Hustle removed the typical underwriting safeguards that would usually prevent a lender from making a bad loan.

 

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