Skip to Content

Get Your FREE Consultation


Bank of America Goes to Trial on Mortgage Fraud Charges

October 8, 2013

Jury selection began on October 1, 2013 in the government’s first financial crisis case to go to trial against a major bank over defective mortgages. The case involves claims that Bank of America’s Countrywide unit approved deficient home loans in a process called “Hustle,” defrauding Fannie Mae and Freddie Mac, the U.S. government enterprises that underwrite mortgages.

The lawsuit was filed in 2012 by the U.S. Department of Justice and blames the bank for more than $1 billion in losses to Fannie Mae and Freddie Mac, which bought mortgages that later defaulted. The lawsuit arose from a whistleblower case brought by former Countrywide Financial Corp. executive Edward O’Donnell. The lawsuit centers on allegations that Countrywide, in its haste to streamline and quicken its loan origination business, eliminated loan quality checkpoints and began paying employees based only on the volume of loans they produced. According to the Justice Department, the result was “rampant instances of fraud and other serious loan defects” in the mortgages sold to Fannie Mae and Freddie Mac, despite assurances that Countrywide had tightened underwriting guidelines.

The case is U.S. ex rel. O’Donnell v. Bank of America Corp., et al. and is pending in the U.S. District court for the Southern District of New York.

No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“Thank you so much for everything that you did for Gene and I in our lawsuit and trial. We appreciate all of the hard work, long hours and care that was shown to us. All of you are such special people to us. We are so fortunate to have been represented by the five of you. I hope that you got the chance to get some well deserved rest and sleep.  Thanks again for everything. Sincerely…”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.