BofA’s Countrywide Must Face FHFA’s Securities Fraud Claims
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Bank of America Corp.’s Countrywide Financial unit must face securities fraud claims by the Federal Housing Finance Agency, which sued for damages as the conservator for Fannie Mae and Freddie Mac.
U.S. District Judge Mariana Pfaelzer in Los Angeles, in a March 15 decision, denied Countrywide’s request to dismiss the FHFA’s claims. Countrywide claimed that the agency failed to provide sufficient factual information that the offering documents for residential mortgage-backed securities contained misrepresentations.