Foreclosures, Timothy Kingcade Posts

Bank of America Ordered to Pay $863.6 Million Following Fraud Verdict

The U.S. government has declared that Bank of America pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit. In addition, the government also asked for penalties against Rebecca Mairone, a former midlevel executive at the bank’s Countrywide unit who the jury also found liable.

The government said these penalties were necessary and it intends “to send a clear and unambiguous message that mortgage fraud for profit will not be tolerated.” Bank of America and Mairone were each found liable for defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac through the sale of fraudulent loans purchased from Countrywide in 2007 and 2008. Mairone has since joined JPMorgan Chase & Co and denied any wrongdoing.

The government said that Countrywide’s program emphasized short term gains and rewarded employees for quantity over quality, eliminating checkpoints designed to ensure the loans were sound. The verdict has been considered a major victory for the U.S. Department of Justice, which has been criticized for failing to hold banks and individuals accountable for their roles in the events leading up to the 2008 financial crisis.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.