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Bank of America's Countrywide ordered to pay $1.3 billion
Bank of America's Countrywide ordered to pay $1.3 billion

Bank of America Corp.'s Countrywide unit was ordered to pay $1.3 billion in penalties for defective mortgage loans sold to Fannie Mae and Freddie Mac in the run-up to the 2008 financial crisis, a little more than half of what the federal government had requested. U.S. District Judge Jed Rakoff in Manhattan issued the civil penalty against the Charlotte, N.C.-based bank Wednesday in the first mortgage-fraud case brought by the federal government to go to trial. Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable by a jury in Manhattan federal court in October for selling thousands of bad loans to the two government-sponsored enterprises....