Judge denies Countrywide request to dismiss FHFA claims

03/19/2013 | Bloomberg

Countrywide Financial, now part of Bank of America, failed to persuade a federal judge to dismiss claims brought by the Federal Housing Finance Agency on behalf of Fannie Mae and Freddie Mac. Countrywide argued that FHFA did not provide enough information to prove that there were factual misrepresentations in mortgage-backed securities offering documents. "The mere expansion of underwriting guidelines does not support a claim under the securities laws, but failing to disclose that expansion to investors constitutes a viable misstatement," District Judge Mariana Pfaelzer said.

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