Bank of America forced to face mortgage fraud trial
Judge rejects request to dismiss case
Bank of America (BAC) will be forced to face a trial next month in a lawsuit alleging the bank’s Countrywide unit defrauded Fannie Mae and Freddie Mac by selling them billions of dollars in bad mortgages, Bloomberg reported. The news publication explained the ongoing legal battle in a recent article:
U.S. District Judge Jed Rakoff in Manhattan issued a ruling today rejecting the bank’s request to dismiss the case, putting it on track for a trial scheduled to begin Sept. 23.
“The court concludes that there remain genuine factual disputes that, on at least one or more of the government’s theories, precludes the granting of summary judgment to any defendant,” Rakoff said in a one-page order, saying he would file a full opinion at a later date.