Updated with JPMorgan declining comment.NEW YORK ( TheStreet) -- A Countrywide executive mentioned in the U.S. lawsuit against Bank of America ( BAC) Wednesday for allegedly ignoring warnings about the firm's defective loan origination process is now a home lending executive at JPMorgan Chase ( JPM). Rebecca Mairone was Chief Operating Officer at Countrywide's Full Spectrum Lending Unit, which implemented a new origination process called "Hustle" to fast track the underwriting and processing of loans to boost volume and revenue. According to her LinkedIn profile, Mairone has been with JPMorgan since March 2012. Her title is listed as Home Lending Executive, Managing Director at JPMorgan Chase. Calls to Mairone's office at JPMorgan were directed to the bank's communications office. JPMorgan declined to comment. According to a complaint filed by the U.S. Department of Justice Wednesday, the "Hustle" origination process resulted in billions of dollars of defective loans. Internal quality control checks at Countrywide revealed that the origination process was creating highly defective loans that would not meet GSE standards, but Mairone and Greg Lumsden, President of the unit, allegedly ignored those findings. The U.S. Department of Justice
Internal quality reviews also confirmed that the quality of the loans originated were poor, according to the complaint. However, the officials ignored the information and continued with Hustle as planned and restricted the dissemination of the quality reviews, the complaint alleged. When a senior manager Edward O'Donnell, concerned about the high defect rates, offered to conduct quality checks, Mairone permitted them to be conducted in parallel so as to not "slow down" the fast approval of loans, the lawsuit charges. According to the division's internal reports, in January 2008, FSL's rates of materially defective loans were 57% overall. Still, "Rather than alter or abandon the Hustle model, FSL's COO prohibited O'Donnell's teams from circulating the pre-funding quality reports outside of FSL," the complaint said. Mairone was Countrywide Financial's Chief Operating Officer between February 2006 and June 2008. After the firm's takeover in 2008, she became National Retail Operations Sales Executive at Bank of America and later a National Mortgage Outreach Executive at the bank. Mairone testified before the House Financial Services Committee in 2010 as the default servicing executive of Bank of America regarding the firm's handling of delinquent loans. In an article in the
Huffington Post that same year , she defended the bank's foreclosure record. As for the other exec named in the complaint, Greg Lumsden, all we can gather from his LinkedIn profile is that he is now an "independent mortgage consultant" and runs a training program for kid golfers. Written by Shanthi Bharatwaj in New York.