Bank of America found liable in U.S. mortgage fraud trial
Bank of America (BoA) has been found liable for civil fraud for selling defective mortgages.
The ruling is said to be a major victory for the U.S. government in its aggressive effort to hold banks accountable for their role in the housing crisis.
A federal jury in Manhattan found the Charlotte bank in North Carolina liable for selling home loans to government mortgage giants Fannie Mae and Freddie Mac in a process called "Hustle", Fox Business reports.
The jury also found a top manager at Bank of America's Countrywide Financial unit, Rebecca Mairone, liable on one fraud charge of having opted for quantity over quality in its mortgage-writing program.
According to the report, the lawsuit stirred up from a whistleblower case originally brought by Edward O'Donnell, a former Countrywide executive.