US asks BOA to pay $864mn in penalty for bad mortgages

The US government reportedly wants the Bank of America to pay 864 million dollars in penalty over bad loans made from August 2007 until April 2008 and purchased by Fannie Mae and Freddie Mac.

According to Fox News, the mortgages were part of a program called 'Hustle', created by Countrywide, which aimed to quickly make loans that were then sold to government sponsored enterprises Fannie and Freddie.

The government said that the penalty would cover Fannie and Freddie's gross losses from 'Hustle', the report added.