Housing Policy

Bank of America Found Liable for Mortgage Fraud

Sold by its Countrywide unit

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Bank of America Corp was found liable for fraud on Wednesday on claims related to defective mortgages sold by its Countrywide unit, a major win for the U.S. government in one of the few big trials stemming from the financial crisis.

Following a four-week trial, a federal jury in Manhattan found the Charlotte, North Carolina bank liable on one civil fraud charge in connection with shoddy home loans that the former Countrywide Financial Corp sold to Fannie Mae and Freddie Mac and originated in a process called "Hustle."

The four men and six women on the jury also found a one-time Countrywide executive, Rebecca Mairone, liable on the one fraud charge facing her.