U.S. government fires back at Bank of America

by Justin da Rosa27 Jul 2015
The U.S. government is urging a federal appeals court not to overturn a judge’s ruling that Bank of America should have to pay $1.27 billion in penalties for mortgages sold by a BoA subsidiary.

The government filed its opposition of the bank’s appeal of penalties levied against it last year regarding mortgages sold by Countrywide Financial Corp’s “Hustle” program.

According to the Charlotte Observer, The Charlotte bank was ordered to pay the penalties after a jury in 2013 found Countrywide Financial liable for knowingly selling bad home loans to mortgage giants Fannie Mae and Freddie Mac.

The American government argued that the aptly-named “Hustle” program prioritized speed over the quality of underwriting and that staff members were compensated based on volume.

The government filed Wednesday and reiterated its belief that Countrywide committed fraud by knowingly selling dangerous mortgages.

Also charged was Countrwide executive Rebecca Mairone, who was ordered to pay a $1 million penalty. She is also appealing.

For its part, the Bank of America argued in its April appeal that the trial was mishandled and rife with errors. 
 

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