Bank of America ordered to pay $1.27B for 'Hustle' fraud

A federal judge on Wednesday ordered Bank of America to pay $1.27 billion of damages after a federal jury found the second-largest U.S. bank liable for fraud over defective mortgages sold by its Countrywide unit.

The judgment comes nine months after jurors found Bank of America and former Countrywide executive Rebecca Mairone liable for defrauding government-controlled Freddie Mac and Fannie Mae by selling the companies shoddy loans via the former Countrywide Financial Inc. in 2007 and 2008, according to Reuters.

The case focused on a mortgage lending process known as "High Speed Swim Lane," "HSSL" or "Hustle," which reportedly ended before Bank of America purchased Countrywide in July 2008.

Read more from Reuters.[[In-content Ad]]