Bank Of America Facing $864 Million Fine After Mortgage Fraud Verdict [View all]

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http://www.huffingtonpost.com/2013/11/09/bank-of-america-fine-mortgage-fraud_n_4246315.html



Bank Of America Facing $864 Million Fine After Mortgage Fraud Verdict
By Nate Raymond and Jonathan Stempel
Reuters | Posted: 11/09/2013 10:16 am EST | Updated: 11/09/2013 11:05 am EST

NEW YORK, Nov 9 (Reuters) - The U.S. government urged that Bank of America Corp pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit.

In a filing late Friday in the U.S. District Court in Manhattan, the government also asked for penalties against Rebecca Mairone, a former midlevel executive at the bank's Countrywide unit who the jury also found liable, "commensurate with her ability to pay."

The government said the penalties were necessary to punish the bank and Mairone "and to send a clear and unambiguous message that mortgage fraud for profit will not be tolerated."

Bank of America and Mairone were each found liable for defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac through the sale of shoddy loans purchased from Countrywide in 2007 and 2008.