Bank of America fined $1.27bn for defrauding mortgage agencies
Bank of America and its former COO will pay fines for lying about quality of loans sold to Fannie Mae and Freddie Mac - and the bank is now facing a multibillion dollar settlement over a separate mortgage securities case
Bank of America has been ordered to pay $1.27 billion in civil penalties for defrauding the United States, after its subsidiary Countrywide deceived government-sponsored enterprises Fannie Mae and Freddie Mac into buying poor-quality mortgage loans in 2007–9.
The penalties relate to fraud that was carried out both before and during the period when the bank received support through the Troubled Asset Relief Program (Tarp). The fraud – known internally as the 'Hustle' programme – started in 2007
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