Bank of America challenges $1.3 B verdict over mortgages

Bank of America urged a federal appeals court to reverse a $1.3 billion fraud verdict in a U.S. lawsuit claiming it sold defective residential mortgage loans to Fannie Mae and Freddie Mac that defaulted.

“The case should never have gone to trial,” the Charlotte-based bank said in a brief filed with the U.S. Court of Appeals in Manhattan.

In February, a federal judge denied Bank of America’s request to overturn a jury’s verdict that found it liable for fraud over mortgages made in a program nicknamed “Hustle.” The mortgages were made under a program operated by Countrywide Financial, which the bank bought in 2008.

The government argued that the program generated loans with a focus on speed and volume over quality. Countrywide, the government claimed, marketed the loans as investment grade despite their poor quality. Observer archives contributed

This story was originally published April 22, 2015 at 5:26 PM with the headline "Bank of America challenges $1.3 B verdict over mortgages."