Judge orders Bank of America to pay $1.27 billion in ‘hustle’ case

Judge orders Bank of America to pay $1.27 billion in ‘hustle’ case - The Wall Street Journal - MarketWatch

A jury in October had found the bank BAC +2.05%  liable for fraud over the program, which prosecutors said churned out mortgage loans with an eye on quantity, not quality, and then sold them to investors like mortgage-finance giants Fannie Mae and Freddie Mac.

The government had sought a bigger penalty, $2.1 billion, but the bank had argued that it should pay far less. The bank argued that the Hustle program ended before it bought Countrywide in 2008. A Bank of America spokesman said Wednesday that the bank will assess its options for an appeal.