A U.S. appeals court on Monday overturned a jury’s finding that Bank of America Corp was liable for mortgage fraud leading up to the 2008 financial crisis, tossing a $1.27 billion penalty and dealing the U.S. Justice Department a major setback.
The 2nd U.S. Circuit Court of Appeals in New York ruled that the proof was insufficient under federal fraud statutes to establish liability in connection with a mortgage program called “Hustle” run by the former Countrywide Financial Corp. Continue reading “Bank of America wins reversal of $1.27 billion penalty in U.S. mortgage case”