Bank of America fined $1.27bn for defrauding mortgage agencies

Bank pays fine for mortgage fraud in the lead-up to the financial crisis

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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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