© 2023 WFAE
90.7 Charlotte 93.7 Southern Pines 90.3 Hickory 106.1 Laurinburg
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations
Here are some of the other stories catching our attention.

Court Throws Out $1.3 Billion Fine Against BofA Over Mortgages

bank of america sign
Flickr / https://www.flickr.com/creativecommons/by-2.0/

A federal appeals court on Monday overturned a $1.27 billion fine against Bank of America over loans by mortgage giant Countrywide Financial, which B of A acquired in 2008.

The appeals court said in a 30 page opinion that prosecutors failed to prove that Countrywide committed fraud when it made loans through its "Hustle" mortgage program.

The U.S. Justice Department had sued the company and an executive, Rebecca Mairone, in 2013. The government argued that Countrywide lied about the quality of mortgages it sold to government-sponsored mortgage companies Fannie Mae and Freddie Mac. Three years ago,  a jury found the bank guilty.

But the 2nd Circuit Court of Appeals in New York overturned the verdict and threw out the fine, ruling there was insufficient evidence to prove that Countrywide committed mail and wire fraud.

Countrywide's "Hustle" program began after a reorganization in 2007 aimed at speeding up loan processing.  Internally, it was called the "High Speed Swim Lane," or "HSSL" - which employees pronounced "Hustle."

A Bank of America spokesman said Monday: "We are pleased with the appellate court's decision."


Aug. 14, 2014, WFAE.org, "Judge Orders Bank of America To Pay $1.3 Billion Fine"

David Boraks is a veteran journalist who covers climate change for WFAE. See more at www.wfae.org/climate-news. He also has covered housing and homelessness, energy and the environment, transportation and business.