The US is seeking $863.6 million in damages from Bank of America after a federal jury found the firm liable for fraud over defective mortgages sold by its Countrywide unit.

The US
government is seeking $863.6 million in damages from Bank of America after a
federal jury found the firm liable for fraud over defective mortgages sold by
its Countrywide unit, Reuters reports. 

The case relates to a mortgage lending process at
Countrywide - which Bank of America bought in July 2008 - dubbed “Hustle” (High-Speed
Swim Lane).

As reported last year, “Hustle” rushed through loans without quality checkpoints,
resulting in thousands of fraudulent and defective residential mortgages sold
to government-backed entities Fannie Mae and Freddie Mac (the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation,
respectively.)

“Almost a year to the day after we brought suit, a unanimous
jury has found Countrywide, Bank of America, and senior executive Rebecca
Mairone liable for making disastrously bad loans and systematically removing
quality checks in favor of its own balance,” said US attorney Preet Bharara in
a statement last week.

BoA defended Countrywide’s conduct with “all its might and
money,” Bharara added.

BoA is reportedly scheduled to respond to the government's
penalty request by November 20, 2013.