Bank of America ordered to pay $1.27 billion for Countrywide fraud

A federal judge on Wednesday ordered Bank of America Corp (BAC.N) to pay $1.27 billion of damages after a federal jury found the second-largest U.S. bank liable for fraud over defective mortgages sold by its Countrywide unit. The decision by U.S. District Judge Jed Rakoff in Manhattan came nine months after jurors found Bank of America and former Countrywide executive Rebecca Mairone liable for defrauding government-controlled mortgage companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) through the sale of shoddy Countrywide loans in 2007 and 2008. Rakoff said Fannie Mae and Freddie Mac bought $2.96 billion of questionable loans.

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