NY jury: Bank of America liable in mortgage fraud

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Associated Press

Posted on October 23, 2013 at 9:00 PM

Updated Wednesday, Oct 23 at 9:03 PM

NEW YORK (AP) — Bank of America says it's evaluating its options for appeal after being found liable for fraud in a New York civil trial.

The case relates to mortgages the government says were sold without quality controls as the economy headed into a tailspin.

A Manhattan jury returned its verdict Wednesday following a monthlong trial focusing on prime mortgages that Bank of America's Countrywide Financial unit completed in late 2007 and 2008.

Prosecutors say the companies are "liable for making disastrously bad loans and systematically removing quality checks" in a rush for "easy mortgage money." They say mortgage profit was "built on fraud."

Bank of America Corp. spokesman Lawrence Grayson says the jury's decision concerned one Countrywide program that lasted several months and ended before Bank of America's acquisition of the company.

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