A federal judge’s ruling requiring Bank of America Corp. to pay more than $1 billion in penalties over agency loans originated by Countrywide Financial Corp. in its “Hustle” program has been reversed on appeal.
In July 2014, U.S. District Court Judge Jed S. Rakoff ruled that BofA must pay $1.267 billion in penalties in a lawsuit that was filed in February 2012 under the whistleblower provision of the False Claims Act.
The case revolved around allegedly sub-par home loans that were originated by Countrywide through its “High Speed Swim Lane” — or “Hustle” — program and sold to Fannie Mae and Freddie Mac.
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