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Bank of America liable in mortgage fraud

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NEW YORK (AP) - A New York jury has found Bank of America Corp. liable for mortgage fraud.

The verdict was returned Wednesday after a monthlong civil trial in Manhattan. The trial related to mortgages the government said were sold at break-neck speed without regard to quality as the economy headed into a tailspin in late 2007 and 2008.

The jury found Bank of America liable for actions carried out by its Countrywide Financial unit. Bank of America acquired Countrywide in July 2008.

The government had accused the financial institutions of urging workers to churn out loans, accept fudged applications and hide ballooning defaults.

Bank of America had denied there was any fraud.

A judge says it will be decided Thursday when a penalty phase of the trial will begin.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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