(CNN) – Countrywide Financial defrauded Fannie Mae and Freddie Mac by selling the defective mortgages, according to the ruling of a federal jury on Wednesday.
The Justice Department lawsuit focused on a Countrywide program, nicknamed "The Hustle."
Prosecutors say the loans were processed quickly and without quality checkpoints.
Fannie Mae and Freddie Mack suffered "hundreds of millions of dollars in losses," according to the lawsuit.
Bank of American acquired Countrywide in 2008 and is now responsible for its liabilities.
Rebecca Mairone, a former Countrywide executive, was also found liable in the case.
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