BofA, Countrywide Dodge 2nd Suit Over Risky MBS

Law360, New York (March 16, 2011, 9:48 PM EDT) -- A New York federal judge dismissed a second mortgage-backed securities suit accusing Bank of America Corp. and its subsidiary Countrywide Financial Corp. of issuing risky subprime home loans and misleading investors about their underwriting guidelines.

In an order filed Tuesday in the U.S. District Court for the Southern District of New York, Judge P. Kevin Castel granted Countrywide's motion for summary judgment, saying that the suit had been filed after the three-year statute of repose mandated by the Securities Act of 1933.

The mortgage-backed securities in...
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