Assured, BofA Strike $1.6B Deal Over MBS Claims

Law360, New York (April 15, 2011, 7:11 PM EDT) -- Bank of America Corp. agreed Friday to pay bond insurer Assured Guaranty Ltd. $1.6 billion to resolve repurchase claims surrounding more than two dozen mortgage-backed securities transactions that faltered.

The agreement, which Assured said was negotiated outside of litigation, settles liability issues related to 29 residential MBS transactions issued by BofA and its subsidiaries, including Countrywide Financial Corp., and insured by Assured, the companies said in separate statements.

Assured sought reimbursement for alleged breaches of representations and warranties, as well as historical loan servicing issues involving...
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