BofA, Citi Lied About MBS Practices: Suits

Law360, New York (May 6, 2011, 1:57 PM EDT) -- Bank of America Corp. and Citigroup Inc. said Thursday they are facing new lawsuits from a Massachusetts public bank and insurers alleging they lied about their process for originating and issuing residential mortgage-backed securities.

The banks reported that the Federal Home Loan Bank of Boston sued them in April in Massachusetts state court claiming they made misstatements and omissions related to their RMBS practices, according to regulatory forms filed with the U.S. Securities and Exchange Commission

FHLB Boston’s suits join the growing list of RMBS-related federal...
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