Trustee Wants BofA To Buy Back Loans In $1.75B Trust

Law360, New York (August 30, 2011, 6:06 PM EDT) -- A U.S. Bancorp unit, a trustee for a $1.75 billion mortgage pool, sued Bank of America Corp. on Monday in New York in order to force the financial services giant to buy back all loans in a securitized trust because of allegedly false statements it made about their quality.

Countrywide Financial Corp., which Bank of America bought in 2008, had originated more than 4,000 loans that were pooled together and and securitized into a trust. Though Countrywide said the loans complied with underwriting guidelines and met...
To view the full article, register now.