Insurer's MBS Fraud Claims Against BofA Pared

Law360, Los Angeles (September 25, 2013, 7:50 PM EDT) -- A New York state justice on Monday dismissed most of a fraud and breach of contract suit brought against Bank of America NA by monoline insurer CIFG Assurance North America Inc. for allegedly conning CIFG into backing risky residential mortgage-backed securities transactions.

The decision comes after a BofA attorney told Justice Charles E. Ramos in April that CIFG was relying on generic allegations about the housing market’s collapse to blame the bank for its losses instead of zeroing in on the MBS it actually insured.

The bank’s...
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