BofA, Countrywide Sued Over Loan Quality Statements

Law360, New York (July 28, 2011, 10:37 PM EDT) -- Bank of America Corp. and Countrywide Financial Corp. were hit with a securities fraud suit Thursday alleging that its officers made false statements regarding its lending standards and loans quality.

Dozens of investors that backed out of a $624 million settlement in 2010, including pension and private investment funds, accuse Countrywide, which BofA took over in 2008, of engaging in widespread deceptive lending practices that exposed the company and investors to risk.

The mortgage giant's public statements assuring investors that the loans behind its securities were...
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