Insurer Sues BofA Over $94M MBS Investment

Law360, New York (November 9, 2011, 11:20 PM EST) -- National Integrity Life Insurance Co. sued Bank of America Corp. on Wednesday in New York for allegedly ignoring underwriting standards and selling the insurer $94 million in securities backed by risky mortgages.

In a 129-page complaint filed in the Southern District of New York, National Integrity took aim at BofA unit Countrywide Financial Corp., ex-CEO Angelo Mozilo and other executives, accusing them of using fraudulent underwriting practices to approve any loan that could be off-loaded on investors, who were misled about the underlying mortgages.

“In order...
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