Countrywide Says FDIC's $250M MBS Suit Is Untimely

Law360, New York (October 5, 2012, 2:42 PM EDT) -- Countrywide Financial Corp. on Thursday urged a judge to dismiss as time-barred claims it fraudulently sold $250 million in residential mortgage-backed securities to now-defunct Franklin Bank, allegations that are part of multidistrict litigation the Federal Deposit Insurance Corp. has brought against Countrywide.

The FDIC, which has acted as receiver for Franklin since the Texas-based bank went belly-up in 2008, sued Countrywide in November, accusing it of making material misrepresentations about the residential mortgage loans underlying six Countrywide residential-mortgage-backed securities Franklin purchased between 2005 and 2007. But...
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