BofA Ducks Insurers' MBS Fraud Suit But Countrywide On Hook

Law360, New York (December 7, 2012, 3:02 PM EST) -- A California federal judge on Thursday dismissed Bank of America Corp. from a fraud suit brought by several insurance companies over alleged misrepresentations about $114 million in residential mortgage-backed securities, but refused to let Countrywide Financial Corp. completely escape the charges.

U.S. District Judge Mariana R. Pfaelzer found that Minnesota Life Insurance Co. and its fellow plaintiffs put forth sufficient claims concerning Countrywide's alleged misstatements of underwriting guidelines, appraisals, loan-to-value ratios and credit ratings, declining to grant Countrywide's motion to dismiss in its entirety.

Although Countrywide...
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