$8.5B BofA Mortgage Pact Hid Self-Dealing, Investors Say

Law360, New York (February 4, 2013, 4:53 PM EST) -- Investors challenging Bank of America Corp.'s $8.5 billion settlement over mortgage-backed securities issued by Countrywide Financial Corp. on Friday alleged the bank had used mortgage modifications to avoid buying back up to $30 billion in loans.

In a letter to Judge Barbara R. Kapnick of New York State Supreme Court, the Federal Home Loan Banks of Boston, Chicago and Indianapolis and the Triaxx funds claim Bank of America engaged in self-dealing by only modifying first-lien mortgages held by investors rather than second-lien home loans held by...
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