BofA Reaches $500M Deal In Countrywide MBS Class Action

Law360, New York (April 17, 2013, 1:32 PM EDT) -- Bank of America Corp. on Wednesday announced the $500 million settlement of three California class actions launched by purchasers of mortgage-backed securities issued by Countrywide Financial Corp., the largest settlement of MBS class claims to date.

The resolutions wrap up lawsuits alleging Countrywide subsidiaries made false statements about the quality of the mortgages underlying securities purchased by institutional investors, like the Vermont Pension Investment Committee and the Maine State Retirement System, between 2005 and 2007, the bank said in its first quarter earnings release.

“This settlement...
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