Bank of America recently moved to dismiss a lawsuit filed by Ambac Assurance Corp. in New York state court, alleging $600 million in damages for fraudulent inducement in connection with payments it made under policies insuring faulty residential mortgage-backed securities issued by Countrywide. In its complaint filed at the end of 2014, Ambac claims that... Continue Reading
The Department of Jusitce and the SEC have recently filed suits against Bank of America for allegedly defrauding buyers of its mortgaged-backed securities back in 2008. A Bank of America spokesman has responded by saying, essentially, the buyers were sophisticated enough to know better and had access to plenty of data on them. View Full Post
It seems that some of the nation’s largest public company banks must be avid readers of this blog and have taken to heart our 2013 prediction that the SEC would require greater disclosure related to data security risks and breaches. In their recent annual reports, Goldman Sachs Group Inc., Citigroup, Inc., Bank of America Corp.... Continue Reading
Bank of America’s $8.5 billion settlement in 2011 to resolve claims over Countrywide’s mortgage abuses may be in jeopardy. Last week, a group of investors, the Triaxx funds and the Federal Home Loan Banks of Boston, Indianapolis and Chicago, all of which hold certificates of mortgage-backed securities issued by the trusts covered by the settlement,... Continue Reading
In what is by far the largest settlement of a credit crisis-related securities class action lawsuit, Bank of America has agreed to pay $2.43 billion to settle the suit filed against the company and certain of its directors and officers in connection wi...
Hard Stance? Bank of America has lowered its reserves established for payments in response to mortgage buy-back demands. The announcement, coming in the banking giant’s quarterly earnings report, indicates BofA set aside less money in the first quarter of 2012 to cover the cost of “repurchase” demands than it had at any time since the... Continue Reading
Aggregator Banks and Repurchase or Make Whole Claims As most correspondents/originators are now painfully aware, aggregator banks are unleashing a barrage of “repurchase” or “make whole” claims related to loans sold by the correspondent years ago. The aggregators cite supposed loan level breaches of representations and warranties in the applicable mortgage purchase and sale agreement or... Continue Reading
As described on TheNicheReport.com last week, the rising number of allegedly flawed mortgage loans sold to Fannie Mae by Bank of America has created a rift between these two behemoths, each of which was bailed out by the U.S. government when the American real estate bubble burst. Now, Fannie Mae is pressuring lender Bank of America to cover... Continue Reading
On Wednesday, March 7, 2012, the SEC's Division of Corporate Finance responded to a series of No-Action Requests regarding issues under Exchange Act Rule 14a-8 (under which eligible shareholders are permitted to require companies to include shareholder...
I am very pleased to announce that Stan Mabbitt, a nationally recognized consumer financial services lawyer, has joined Ballard Spahr as of counsel in our Phoenix and Washington, D.C., offices. I also welcome Stan as a regular contributor to our blog. We hit the trifecta when Stan agreed to join us. He has a rare... More >
Aetna Life Insurance Company (Aetna) was recently sued in three cases in the Federal Courts of Oregon, Tennessee, and Missouri by three separate Plaintiffs due to the wrongful denial of long-term disability benefits as covered by the Employee Retiremen...