New York AG investigating BofA for mortgages: filing

Thu Feb 28, 2013 6:29pm EST

Tourists walk past a Bank of America banking center in Times Square in New York June 22, 2012. REUTERS/Brendan McDermid

Tourists walk past a Bank of America banking center in Times Square in New York June 22, 2012.

Credit: Reuters/Brendan McDermid

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(Reuters) - Bank of America Corp (BAC.N) said in a securities filing Thursday that the New York State Attorney General is investigating the bank over the purchase, securitization and underwriting of home loans and mortgage-backed securities.

The second-largest U.S. bank said it was cooperating with the investigation and other similar inquiries. A Bank of America spokesman declined to comment beyond the filing.

The bank is the third known to be targeted by the New York attorney general's office over how banks bundled mortgage loans into securities during the housing boom.

In its annual report filing with the U.S. Securities and Exchange Commission, Bank of America also said it could sustain up to $3.1 billion in legal losses beyond the amount it has reserved. That was up from a possible loss above legal reserves of $2.8 billion at the end of the third quarter.

(Reporting By Rick Rothacker, Aruna Viswanatha, Karen Freifeld and Lauren Tara LaCapra; Editing by Tim Dobbyn and Martin Golan)

FILED UNDER:
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Comments (2)
CharlesReed wrote:
The problem BOA has with Countrywide loans is what Wells Fargo Bank has with the Government insured loans (FHA, VA, USDA) that they are still servicing with the Jul 31, 2006 servicing agreement with Washington Mutual Bank (WaMu).

Everyone thinks that JPMorgan Chase took over all the loans of WaMu, but WaMu placed these loans (1.3 million) into Ginnie Mae pools so it could not sell the loans once they relinquish the blank endorse Notes to Ginnie Mae.

What not being understood is the fact that Ginnie Mae is not a lender and cannot and did not buy or sell a home mortgage loan at all. So with what occurred and the millions of foreclosures Ginnie Mae cannot any longer hide the error of how these loans/Notes are being held without any financial ownership of the debt.

So we found ourselves in a situation were Ginnie Mae in concert with these lenders/servicers where they had to submit phony title assignments helped by MERS, so that a administrative foreclosure could be preformed.

On top of what the homeowners lost, the Federal Government paid out False Claims as a result of the damage caused by the parties claiming insurance claims. One cannot cause the damage and receive a payout in return. We the Federal Government are due back $8 billion plus treble damages of $24 billion. So is there a reason we are not demanding our money back?

Feb 28, 2013 9:07pm EST  --  Report as abuse
DBTY wrote:
Unflipping believable and nothing being done to Deutsche Bank– follow the fraud.. it ends at Deutsche .. Country Wide , Wamu, Long Beach, BOFA, Wels and Chase may of been involved – but the biggest fraud will be found in Deutsche bank .. send them packing back to Germany..

Mar 01, 2013 7:27pm EST  --  Report as abuse
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