U.S. attorney wants DOJ to take civil action against BofA: filing

NEW YORK Wed Oct 30, 2013 7:38pm EDT

The logo of the Bank of America is pictured atop the Bank of America building in downtown Los Angeles November 17, 2011. REUTERS/Fred Prouser

The logo of the Bank of America is pictured atop the Bank of America building in downtown Los Angeles November 17, 2011.

Credit: Reuters/Fred Prouser

NEW YORK (Reuters) - Staff of a U.S. Attorney's office recently told Bank of America Corp that they plan to recommend the U.S. Department of Justice file a civil action against the bank related to securitization of mortgages, according to a regulatory filing on Wednesday.

That investigation is one of several the second-largest U.S. bank is trying to resolve over mortgage practices of its own legacy business, as well as those of Countrywide and Merrill Lynch, which it acquired during the 2007-2009 financial crisis.

The bank did not name which U.S. attorney was planning to make the recommendation.

Bank of America also lifted its estimate for possible losses above what it has already set aside to cover litigation expenses, according to its 10-Q filing with the U.S. Securities and Exchange Commission.

Bank of America now estimates its litigation losses may exceed reserves by up to $5.1 billion, up from a prior estimate of $2.8 billion.

(Corrects to show a U.S. attorney's office, not the U.S. attorney's office)

(Reporting by Lauren Tara LaCapra, Peter Rudegeair and David Henry; Editing by Bernard Orr)

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Comments (1)
CharlesReed wrote:
There is a problem with everyone of the Countrywide government loans in Ginnie Mae pools, as BOA cannot be the owner of any of these loans. Forgeries were and are needed to foreclose on these properties as BOA does not have a financial interest in the loans, just as Countrywide did not have a financial interest in after the relinquished the blank endorsed Notes to Ginnie Mae.

What you got not only with BOA but also with Wells Fargo and it handling of Washington Mutual Bank’s government loans that were and are in the Ginnie Mae pools.

Fannie and Freddie are getting monies back, do what about VA & FHA loans crimes? We are talking about 800,000 loans in 2009-2010 alone that were illegally foreclosed and False Claims were received!

Oct 30, 2013 7:37pm EDT  --  Report as abuse
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