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New York AG investigating BofA for mortgages: filing
February 28, 2013 / 10:06 PM / 5 years ago

New York AG investigating BofA for mortgages: filing

(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.

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

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

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