Countrywide, Bank of America Sued by MBIA Insurance
July 14, 2009 by admin
Claiming that it lost $1 billion on fraudulent mortgage-backed securities, a giant insurer filed a lawsuit Friday seeking to recover damages from Countrywide Financial Corp. and Bank of America Corp., which acquired Countrywide last year.
The Los Angeles County Superior Court lawsuit was filed on behalf of MBIA Insurance Corp. of New York.
It contends that Countrywide and its top executives failed to disclose that during the housing boom they had abandoned their stated lending standards, instead making unaffordable loans based on falsified income figures. Read more about the MBIA lawsuit…
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