U.S. accuses Bank of America of mortgage-backed securities fraud | Reuters

U.S. accuses Bank of America of mortgage-backed securities fraud | Reuters
The two suits accuse Bank of America of making misleading statements and failing to disclose important facts about the mortgages underlying a securitization named BOAMS 2008-A. "These misstatements and omissions concerned the quality and safety of the mortgages collateralizing the BOAMS 2008-A securitization, how it originated those mortgages and the likelihood that the 'prime' loans would perform as expected," the Justice Department said in its statement. A "material number" of mortgages in the pool "failed to materially adhere to Bank of America's underwriting standards," the statement said. Bank of America has announced a series of settlements with investors and the U.S. government, including an $8.5 billion settlement with investors in mortgage-backed securities and a $1.6 billion deal with bond insurer MBIA Inc.
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These securitizations go back to 2008, just when the whole house of cards was collapsing.