The Real Deal Miami

Plot thickens in BofA mortgage practices settlement

February 04, 2013 04:00PM

Bank of America CEO Brian Moynihan

A proposed $8.5 billion deal by Bank of America to settle claims of mortgage abuses by Countrywide Financial, which the bank bought in 2008, is in jeopardy as a new lawsuit alleges that those abuses continued after Countrywide was acquired, the New York Times reported. Three Federal Home Loan Banks, in Boston, Chicago and Indianapolis, and Triaxx, a collateralized debt obligation fund, brought the suit, filed Friday in state Supreme Court in Manhattan. [more]